The Middle Eastern stock markets have recently experienced fluctuations, with Saudi stocks dipping due to profit-taking and broader weakness affecting UAE and Qatar indices. Despite these challenges, the region's potential reforms in foreign ownership rules suggest opportunities for investors seeking dividend stocks that can offer stability and income. In this context, identifying reliable dividend-paying companies becomes crucial as they can provide a steady income stream even amid market volatility.
Top 10 Dividend Stocks In The Middle East
| Name | Dividend Yield | Dividend Rating |
| Saudi Telecom (SASE:7010) | 9.77% | ★★★★★☆ |
| Saudi Awwal Bank (SASE:1060) | 6.30% | ★★★★★☆ |
| National General Insurance (P.J.S.C.) (DFM:NGI) | 7.38% | ★★★★★☆ |
| National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK) | 6.44% | ★★★★★☆ |
| Emirates NBD Bank PJSC (DFM:EMIRATESNBD) | 4.14% | ★★★★★☆ |
| Emaar Properties PJSC (DFM:EMAAR) | 7.46% | ★★★★★☆ |
| Delek Group (TASE:DLEKG) | 6.73% | ★★★★★☆ |
| Commercial Bank of Dubai PSC (DFM:CBD) | 5.18% | ★★★★★☆ |
| Arab National Bank (SASE:1080) | 5.42% | ★★★★★☆ |
| Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT) | 6.40% | ★★★★★☆ |
Click here to see the full list of 67 stocks from our Top Middle Eastern Dividend Stocks screener.
We're going to check out a few of the best picks from our screener tool.
Saudi Investment Bank (SASE:1030)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: The Saudi Investment Bank offers commercial and retail banking services to individuals, small to medium-sized businesses, and corporate and institutional customers in Saudi Arabia, with a market cap of SAR17.55 billion.
Operations: The Saudi Investment Bank's revenue segments are comprised of SAR1.49 billion from Retail Banking, SAR1.40 billion from Corporate Banking, SAR255.37 million from Asset Management and Brokerage, and SAR1.14 billion from Treasury and Investments (Including Business Partners).
Dividend Yield: 5.7%
Saudi Investment Bank's dividends are well-covered by earnings, with a current payout ratio of 27.9% and a forecasted 52.3% in three years. Despite an unstable dividend track record over the past decade, recent payments have increased, placing it among the top 25% of dividend payers in the Saudi Arabian market with a yield of 5.69%. Recent earnings show modest growth, supporting continued dividend sustainability despite past volatility.
- Take a closer look at Saudi Investment Bank's potential here in our dividend report.
- In light of our recent valuation report, it seems possible that Saudi Investment Bank is trading beyond its estimated value.
Banque Saudi Fransi (SASE:1050)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Banque Saudi Fransi offers banking and financial services to individuals and businesses both within Saudi Arabia and internationally, with a market cap of SAR43.64 billion.
Operations: Banque Saudi Fransi's revenue is primarily derived from Retail Banking (SAR5.12 billion), Corporate Banking (SAR4.81 billion), and Investment Banking & Brokerage (SAR612.48 million).
Dividend Yield: 6.2%
Banque Saudi Fransi's dividend yield is among the top 25% in the Saudi market at 6.24%, supported by a payout ratio of 56.1%. However, its dividends have been volatile over the past decade despite recent increases. The bank's earnings growth and favorable price-to-earnings ratio of 9.4x suggest good value relative to peers, yet investors should be cautious about historical dividend reliability and volatility when considering it for income-focused portfolios.
- Click here and access our complete dividend analysis report to understand the dynamics of Banque Saudi Fransi.
- Our valuation report unveils the possibility Banque Saudi Fransi's shares may be trading at a discount.
Ayalon Insurance (TASE:AYAL)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ayalon Insurance Company Ltd, with a market cap of ₪1.66 billion, operates through its subsidiaries to offer a range of insurance products in Israel.
Operations: Ayalon Insurance Company Ltd generates revenue from various segments, including Health (₪638.15 million), General Insurance - Compulsory Vehicle Insurance (₪335.99 million), General Insurance - Property Branches and Others (₪424.26 million), General Insurance - Automobile Property Insurance (₪704.65 million), and Life Insurance and Long-Term Savings - Life Insurance (₪1.19 billion).
Dividend Yield: 7.9%
Ayalon Insurance's dividend yield is in the top 25% of the Israeli market at 7.87%, with a payout ratio of 30.9%, indicating strong earnings coverage. Despite being new to dividends, recent affirmations and inclusion in the S&P Global BMI Index highlight its growing profile. The company's recent private placement raised NIS 150.18 million, potentially supporting future stability, though its share price remains volatile over the past three months, warranting investor caution on reliability and growth prospects.
- Delve into the full analysis dividend report here for a deeper understanding of Ayalon Insurance.
- The valuation report we've compiled suggests that Ayalon Insurance's current price could be quite moderate.
Summing It All Up
- Click here to access our complete index of 67 Top Middle Eastern Dividend Stocks.
- Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Looking For Alternative Opportunities?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Ayalon Insurance might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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