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Top Saudi Arabian (Tadawul) Dividend Stocks
UPDATED Jun 28, 2022
What are the best Saudi Arabian (Tadawul) Dividend Stocks?
According to our Simply Wall St analysis these are the best Saudi Arabian 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.
3 companies meet this criteria in the Saudi Arabian market
Almarai Company, together with its subsidiaries, operates as an integrated consumer food and beverage company in Saudi Arabia, Egypt, Jordan, and other Gulf Cooperation Council countries.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: 2280's dividend (1.95%) is low compared to the top 25% of dividend payers in the SA market (4.42%).
Rewards
Trading at 25.2% below our estimate of its fair value
Earnings are forecast to grow 12.88% per year
Risks
Has a high level of debt
Saudi Electricity Company engages in the generation, transmission, and distribution of electricity to governmental, industrial, agricultural, commercial, and residential consumers in the Kingdom of Saudi Arabia.
Dividend Criteria
Stable Dividend
Earnings Coverage
Future Dividend Coverage
Notable Dividend
High Dividend: 5110's dividend (3%) is low compared to the top 25% of dividend payers in the SA market (4.42%).
Growing Dividend
Rewards
Trading at 32.8% below our estimate of its fair value
Earnings are forecast to grow 20.45% per year
Earnings grew by 51.2% over the past year
Risks
No risks detected for 5110 from our risks checks.
Bank AlJazira provides a range of Shari’ah compliant banking products and services for individuals, corporates, small to medium sized businesses, and institutions in the Kingdom of Saudi Arabia.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: 1020's dividend (3.08%) is low compared to the top 25% of dividend payers in the SA market (4.42%).
Stable Dividend
Rewards
Price-To-Earnings ratio (18.6x) is below the SA market (25.5x)
Earnings are forecast to grow 18.78% per year
Earnings grew by 475.9% over the past year
Risks
High level of non-cash earnings
Volatile share price over the past 3 months