Amidst slow trading in major Gulf markets, influenced by concerns over U.S. tariff policies and their potential impact on global economic growth, investors are increasingly looking for stability through dividend stocks. In such uncertain market conditions, companies that consistently distribute dividends can offer a degree of reliability and income generation for investors seeking to navigate the current volatility.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)
7.46%
★★★★★☆
Arab National Bank (SASE:1080)
5.85%
★★★★★☆
Delek Group (TASE:DLEKG)
8.76%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
Overview: The Saudi Investment Bank offers commercial and retail banking services to individuals, small to medium-sized businesses, and corporate and institutional clients in Saudi Arabia, with a market cap of SAR17.78 billion.
Operations: The Saudi Investment Bank's revenue is primarily derived from Retail Banking (SAR1.55 billion), Corporate Banking (SAR1.32 billion), Asset Management and Brokerage (SAR234.50 million), and Treasury and Investments including Business Partners (SAR1.09 billion).
Dividend Yield: 5.1%
Saudi Investment Bank's dividend yield of 5.08% places it among the top 25% of dividend payers in Saudi Arabia, supported by a reasonable payout ratio of 52%, indicating dividends are currently covered by earnings. Despite this, the bank's dividend history has been volatile over the past decade, with inconsistent payments. Recent financial results show growth in net income to SAR 1.96 billion, suggesting potential for future stability if this trend continues.
Overview: Castro Model Ltd. operates in Israel, focusing on the retail sale of fashion products, home fashion, accessories, and cosmetics, with a market cap of ₪1.02 billion.
Operations: Castro Model Ltd.'s revenue is primarily derived from its apparel fashions segment at ₪1.45 billion, with additional contributions from fashion accessories in Israel at ₪540.23 million and care and cosmetics at ₪80.13 million.
Dividend Yield: 5.9%
Castro Model's dividend payments are well-supported by a payout ratio of 44.4% and a cash payout ratio of 32.4%, indicating solid coverage by earnings and cash flows. However, the dividend yield of 5.88% falls short compared to the top tier in Israel's market, and its track record over the past decade has been unreliable with volatility exceeding annual drops of 20%. Recent earnings show substantial growth with net income rising to ILS 135.4 million from ILS 42.52 million last year, potentially enhancing future dividend stability if sustained.
Overview: One Software Technologies Ltd offers software, hardware, and integration services with a market cap of ₪5.04 billion.
Operations: One Software Technologies Ltd generates revenue from three main segments: Infrastructure and Computing Solutions (₪1.22 billion), Outsourcing of Business Processes and Technological Support Centers (₪316.01 million), and Technological Solutions and Services, Management Consulting, and Value-Added Services (₪2.49 billion).
Dividend Yield: 3%
One Software Technologies' dividend sustainability is supported by a payout ratio of 65.9% and a cash payout ratio of 40.9%, indicating strong coverage by earnings and cash flows. Despite this, the dividend yield of 3.01% is lower than Israel's top market payers, and past payments have been volatile with an unstable track record over ten years. Recent financials show sales increased to ILS 4 billion, with net income rising to ILS 230.12 million, reflecting solid earnings growth.
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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 SASE:1030 TASE:CAST and TASE:ONE.
