Middle Eastern Dividend Stocks Featuring Three Top Picks
editorial-team@simplywallst.com (Simply Wall St)
4 min read
The Middle Eastern stock markets have recently experienced notable gains, with Saudi Arabia's bourse leading the way following a temporary pause on tariffs by the U.S., which has provided a boost to investor sentiment across the region. In this dynamic environment, dividend stocks can offer investors a degree of stability and income potential, making them an attractive option amid fluctuating market conditions.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)
8.30%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
8.08%
★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)
Overview: Abu Dhabi Islamic Bank PJSC offers banking, financing, and investing services across the United Arab Emirates, the Middle East, and internationally, with a market cap of AED58.11 billion.
Operations: Abu Dhabi Islamic Bank PJSC's revenue is primarily derived from its Global Retail Banking segment at AED5.28 billion, followed by Global Wholesale Banking at AED1.67 billion, Associates & Subsidiaries at AED1.43 billion, Private Banking at AED243.41 million, Real Estate at AED166.53 million, and Treasury operations contributing AED163.80 million.
Dividend Yield: 5.2%
Abu Dhabi Islamic Bank PJSC offers a dividend payout ratio of 55.9%, indicating dividends are well-covered by earnings, with future coverage forecasted at 53.6%. Despite a low price-to-earnings ratio of 10.7x compared to the AE market, its dividend yield of 5.21% is below top-tier levels. The bank's dividends have been volatile and unreliable over the past decade, though they show growth potential. Recent earnings reports highlight strong annual net income growth to AED 6.1 billion for 2024.
Overview: National Bank of Umm Al-Qaiwain (PSC) provides retail and corporate banking services in the United Arab Emirates and has a market cap of AED4.32 billion.
Operations: National Bank of Umm Al-Qaiwain (PSC) generates revenue primarily from Treasury and Investments, amounting to AED375.91 million, and Retail and Corporate Banking, contributing AED284.49 million.
Dividend Yield: 8.3%
National Bank of Umm Al-Qaiwain (PSC) maintains a reasonable payout ratio of 71.1%, suggesting dividends are currently covered by earnings, although past payments have been volatile and unreliable. The bank's dividend yield stands at 8.33%, placing it among the top 25% in the AE market. Recent approval for a cash dividend of AED 360 million highlights its commitment to shareholder returns despite high bad loans at 4% and low allowance coverage at 58%.
Overview: Nuh Çimento Sanayi A.S. is a Turkish company that produces and sells cement, clinker, and mineral additives, with a market cap of TRY37.85 billion.
Operations: Nuh Çimento Sanayi A.S.'s revenue is primarily derived from its Construction and Construction Materials segment, amounting to TRY17.59 billion, with an additional contribution of TRY70.94 million from the Energy segment.
Dividend Yield: 3.5%
Nuh Çimento Sanayi's dividend yield of 3.53% is among the top 25% in Turkey, with dividends covered by earnings and cash flows, reflected in payout ratios of 80.3% and 72.4%, respectively. However, its dividend history has been volatile and unreliable over the past decade. Recent earnings show a decline, with sales at TRY 15.48 billion and net income at TRY 1.83 billion for 2024, compared to previous higher figures.
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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 ADX:ADIB ADX:NBQ and IBSE:NUHCM.
