Middle Eastern Dividend Stocks Arab National Bank And 2 More

As Gulf markets experience gains driven by robust corporate earnings, lingering concerns over tariffs and U.S. monetary policy continue to cast shadows on the economic landscape. In this environment, dividend stocks offer investors a potential avenue for stability and income, with Arab National Bank among those standing out in the Middle Eastern market.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 64 stocks from our Top Middle Eastern Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Arab National Bank (SASE:1080)

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

Overview: Arab National Bank offers a range of banking products and services across Saudi Arabia, other GCC countries, the Middle East, Europe, North America, Latin America, Southeast Asia, and internationally with a market cap of SAR44.36 billion.

Operations: Arab National Bank's revenue is primarily derived from Corporate Banking (SAR6.61 billion), Retail Banking (SAR2.00 billion), Treasury (SAR350.66 million), and Investment and Brokerage Services (SAR480.10 million).

Dividend Yield: 5.8%

Arab National Bank offers a competitive dividend yield of 5.8%, placing it in the top 25% of dividend payers in the Saudi Arabian market. Despite its attractive yield, the bank's dividend history is marked by volatility, with past payments showing instability. However, its current payout ratio of 52.4% suggests dividends are well-covered by earnings, and this coverage is projected to remain stable over the next three years. The bank's price-to-earnings ratio of 9x indicates potential value compared to the broader market average. Recent meetings have authorized interim dividends for fiscal year 2025, highlighting ongoing shareholder returns focus despite historical inconsistencies in payment stability.

• Get an in-depth perspective on Arab National Bank's performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that Arab National Bank is priced higher than what may be justified by its financials.

Saudi National Bank (SASE:1180)

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

Overview: The Saudi National Bank, with a market cap of SAR207.48 billion, operates through its subsidiaries to offer banking and investment management services both in the Kingdom of Saudi Arabia and internationally.

Operations: The Saudi National Bank generates revenue through various segments, including Retail (SAR15.67 billion), Wholesale (SAR15.42 billion), International (SAR1.65 billion), and Capital Market (SAR2.28 billion).

Dividend Yield: 5.7%

Saudi National Bank's dividend yield of 5.67% ranks it among the top 25% in the Saudi Arabian market. Despite this, its dividend history has been unreliable and volatile over the past decade, though recent earnings growth suggests improved stability. The bank maintains a reasonable payout ratio of 55.3%, indicating dividends are currently covered by earnings and forecasted to remain so in three years. Recent earnings reports show strong performance with net income rising to SAR 6 billion for Q1 2025.

• Take a closer look at Saudi National Bank's potential here in our dividend report.
• Our comprehensive valuation report raises the possibility that Saudi National Bank is priced lower than what may be justified by its financials.

Arad (TASE:ARD)

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

Overview: Arad Ltd. designs, develops, manufactures, and sells water systems both in Israel and internationally, with a market cap of ₪1.34 billion.

Operations: Arad Ltd. generates revenue from its Electronic Test & Measurement Instruments segment, amounting to $394.04 million.

Dividend Yield: 3.3%

Arad's dividend history reveals volatility and unreliability over the past decade, despite recent growth. Trading at 51.9% below estimated fair value, its dividends are covered by earnings (49.4% payout ratio) and cash flows (54.5% cash payout ratio). The yield of 3.31% is low compared to top dividend payers in the IL market. Recent earnings show sales increased to US$394.04 million for 2024, though net income fell to US$24.29 million from the previous year.

• Navigate through the intricacies of Arad with our comprehensive dividend report here.
• According our valuation report, there's an indication that Arad's share price might be on the cheaper side.

Where To Now?

• Investigate our full lineup of 64 Top Middle Eastern Dividend Stocks right here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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