As Gulf markets face downward pressure due to escalating trade tensions and fears of a global recession, investors are seeking stability amidst volatility. In such uncertain times, dividend stocks can offer a steady income stream, providing potential value through regular payouts even when market conditions are challenging.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Commercial Bank of Dubai PSC (DFM:CBD)
7.15%
★★★★★★
Emaar Properties PJSC (DFM:EMAAR)
8.66%
★★★★★☆
Arab National Bank (SASE:1080)
6.39%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
7.76%
★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)
Overview: Dubai Refreshment (P.J.S.C.) is involved in bottling and selling Pepsi Cola International products both within the United Arab Emirates and internationally, with a market cap of AED2.07 billion.
Operations: Dubai Refreshment (P.J.S.C.) generates revenue primarily from the canning, bottling, distribution, and trading of soft drinks and related beverage products, totaling AED817.99 million.
Dividend Yield: 4.3%
Dubai Refreshment (P.J.S.C.) has declared a dividend distribution of AED 90 million, equating to AED 1 per share. Despite a volatile dividend history over the past decade, the company's current dividends are covered by both earnings and cash flows, with payout ratios of 69.4% and 51%, respectively. However, its net profit margin has decreased significantly from last year. The stock trades at a discount to its estimated fair value but offers a lower-than-average yield in the AE market.
Overview: Akçansa Çimento Sanayi ve Ticaret Anonim Sirketi, along with its subsidiaries, operates in the production and sale of cement, clinker, ready-mix concrete, and aggregates both in Turkey and internationally, with a market cap of TRY32.64 billion.
Operations: Akçansa Çimento Sanayi ve Ticaret Anonim Sirketi generates revenue from its main segments, with Cement contributing TRY12.35 billion and Ready Mixed Concrete adding TRY7.36 billion.
Dividend Yield: 3.5%
Akçansa Çimento Sanayi ve Ticaret Anonim Sirketi's dividend yield of 3.52% places it in the top 25% of Turkish dividend payers, yet its dividends are not well covered by earnings due to a high payout ratio of 105.3%. While cash flows cover the dividends with a lower cash payout ratio of 46.4%, the company's dividend history has been volatile and unreliable over the past decade. Recent earnings showed a decline in both sales and net income, impacting profitability.
Overview: Yapi ve Kredi Bankasi A.S., along with its subsidiaries, offers commercial banking and financial products and services both in Turkey and internationally, with a market cap of TRY206.95 billion.
Operations: Yapi ve Kredi Bankasi A.S. generates revenue from various segments, including Retail Banking (Incl. Private Banking and Wealth Management) at TRY80.81 billion, Treasury, Asset Liability Management and Other at TRY55.16 billion, Commercial and SME Banking at TRY53.65 billion, Corporate Banking at TRY18.51 billion, Other Domestic Operations at TRY13.83 billion, and Other Foreign Operations at TRY5.21 billion.
Dividend Yield: 4.9%
Yapi ve Kredi Bankasi's dividend yield of 4.94% ranks it among the top 25% of Turkish dividend payers, with a low payout ratio of 24.5%, ensuring dividends are well covered by earnings. However, its dividend history has been volatile over the past decade, and a high level of non-performing loans (3%) raises concerns about financial stability. Recent earnings showed increased net interest income but decreased net income year-over-year, indicating mixed financial performance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DFM:DRC IBSE:AKCNS and IBSE:YKBNK.
