Top Middle Eastern Dividend Stocks For June 2025

The Middle Eastern markets have been buoyant, with Gulf shares rising as the Israel-Iran ceasefire holds and Dubai's benchmark index reaching a 17-year high. In such a promising economic climate, dividend stocks become particularly attractive for investors seeking steady income streams and potential capital appreciation.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 77 stocks from our Top Middle Eastern Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Riyad Bank (SASE:1010)

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

Overview: Riyad Bank offers banking and investment services in the Kingdom of Saudi Arabia, with a market capitalization of SAR84.01 billion.

Operations: Riyad Bank's revenue is primarily derived from its Corporate Banking segment at SAR8.55 billion, followed by Retail Banking at SAR4.22 billion, Treasury and Investment at SAR2.36 billion, and Riyad Capital at SAR1.01 billion.

Dividend Yield: 6.2%

Riyad Bank's dividend yield of 6.21% places it in the top 25% of Saudi Arabia's dividend payers, supported by a reasonable payout ratio of 54.1%. Despite past volatility in its dividend history, recent earnings growth and a low price-to-earnings ratio of 9.2x compared to the market average suggest potential value. First-quarter results showed net income rising to SAR 2.49 billion from SAR 2.07 billion, indicating robust financial performance supporting future dividends.

• Delve into the full analysis dividend report here for a deeper understanding of Riyad Bank.
• Upon reviewing our latest valuation report, Riyad Bank's share price might be too pessimistic.

Al Rajhi Banking and Investment (SASE:1120)

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

Overview: Al Rajhi Banking and Investment Corporation, along with its subsidiaries, offers banking and investment services both within Saudi Arabia and internationally, with a market cap of SAR378.80 billion.

Operations: Al Rajhi Banking and Investment Corporation generates revenue through its Retail Segment (SAR18.59 billion), Treasury Segment (SAR4.85 billion), Corporate Segment (SAR6.79 billion), and Investment Services, Brokerage and Other Segments (SAR1.58 billion).

Dividend Yield: 3%

Al Rajhi Banking and Investment's earnings growth of 23.7% over the past year supports its dividend payments, which are currently covered by a payout ratio of 53.8%. However, the bank has a history of volatile dividends over the past decade. Recent announcements confirmed cash dividends totaling SAR 10.84 billion for fiscal year 2024, but with a yield of only 3.01%, it lags behind top-tier dividend payers in Saudi Arabia despite its below-market price-to-earnings ratio of 19.3x.

• Navigate through the intricacies of Al Rajhi Banking and Investment with our comprehensive dividend report here.
• The analysis detailed in our Al Rajhi Banking and Investment valuation report hints at an inflated share price compared to its estimated value.

Alinma Retail REIT Fund (SASE:4345)

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

Overview: Alinma Retail REIT Fund is a real estate investment trust focused on retail properties, with a market cap of SAR 0.54 billion.

Operations: Alinma Retail REIT Fund generates revenue primarily from its real estate rental segment, amounting to SAR 187.74 million.

Dividend Yield: 6.9%

Alinma Retail REIT Fund's dividend payments have been volatile over its six-year history, though recent announcements confirmed a total distribution of SAR 0.32 per unit for 2024. Despite the instability, the dividends are well covered by earnings and cash flows with payout ratios of 46.9% and 46.8%, respectively. Trading significantly below estimated fair value, its yield of 6.87% places it among the top dividend payers in Saudi Arabia's market.

• Click here to discover the nuances of Alinma Retail REIT Fund with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Alinma Retail REIT Fund is trading beyond its estimated value.

Key Takeaways

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Contemplating Other Strategies?

• 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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