Middle Eastern Dividend Stocks To Enhance Your Investment Strategy

As most Gulf markets continue to rise, with Dubai's main index reaching its highest level in over 17 years, investors are increasingly eyeing opportunities within the Middle East's dynamic economic landscape. In such a robust market environment, dividend stocks can offer a compelling strategy for those seeking stable income and potential growth.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 72 stocks from our Top Middle Eastern Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

EIS Eczacibasi Ilaç Sinai ve Finansal Yatirimlar Sanayi ve Ticaret (IBSE:ECILC)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: EIS Eczacibasi Ilaç, Sinai ve Finansal Yatirimlar Sanayi ve Ticaret A.S. operates in the health and real estate development sectors both in Turkey and internationally, with a market capitalization of TRY32.10 billion.

Operations: EIS Eczacibasi Ilaç, Sinai ve Finansal Yatirimlar Sanayi ve Ticaret A.S. generates revenue through its operations in the health and real estate development sectors across Turkey and international markets.

Dividend Yield: 3.7%

EIS Eczacibasi Ilaç's dividend payments have grown over the past decade, with a recent annual increase to TRY 1.75 per share. However, dividends have been volatile and not consistently covered by free cash flows, as evidenced by a high cash payout ratio of 94%. Despite a competitive dividend yield of 3.74%, profitability challenges persist with declining profit margins and fluctuating earnings, impacting long-term dividend sustainability.

• Delve into the full analysis dividend report here for a deeper understanding of EIS Eczacibasi Ilaç Sinai ve Finansal Yatirimlar Sanayi ve Ticaret.
• Insights from our recent valuation report point to the potential overvaluation of EIS Eczacibasi Ilaç Sinai ve Finansal Yatirimlar Sanayi ve Ticaret shares in the market.

Turkiye Garanti Bankasi (IBSE:GARAN)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Turkiye Garanti Bankasi A.S. offers a range of banking products and services in Turkey, with a market cap of TRY485.94 billion.

Operations: Turkiye Garanti Bankasi A.S. generates revenue from diverse banking products and services in Turkey.

Dividend Yield: 3.8%

Turkiye Garanti Bankasi's dividends are well-covered by earnings, with a low payout ratio of 20.2%, and projected to remain sustainable over the next three years. Despite a high level of bad loans at 2.1%, its dividend yield is among the top in Turkey's market, though past payments have been volatile and unreliable. The stock trades below estimated fair value, with analysts expecting price growth, supported by increasing earnings reported at TRY 25.10 billion for Q1 2025.

• Click to explore a detailed breakdown of our findings in Turkiye Garanti Bankasi's dividend report.
• The analysis detailed in our Turkiye Garanti Bankasi valuation report hints at an deflated share price compared to its estimated value.

Yapi ve Kredi Bankasi (IBSE:YKBNK)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Yapi ve Kredi Bankasi A.S. operates as a commercial bank offering a range of financial products and services in Turkey and internationally, with a market cap of TRY232.97 billion.

Operations: Yapi ve Kredi Bankasi A.S. generates its revenue from several segments, including Retail Banking (Incl. Private Banking and Wealth Management) at TRY86.38 billion, Treasury, Asset Liability Management and Other at TRY61.59 billion, Commercial and SME Banking at TRY54.40 billion, Corporate Banking at TRY18.85 billion, Other Domestic Operations at TRY14.79 billion, and Other Foreign Operations at TRY5.52 billion.

Dividend Yield: 4.4%

Yapi ve Kredi Bankasi's dividends are well-supported by a low payout ratio of 24.5%, ensuring sustainability despite past volatility and unreliability in payments. The bank's dividend yield is among the top 25% in Turkey, although it faces challenges with a high bad loans ratio of 3.2%. Recent earnings show an increase in net interest income to TRY 29.87 billion for Q1 2025, indicating potential for future growth amidst current market conditions.

• Get an in-depth perspective on Yapi ve Kredi Bankasi's performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that Yapi ve Kredi Bankasi is priced higher than what may be justified by its financials.

Make It Happen

• Delve into our full catalog of 72 Top Middle Eastern Dividend Stocks here.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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