3 Middle Eastern Dividend Stocks Yielding At Least 5.5%

As major Gulf markets navigate a complex landscape shaped by geopolitical tensions and the Federal Reserve's monetary policy outlook, investors are keenly observing opportunities within the region. In such an environment, dividend stocks offering yields of at least 5.5% can provide a stable income stream, making them attractive for those looking to balance risk with consistent returns.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 64 stocks from our Top Middle Eastern Dividend Stocks screener.

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

National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)

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

Overview: The National Bank of Ras Al-Khaimah (P.S.C.) offers retail, Islamic, and commercial banking products and services to individuals and businesses in the United Arab Emirates, with a market cap of AED13.68 billion.

Operations: The National Bank of Ras Al-Khaimah (P.S.C.) generates revenue through its key segments: Retail Banking (AED1.14 billion), Business Banking (AED1.75 billion), and Wholesale Banking (AED1.20 billion).

Dividend Yield: 7.4%

The National Bank of Ras Al-Khaimah (P.S.C.) recently approved a significant cash dividend of AED 1.01 billion, representing 50% of its share capital, highlighting its commitment to rewarding shareholders. Despite a history of volatile dividends, the current payout is well-covered by earnings with a payout ratio around 48.5%. The bank's dividend yield ranks in the top quartile within the AE market. However, investors should note past unreliability and high non-performing loans at 2.2%.

• Navigate through the intricacies of National Bank of Ras Al-Khaimah (P.S.C.) with our comprehensive dividend report here.
• According our valuation report, there's an indication that National Bank of Ras Al-Khaimah (P.S.C.)'s share price might be on the cheaper side.

Saudi Awwal Bank (SASE:1060)

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

Overview: Saudi Awwal Bank, with a market cap of SAR74.18 billion, offers a range of banking and financial services through its subsidiaries in the Kingdom of Saudi Arabia.

Operations: Saudi Awwal Bank's revenue is primarily derived from its Corporate and Institutional Banking segment (SAR7.17 billion), followed by Wealth & Personal Banking (SAR3.92 billion), Treasury (SAR1.93 billion), and Capital Markets (SAR445.67 million).

Dividend Yield: 5.6%

Saudi Awwal Bank's recent earnings report shows a strong net income of SAR 8.07 billion for 2024, with dividends covered by a reasonable payout ratio of 52.9%. Despite past volatility in dividend payments, the bank's dividend yield is among the top quartile in Saudi Arabia at 5.56%. Strategic alliances like the collaboration with Swvl Holdings enhance operational efficiency and connectivity, potentially supporting future growth and stability in dividend payouts.

• Click here to discover the nuances of Saudi Awwal Bank with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Saudi Awwal Bank's current price could be quite moderate.

Arab National Bank (SASE:1080)

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

Overview: Arab National Bank offers a range of banking products and services across Saudi Arabia, the GCC, and various international markets, with a market cap of SAR44.44 billion.

Operations: Arab National Bank generates revenue through its key segments: Treasury (SAR350.66 million), Retail Banking (SAR2 billion), Corporate Banking (SAR6.61 billion), and Investment and Brokerage Services (SAR480.10 million).

Dividend Yield: 5.8%

Arab National Bank's dividend yield of 5.85% places it in the top 25% of Saudi Arabian dividend payers, supported by a reasonable payout ratio of 52.4%. Despite historical volatility, dividends have grown over the past decade. Recent earnings showed net income rising to SAR 4.97 billion from SAR 4.07 billion, indicating strong financial performance. The bank also completed a SAR 3.35 billion fixed-income offering, potentially strengthening its capital structure and supporting future dividend sustainability.

• Unlock comprehensive insights into our analysis of Arab National Bank stock in this dividend report.
• Our valuation report unveils the possibility Arab National Bank's shares may be trading at a discount.

Seize The Opportunity

• Reveal the 64 hidden gems among our Top Middle Eastern Dividend Stocks screener with a single click here.
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Ready To Venture Into Other Investment Styles?

• 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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