Middle Eastern Dividend Stocks To Watch In February 2025

As Middle Eastern markets navigate a mixed landscape marked by weak earnings in Saudi Arabia and gains in Dubai, investors are keenly observing the region's performance amid fluctuating oil prices and geopolitical developments. In this context, dividend stocks offer a compelling opportunity for those seeking steady income streams, particularly when companies demonstrate resilience through consistent payouts even during volatile periods.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 59 stocks from our Top Middle Eastern Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Emirates Insurance Company P.J.S.C (ADX:EIC)

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

Overview: Emirates Insurance Company P.J.S.C. operates in the general insurance and reinsurance sectors across the United Arab Emirates, the United States, and Europe, with a market cap of AED1.19 billion.

Operations: Emirates Insurance Company P.J.S.C. generates revenue through its investments, amounting to AED99.81 million, and underwriting activities, totaling AED2.16 billion.

Dividend Yield: 6.9%

Emirates Insurance Company P.J.S.C. offers a promising dividend yield of 6.92%, placing it in the top 25% of dividend payers in the AE market. While dividends have grown steadily over the past decade, they are not well covered by free cash flows, with a high cash payout ratio of 362.1%. However, earnings do cover dividends with a reasonable payout ratio of 68.9%, and its price-to-earnings ratio is favorable at 10x compared to the market average.

• Click to explore a detailed breakdown of our findings in Emirates Insurance Company P.J.S.C's dividend report.
• Upon reviewing our latest valuation report, Emirates Insurance Company P.J.S.C's share price might be too optimistic.

Dubai Insurance Company (P.S.C.) (DFM:DIN)

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

Overview: Dubai Insurance Company (P.S.C.) offers a range of insurance products for individuals and corporates in the United Arab Emirates, with a market cap of AED1.29 billion.

Operations: Dubai Insurance Company (P.S.C.) generates its revenue through a diverse portfolio of insurance products tailored for both individuals and corporate clients within the United Arab Emirates.

Dividend Yield: 5.4%

Dubai Insurance Company (P.S.C.) offers a stable dividend yield of 5.43%, supported by a reasonable earnings payout ratio of 53.6% and a low cash payout ratio of 25.4%. Although its dividend yield is below the top tier in the AE market, it has consistently grown over the past decade without volatility. The company's price-to-earnings ratio stands attractively at 9.8x, but recent earnings have decreased slightly to AED 132.3 million from AED 141.89 million last year, reflecting some pressure on profit margins and share liquidity remains an issue.

• Click here to discover the nuances of Dubai Insurance Company (P.S.C.) with our detailed analytical dividend report.
• Our comprehensive valuation report raises the possibility that Dubai Insurance Company (P.S.C.) is priced higher than what may be justified by its financials.

Yapi ve Kredi Bankasi (IBSE:YKBNK)

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

Overview: Yapi ve Kredi Bankasi A.S., along with its subsidiaries, offers commercial banking and financial products and services in Turkey and internationally, with a market cap of TRY247.33 billion.

Operations: Yapi ve Kredi Bankasi A.S. generates its revenue from several segments, including Retail Banking (Incl. Private Banking and Wealth Management) at TRY80.81 billion, Treasury, Asset Liability Management and Other at TRY55.16 billion, Commercial and SME Banking at TRY53.65 billion, Corporate Banking at TRY18.51 billion, Other Domestic Operations at TRY13.83 billion and Other Foreign Operations at TRY5.21 billion.

Dividend Yield: 4.1%

Yapi ve Kredi Bankasi's dividend yield of 4.13% places it in the top 25% of Turkish dividend payers, supported by a low payout ratio of 24.5%, ensuring coverage by earnings despite past volatility. The bank's price-to-earnings ratio is attractively low at 8.5x compared to the market average, but high non-performing loans at 3% pose a risk. Recent earnings showed a decline in net income to TRY 29 billion for the full year, indicating challenges ahead.

• Dive into the specifics of Yapi ve Kredi Bankasi here with our thorough dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Yapi ve Kredi Bankasi shares in the market.

Next Steps

• Navigate through the entire inventory of 59 Top Middle Eastern Dividend Stocks 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.
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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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