Growing Interest in Dividend Stocks Amid Economic Fluctuations
As Middle Eastern markets show improvement, driven by speculation of a rate reduction by the U.S. Federal Reserve,
investors are increasingly focused on dividend stocks as a reliable source of income amid varying economic conditions.
In this context, choosing dividend stocks known for robust fundamentals and a track record of consistent payouts
can offer a dependable opportunity for income and portfolio diversification.
Key Dividend Stocks and Their Performance
| Name | Dividend Yield | Dividend Rating |
|---|---|---|
| Yeni Gimat Gayrimenkul Yatirim Ortakligi (IBSE:YGGYO) | 5.49% | ★★★★★★ |
| Saudi Awwal Bank (SASE:1060) | 6.37% | ★★★★★☆ |
| National General Insurance (P.J.S.C.) (DFM:NGI) | 7.76% | ★★★★★☆ |
| National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK) | 6.49% | ★★★★★☆ |
| Emaar Properties PJSC (DFM:EMAAR) | 7.12% | ★★★★★☆ |
| Göltas Göller Bölgesi Cimento Sanayi ve Ticaret (IBSE:GOLTS) | 3.54% | ★★★★★☆ |
| Computer Direct Group (TASE:CMDR) | 8.05% | ★★★★★☆ |
| Commercial Bank of Dubai PSC (DFM:CBD) | 5.40% | ★★★★★☆ |
| Arab National Bank (SASE:1080) | 5.79% | ★★★★★☆ |
| Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT) | 5.99% | ★★★★★☆ |
Highlighted Stock: Commercial Bank of Dubai PSC
The Commercial Bank of Dubai PSC offers a variety of banking services in the UAE, boasting a market capitalization of AED28.03 billion.
Its revenue streams include Personal Banking (AED2.13 billion), Corporate Banking (AED1.33 billion), and Institutional Banking (AED1.48 billion).
Dividend Insights
With a dividend yield of 5.4%, the bank has established a stable dividend structure, featuring consistent growth over the last decade.
Its current payout ratio is 46.7%, indicating that dividends are comfortably supported by earnings, and a future payout forecast of 39.3% reflects sustainability.
Despite its yield being lower than some top competitors in the UAE, its price-to-earnings ratio of 8.6x signifies it offers good value compared to the market average of 11.7x.
Financial Caution
However, the bank’s high non-performing loans ratio (4%) and low bad loan allowance (93%) may raise some concerns.
Recent earnings growth bolsters confidence in its dividend payments.
Conclusion
This overview emphasizes the importance of strong fundamentals when selecting dividend stocks in an uncertain economic environment.
For a more comprehensive list, click here to see all 59 stocks from our Top Middle Eastern Dividend Stocks screener.
