3 Middle Eastern Dividend Stocks Yielding Up To 7.4%

The Middle Eastern stock markets have recently seen a surge, with UAE stocks outperforming their Gulf peers as they reacted positively to the preliminary U.S.-Iran peace accord. This favorable market climate presents an opportunity for investors to consider dividend stocks, which can offer attractive yields, particularly in regions experiencing economic growth and stability.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 61 stocks from our Top Middle Eastern Dividend Stocks screener.

Let’s review some notable picks from our screened stocks.

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

Overview: Banque Saudi Fransi offers banking and financial services to individuals and businesses in Saudi Arabia and internationally, with a market cap of SAR48.36 billion.

Operations: Banque Saudi Fransi’s revenue is derived from several segments, including Treasury (SAR2.58 billion), Retail Banking (SAR3.39 billion), Corporate Banking (SAR3.00 billion), and Investment Banking & Brokerage (SAR681.32 million).

Dividend Yield: 5.5%

Banque Saudi Fransi’s dividend payments are currently covered by earnings, with a payout ratio of 53.5%, and are forecast to remain sustainable in three years at 48.8%. Despite this, the dividend yield of 5.49% is below the top tier in the Saudi Arabian market. The bank’s dividends have been volatile over the past decade, though they have increased overall during this period. It trades at a favorable P/E ratio of 9.8x compared to the market average of 17.3x, indicating good relative value despite an unstable dividend track record.

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

Overview: Mouwasat Medical Services Company operates hospitals, medical centers, drug stores, and pharmacies in Saudi Arabia and has a market cap of SAR13.38 billion.

Operations: Mouwasat Medical Services Company generates revenue through its Pharmaceuticals segment, contributing SAR498.22 million, and its Medical Services segment, which brings in SAR2.79 billion.

Dividend Yield: 3.4%

Mouwasat Medical Services offers a stable dividend yield of 3.38%, although it falls short of the top tier in the Saudi Arabian market. The company’s dividends have been reliable and consistently growing over the past decade, supported by a payout ratio of 51.5% and cash flow coverage at 66.7%. Trading at a P/E ratio of 16.1x, below the market average, Mouwasat presents good relative value with recent earnings showing steady growth in both sales and net income.

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

Overview: Al Maather Reit Fund is a real estate investment fund with a market capitalization of SAR551.72 million.

Operations: Al Maather Reit Fund generates its revenue from several segments, including Offices (SAR16.73 million), Schools (SAR6.39 million), Galleries (SAR15.71 million), Hospitals (SAR8.16 million), Warehouses (SAR6.93 million), and Hotel Suites (SAR12.80 million).

Dividend Yield: 7.4%

Al Maather Reit Fund’s dividend yield of 7.44% ranks it among the top 25% in Saudi Arabia, though its eight-year history shows volatility with declining payments. Despite this, dividends are covered by both earnings and cash flows at a payout ratio of 76.6%. The stock trades at a significant discount to estimated fair value, but recent earnings reveal a drop in net income to SAR 34.02 million from SAR 41.14 million last year.

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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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