As Middle Eastern markets show signs of resilience with most Gulf indices ending in positive territory amid hopes for U.S. tariff relief, investors are closely monitoring key economic indicators and geopolitical developments that could influence market dynamics. In this environment, dividend stocks remain an attractive option for those seeking steady income and potential long-term growth, as they often provide a buffer against market volatility while benefiting from the region's robust economic activities.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Peninsula Group (TASE:PEN)
6.59%
★★★★★★
Emaar Properties PJSC (DFM:EMAAR)
7.22%
★★★★★☆
Saudi Telecom (SASE:7010)
4.80%
★★★★★☆
Delek Group (TASE:DLEKG)
8.10%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
Overview: Mashreqbank PSC offers a range of banking and financial services to individuals and small businesses, with a market capitalization of AED52.96 billion.
Operations: Mashreqbank PSC's revenue segments include Retail at AED4.26 billion, Wholesale Banking at AED4.78 billion, Insurance & Others at AED3.22 billion, and Treasury and Capital Markets at AED1.15 billion.
Dividend Yield: 8%
Mashreqbank PSC offers an attractive dividend yield of 7.99%, placing it in the top 25% of dividend payers in the AE market. Despite a volatile dividend history over the past decade, its dividends are well-covered by earnings with a current payout ratio of 47.5%, expected to remain sustainable at 51.2% in three years. Recent financial results show an increase in net income, supporting its capacity for future payouts, though earnings are forecasted to decline annually by 8.7%.
Overview: Panora Gayrimenkul Yatirim Ortakligi A.S. operates in the real estate investment sector with a market capitalization of TRY5.52 billion.
Operations: Panora Gayrimenkul Yatirim Ortakligi A.S. generates revenue primarily from its REIT - Commercial segment, amounting to TRY574.41 million.
Dividend Yield: 4.5%
Panora Gayrimenkul Yatirim Ortakligi offers a dividend yield of 4.51%, ranking in the top 25% of TR market dividend payers. Despite an unstable and unreliable dividend history over the past decade, its dividends are well-covered by earnings and cash flows with payout ratios of 27% and 26.5%, respectively. Earnings grew significantly by 44.7% last year, yet non-cash earnings raise concerns about quality, impacting long-term sustainability despite recent growth in dividends.
Overview: Gan Shmuel Foods Ltd. operates in Israel, focusing on the production, marketing, and sale of citrus fruit, tomato, and other non-citrus fruit products with a market cap of ₪470.24 million.
Operations: Gan Shmuel Foods Ltd. generates its revenue from two main segments: Retailer, contributing $49.57 million, and Industrial, accounting for $256.79 million.
Dividend Yield: 5.9%
Gan Shmuel Foods offers a dividend yield of 5.88%, placing it in the top quartile of IL market dividend payers. However, its dividends have been volatile and declining over the past decade, raising concerns about reliability. Despite this, dividends are well-covered by earnings and cash flows with low payout ratios of 24.9% and 24.5%, respectively. The stock trades significantly below estimated fair value, but sustainability issues persist due to its unstable dividend history despite recent 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 DFM:MASQ IBSE:PAGYO and TASE:GSFI.
