June 2025's Middle Eastern Dividend Stocks To Watch

In the midst of geopolitical tensions, Gulf markets have shown resilience, with indices rebounding as investor sentiment improves. This environment highlights the importance of selecting dividend stocks that not only offer reliable income but also demonstrate stability amid market fluctuations.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 74 stocks from our Top Middle Eastern Dividend Stocks screener.

We'll examine a selection from our screener results.

Ayalon Insurance (TASE:AYAL)

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

Overview: Ayalon Insurance Company Ltd, with a market cap of ₪1.44 billion, operates in Israel through its subsidiaries offering a range of insurance products.

Operations: Ayalon Insurance Company Ltd generates revenue through its subsidiaries by offering a diverse array of insurance products in Israel.

Dividend Yield: 8.3%

Ayalon Insurance's recent financial performance shows robust growth, with net income for Q1 2025 reaching ILS 56.72 million, nearly doubling from the previous year. The company's dividend yield is notable at 8.31%, placing it in the top quartile of Israeli dividend payers. Dividends are well-covered by both earnings and cash flows, with payout ratios of 28.2% and 34.4%, respectively; however, given their recent initiation, stability and growth remain uncertain factors for investors to consider.

• Click here and access our complete dividend analysis report to understand the dynamics of Ayalon Insurance.
• The valuation report we've compiled suggests that Ayalon Insurance's current price could be quite moderate.

Mendelson Infrastructures & Industries (TASE:MNIN)

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

Overview: Mendelson Infrastructures & Industries Ltd. (TASE:MNIN) operates in the infrastructure and industrial sectors, with a market cap of ₪612.53 million.

Operations: Mendelson Infrastructures & Industries Ltd. generates revenue from three primary segments: Infrastructure (₪290.91 million), Construction and Plumbing (₪481.04 million), and Elevators and Air Conditioning (₪266.40 million).

Dividend Yield: 3.9%

Mendelson Infrastructures & Industries reported a modest rise in Q1 2025 sales, but net income declined. The company announced an annual dividend of ILS 0.6058 per share, with dividends covered by earnings and cash flows, reflecting payout ratios of 51.8% and 26.5%, respectively. Despite past volatility in dividend payments, recent increases suggest potential growth; however, its dividend yield remains below top-tier levels in the Israeli market amidst high share price volatility.

• Dive into the specifics of Mendelson Infrastructures & Industries here with our thorough dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Mendelson Infrastructures & Industries shares in the market.

Matrix IT (TASE:MTRX)

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

Overview: Matrix IT Ltd., along with its subsidiaries, offers information technology solutions and services across Israel, the United States, Europe, and other international markets with a market cap of ₪6.70 billion.

Operations: Matrix IT Ltd.'s revenue segments include Cloud and Computing Infrastructure (₪1.54 billion), Sales, Marketing and Support of Software Products (₪447.92 million), Information Technology Solutions and Services in the United States (₪451.09 million), and Information Technology Solutions and Services, Consulting, and Management in Israel including Training and Implementation (₪3.43 billion).

Dividend Yield: 3.4%

Matrix IT's dividends have been stable and growing over the past decade, supported by a sustainable earnings payout ratio of 75% and a low cash payout ratio of 38.1%. Although its dividend yield of 3.38% is below the top tier in Israel, it remains attractive due to its reliability. Recent Q1 2025 results showed increased sales to ILS 1.55 billion and net income rising to ILS 76 million, indicating solid financial performance supporting future payouts.

• Unlock comprehensive insights into our analysis of Matrix IT stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Matrix IT is priced higher than what may be justified by its financials.

Turning Ideas Into Actions

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Ready For A Different Approach?

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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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