3 Middle Eastern Dividend Stocks Yielding Up To 6.2%

As hopes for U.S. interest rate cuts and a ceasefire deal in Gaza buoy most Gulf markets, the Middle East is witnessing renewed investor confidence and potential economic transition. In this climate, dividend stocks become particularly appealing as they offer not only income but also stability amidst geopolitical shifts and monetary policy changes.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 67 stocks from our Top Middle Eastern Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Emirates Driving Company P.J.S.C (ADX:DRIVE)

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

Overview: Emirates Driving Company P.J.S.C., along with its subsidiaries, specializes in managing and developing motor vehicle driving training in the United Arab Emirates, with a market cap of AED3.47 billion.

Operations: Emirates Driving Company P.J.S.C. generates revenue primarily through its Car and Other Related Services segment, amounting to AED690.46 million.

Dividend Yield: 5.3%

Emirates Driving Company P.J.S.C. has shown earnings growth of 18.9% over the past year, with recent sales and net income increases indicating robust financial health. However, its dividend payments have been volatile over the past decade, with a current yield of 5.28%, which is lower than top-tier payers in the AE market. Despite this volatility, dividends are covered by both earnings (58.7%) and cash flows (61.5%), suggesting sustainability amid fluctuating payouts.

• Take a closer look at Emirates Driving Company P.J.S.C's potential here in our dividend report.
• Upon reviewing our latest valuation report, Emirates Driving Company P.J.S.C's share price might be too pessimistic.

Dubai Islamic Bank P.J.S.C (DFM:DIB)

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

Overview: Dubai Islamic Bank P.J.S.C. operates in corporate, retail, and investment banking both within the United Arab Emirates and internationally, with a market cap of AED69.31 billion.

Operations: Dubai Islamic Bank P.J.S.C. generates revenue through its Consumer Banking (AED4.43 billion), Corporate Banking (AED3.37 billion), Treasury (AED2.76 billion), and Real Estate Development (AED0.77 billion) segments.

Dividend Yield: 4.7%

Dubai Islamic Bank P.J.S.C.'s dividend payments are supported by a low payout ratio of 41.7%, indicating coverage by earnings, but have been volatile over the past decade. Although the dividend yield of 4.69% is below top-tier payers in the AE market, recent earnings growth and net income improvements suggest potential for future stability. However, high non-performing loans at 3.1% pose a risk to financial health and dividend reliability despite recent positive earnings results.

• Unlock comprehensive insights into our analysis of Dubai Islamic Bank P.J.S.C stock in this dividend report.
• Upon reviewing our latest valuation report, Dubai Islamic Bank P.J.S.C's share price might be too optimistic.

Suny Cellular Communication (TASE:SNCM)

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

Overview: Suny Cellular Communication Ltd operates by importing and marketing cell phones, accessories, and storage devices in Israel with a market cap of ₪350.18 million.

Operations: Suny Cellular Communication Ltd generates revenue primarily from the sale of cellular phones and accessories, totaling ₪994.25 million.

Dividend Yield: 6.3%

Suny Cellular Communication's dividend yield of 6.28% ranks in the top 25% of IL market payers, with earnings and cash flows covering payouts at ratios of 79.7% and 57.1%, respectively. However, dividends have been volatile over four years, lacking growth stability. Recent earnings reveal a decline in sales to ILS 228.73 million for Q2 and reduced net income to ILS 8.26 million, indicating potential challenges for future dividend sustainability amidst fluctuating financial performance.

• Navigate through the intricacies of Suny Cellular Communication with our comprehensive dividend report here.
• Our valuation report unveils the possibility Suny Cellular Communication's shares may be trading at a premium.

Taking Advantage

• Unlock our comprehensive list of 67 Top Middle Eastern Dividend Stocks by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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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