The Middle Eastern stock markets have recently faced a downturn, mirroring a global trend as most Gulf bourses struggle under the weight of concerns regarding high valuations. This challenging environment prompts investors to seek out stable options; one such avenue is dividend stocks, which can provide both stability and potential income during periods of market volatility.
Among notable dividend-paying stocks in the region, several have garnered attention for their yields and ratings. Turkiye Garanti Bankasi (IBSE:GARAN) offers a dividend yield of 3.25%, earning a rating of ★★★★★☆. Saudi Telecom (SASE:7010) stands out with a significant yield of 9.41%, also rated ★★★★★☆. Other strong contenders include Saudi Awwal Bank (SASE:1060) at 6.33%, Riyad Bank (SASE:1010) at 6.72%, and National General Insurance (P.J.S.C.) (DFM:NGI) with 7.60%, all holding excellent ratings.
Furthermore, Emaar Properties PJSC (DFM:EMAAR) provides a solid yield of 7.30%, while Computer Direct Group (TASE:CMDR) matches this with a 7.60% yield. The Commercial Bank of Dubai PSC (DFM:CBD) is also noteworthy, offering a 5.37% yield paired with a ★★★★★☆ rating. Other candidates include Arab National Bank (SASE:1080) yielding 5.53% and Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT) at 5.47%, both rated ★★★★★☆.
Among these, the Commercial Bank of Dubai PSC has been highlighted for its stable dividend yield of 5.37%, although it trails behind other top performers in the market. This bank has shown consistent dividend growth over the past decade thanks to a low payout ratio of 46.7%. Despite facing challenges, such as a high level of bad loans at 4%, recent financial reports indicate a strong performance. Both net income and earnings per share have risen year-over-year, suggesting robust coverage for future dividends.
Another strong contender, Thob Al Aseel Company, operates in fabric and ready-made garment sectors, carrying a market cap of SAR1.41 billion. It yields 5.68%, placing it in the top quartile of Saudi Arabian dividend payers, albeit with fluctuating dividends over recent years. The company’s high payout ratio of 89.1% is supported by cash flows, showing some potential for future stability. Despite a slight decline in sales, their net income has seen modest growth.
NewMed Energy – Limited Partnership is positioned in the oil and gas sector, with a market capitalization of ₪20.39 billion. It offers a dividend yield of 3.99%. Although this may not place it among the highest echelons in Israel, earnings cover its dividends effectively with a payout ratio of 79.6%. The company’s financial stability is further bolstered by a price-to-earnings ratio below the market average, coupled with promising revenue potential stemming from a substantial natural gas deal with Egypt.
As the market continues to navigate uncertainties, these dividend stocks represent a more resilient path for investors. They provide a blend of reliable income and potential growth, appealing to those looking to weather the storm of volatile market conditions. For a broader view of dividend opportunities, a list of 66 stocks from the Top Middle Eastern Dividend Stocks screener can be explored.
