Amidst the backdrop of rising oil prices and optimistic trade negotiations between the U.S. and China, most Gulf markets have experienced gains, reflecting a positive sentiment in the Middle Eastern financial landscape. In this environment, dividend stocks stand out as attractive options for investors seeking stable returns, with their potential to provide consistent income being particularly appealing during times of market volatility.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)
7.87%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
7.58%
★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)
Overview: Saudi Awwal Bank, with a market cap of SAR72.95 billion, operates in the Kingdom of Saudi Arabia offering a range of banking and financial services through its subsidiaries.
Operations: Saudi Awwal Bank's revenue is primarily derived from its Corporate and Institutional Banking segment at SAR7.17 billion, followed by Wealth & Personal Banking at SAR3.92 billion, Treasury operations contributing SAR1.93 billion, and Capital Markets generating SAR445.67 million.
Dividend Yield: 5.6%
Saudi Awwal Bank reported strong earnings with a net income of SAR 8.07 billion for 2024, up from SAR 7 billion the previous year, indicating solid financial health. The bank's dividend yield is in the top 25% of Saudi Arabian market payers at 5.65%, supported by a sustainable payout ratio of 52.9%. However, its dividends have been volatile and unreliable over the past decade despite consistent earnings growth.
Overview: Alinma Retail REIT Fund is a real estate investment fund with a market cap of SAR 551.06 million.
Operations: The fund generates revenue from its real estate rental activities, amounting to SAR 187.74 million.
Dividend Yield: 6.8%
Alinma Retail REIT Fund's dividend yield of 6.81% ranks in the top 25% of Saudi Arabian market payers, supported by a sustainable payout ratio of 46.9%. Despite recent profitability and increased sales to SAR 79.84 million, its dividends have been volatile over six years, with significant fluctuations in payments. Recent distributions totaled SAR 0.32 per unit for the year ending December 2024, reflecting ongoing efforts to maintain shareholder returns amidst an unstable dividend history.
Overview: Computer Direct Group Ltd. operates in the computing and software industry in Israel, with a market capitalization of ₪1.34 billion.
Operations: Computer Direct Group Ltd. generates revenue primarily from three segments: Infrastructure and Computing (₪1.22 billion), Outsourcing of Business Processes and Technology Support Centers (₪316.01 million), and Technological Solutions and Services, Management Consulting, and Value-Added Services (₪2.49 billion).
Dividend Yield: 9.7%
Computer Direct Group's dividend yield of 9.73% is among the top 25% in the Israeli market, but its sustainability is questionable due to a high payout ratio of 150.1%, indicating dividends are not well covered by earnings. Despite this, cash flows cover dividends with a low cash payout ratio of 33.8%. The company's recent earnings report showed increased sales to ILS 4 billion and net income growth, yet dividend payments have been historically volatile and unreliable over the past decade.
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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:1060 SASE:4345 and TASE:CMDR.
