As most Gulf markets experience gains ahead of earnings announcements, investors are closely monitoring corporate performance and the impact of trade developments on market sentiment. In this climate, dividend stocks can offer a compelling option for those seeking stability and income, as they provide regular payouts that can be particularly appealing during periods of economic uncertainty.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)
7.60%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
7.47%
★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)
Overview: Saudi Telecom Company, along with its subsidiaries, offers telecommunications, information, media, and digital payment services both in Saudi Arabia and internationally, with a market cap of SAR239.37 billion.
Operations: Saudi Telecom Company's revenue segments include Saudi Telecom Company at SAR49.64 billion, Channels at SAR15.11 billion, Solutions at SAR12.06 billion, STC Bahrain BSC (C) at SAR1.93 billion, Kuwait Telecommunications Company (Stc Kuwait) at SAR4.11 billion, STC Bank at SAR1.26 billion, Center 3 at SAR1.91 billion, Advanced Technology and Cybersecurity Company (Sirar) at SAR0.73 billion, Gulf Digital Media Model Company LTD (Intigral) at SAR0.69 billion, Public Telecommunications Company (Specialized) at SAR0.37 billion, SCCC and Iot contributing smaller amounts of approximately SAR188 million and SAR301 million respectively.
Dividend Yield: 8.7%
Saudi Telecom's dividend profile shows a mixed outlook. While the company's dividends have been reliable and stable over the past decade, with recent increases, its high cash payout ratio of 257.9% indicates that dividends are not well covered by free cash flows. A special dividend of SAR 9.97 billion was announced for 2024, adding to its total distribution per share for the year at SAR 3.75. Despite this, sustainability concerns persist due to insufficient cash flow coverage despite strong earnings growth reflected in a net income increase to SAR 24.69 billion in 2024 from SAR 13.30 billion previously reported.
Overview: FMS Enterprises Migun Ltd manufactures and sells ballistic protection raw materials and products globally, with a market cap of ₪1.62 billion.
Operations: FMS Enterprises Migun Ltd generates revenue from its Aerospace & Defense segment, amounting to $128.07 million.
Dividend Yield: 6.7%
FMS Enterprises Migun's dividend profile is appealing due to its stable and growing payouts over nine years, with a current yield of 6.7% placing it in the top 25% of IL market dividend payers. The dividends are well-covered by both earnings (69.1%) and cash flows (68.4%), suggesting sustainability. Recent financial results show robust growth, with net income rising to US$43.38 million in 2024 from US$37.71 million the previous year, supporting continued dividend reliability.
Overview: Mizrahi Tefahot Bank Ltd. offers a variety of international, commercial, domestic, and personal banking services to individuals and businesses in Israel and abroad, with a market cap of ₪47.01 billion.
Operations: Mizrahi Tefahot Bank's revenue segments include Private Banking (₪79 million), Business Banking (₪2.58 billion), Small Businesses (₪2.60 billion), Commercial Banking (₪639 million), Households - Others (₪5.32 billion), Financial Management (₪607 million), and Households - Mortgages (₪2.39 billion).
Dividend Yield: 4.7%
Mizrahi Tefahot Bank's dividend profile is mixed, with a history of volatility and unreliability over the past decade. Despite this, dividends are well-covered by earnings, with a current payout ratio of 40% and forecasts indicating continued coverage. Recent financials show net income increased to ILS 5.46 billion in 2024 from ILS 4.91 billion in the prior year, supporting potential future stability in dividends despite historical fluctuations.
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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:7010 TASE:FBRT and TASE:MZTF.
