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Top Emirati (ADX) Dividend Stocks
UPDATED Jun 27, 2022
What are the best Emirati (ADX) Dividend Stocks?
According to our Simply Wall St analysis these are the best Emirati dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
4 companies meet this criteria in the Emirati market
Dubai Investments PJSC, together with its subsidiaries, engages in property, investment, manufacturing, contracting, and services businesses in the United Arab Emirates and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: DIC's dividend (5.43%) is low compared to the top 25% of dividend payers in the AE market (5.68%).
Future Dividend Coverage
Rewards
Trading at 8.5% below our estimate of its fair value
Earnings are forecast to grow 12.04% per year
Risks
No risks detected for DIC from our risks checks.
Abu Dhabi Islamic Bank PJSC provides banking, financing, and investing services in the United Arab Emirates and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: ADIB's dividend (4.18%) is low compared to the top 25% of dividend payers in the AE market (5.68%).
Stable Dividend
Rewards
Price-To-Earnings ratio (12.4x) is below the AE market (15.3x)
Earnings are forecast to grow 12.6% per year
Risks
High level of non-cash earnings
Aldar Properties PJSC, together with its subsidiaries, operates as a real estate developer in the United Arab Emirates.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: ALDAR's dividend (3.31%) is low compared to the top 25% of dividend payers in the AE market (5.68%).
Future Dividend Coverage
Rewards
Trading at 29.5% below our estimate of its fair value
Earnings are forecast to grow 9.88% per year
Risks
No risks detected for ALDAR from our risks checks.
Dubai Islamic Bank P.J.S.C., together with its subsidiaries, engages in the corporate, retail, and investment banking activities in the United Arab Emirates and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: DIB's dividend (4.35%) is low compared to the top 25% of dividend payers in the AE market (5.68%).
Stable Dividend
Rewards
Trading at 24.3% below our estimate of its fair value
Earnings are forecast to grow 9.4% per year
Earnings grew by 65.2% over the past year
Risks
No risks detected for DIB from our risks checks.