3 Middle Eastern Dividend Stocks Yielding Up To 7.9%

As Gulf shares rise amid a holding ceasefire between Israel and Iran, Dubai's stock index has reached a 17-year high, reflecting the region's buoyant market sentiment. In this environment of stability and growth, dividend stocks become particularly attractive for investors seeking steady income streams while capitalizing on favorable market conditions.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 76 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.

Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)

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

Overview: Anadolu Hayat Emeklilik Anonim Sirketi offers individual and group insurance and reinsurance services in life, retirement, and personal accident sectors in Turkey, with a market cap of TRY32.79 billion.

Operations: Anadolu Hayat Emeklilik Anonim Sirketi generates revenue through its individual and group insurance and reinsurance services in the life, retirement, and personal accident sectors within Turkey.

Dividend Yield: 7.6%

Anadolu Hayat Emeklilik Anonim Sirketi offers a compelling dividend yield of 7.62%, ranking in the top 25% of Turkey's market. Despite an unstable and volatile dividend history over the past decade, recent dividend growth is notable. The company's dividends are sustainably covered by earnings (56.6% payout ratio) and cash flows (36.5% cash payout ratio). With a low price-to-earnings ratio of 7.4x compared to the market, it presents good value for investors seeking income opportunities in the Middle East region.

• Dive into the specifics of Anadolu Hayat Emeklilik Anonim Sirketi here with our thorough dividend report.
• Upon reviewing our latest valuation report, Anadolu Hayat Emeklilik Anonim Sirketi's share price might be too pessimistic.

Saudi Awwal Bank (SASE:1060)

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

Overview: Saudi Awwal Bank, operating in the Kingdom of Saudi Arabia, offers a range of banking and financial services through its subsidiaries and has a market cap of SAR67.40 billion.

Operations: Saudi Awwal Bank generates its revenue from several key segments, including Treasury (SAR1.91 billion), Capital Markets (SAR439.67 million), Wealth & Personal Banking (SAR4.06 billion), and Corporate and Institutional Banking (SAR7.15 billion).

Dividend Yield: 6%

Saudi Awwal Bank offers a dividend yield of 6.02%, placing it in the top 25% of dividend payers in Saudi Arabia. Despite a history of volatility, dividends are currently covered by earnings with a payout ratio of 52.7%. The recent issuance of USD 650 million Green Sukuk could support future financial stability. Its price-to-earnings ratio is attractively low at 8.8x, suggesting good value relative to the market and peers.

• Unlock comprehensive insights into our analysis of Saudi Awwal Bank stock in this dividend report.
• According our valuation report, there's an indication that Saudi Awwal Bank's share price might be on the cheaper side.

Computer Direct Group (TASE:CMDR)

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

Overview: Computer Direct Group Ltd. operates in the computing and software industry in Israel, with a market cap of ₪1.64 billion.

Operations: Computer Direct Group Ltd.'s revenue is primarily derived from three segments: Infrastructure and Computing (₪1.28 billion), Outsourcing of Business Processes and Technology Support Centers (₪326.89 million), and Technological Solutions and Services, Management Consulting, and Value-Added Services (₪2.57 billion).

Dividend Yield: 8%

Computer Direct Group's dividend yield of 7.96% ranks in the top 25% of Israeli dividend payers, yet its sustainability is questionable due to a high payout ratio of 148.3%, indicating dividends aren't covered by earnings. However, cash flows cover dividends well with a cash payout ratio of 31.5%. Although dividends have grown over the past decade, they remain volatile and unreliable. Recent earnings growth shows improvement, with Q1 sales at ILS 1.13 billion and net income rising to ILS 22.17 million year-over-year.

• Take a closer look at Computer Direct Group's potential here in our dividend report.
• Our expertly prepared valuation report Computer Direct Group implies its share price may be lower than expected.

Seize The Opportunity

• Get an in-depth perspective on all 76 Top Middle Eastern Dividend Stocks by using our screener here.
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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.

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