Middle Eastern Dividend Stocks For Reliable Income
As Gulf bourses rebound in line with global shares, the Middle Eastern markets are showing signs of recovery following recent volatility influenced by international trade tensions. In this environment, dividend stocks can offer a reliable source of income, providing investors with steady returns amidst fluctuating market conditions.
Name
Dividend Yield
Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)
8.55%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
7.92%
★★★★★☆
Arab National Bank (SASE:1080)
6.16%
★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)
6.77%
★★★★★☆
Saudi National Bank (SASE:1180)
6.13%
★★★★★☆
Saudi Awwal Bank (SASE:1060)
6.10%
★★★★★☆
Emirates NBD Bank PJSC (DFM:EMIRATESNBD)
5.25%
★★★★★☆
Saudi Telecom (SASE:7010)
9.33%
★★★★★☆
Commercial Bank of Dubai PSC (DFM:CBD)
6.59%
★★★★★☆
Nuh Çimento Sanayi (IBSE:NUHCM)
3.43%
★★★★★☆
Click here to see the full list of 64 stocks from our Top Middle Eastern Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Avrupakent Gayrimenkul Yatirim Ortakligi Anonim Sirketi operates in real estate development, leasing, and business administration in Turkey with a market cap of TRY22.78 billion.
Operations: Avrupakent Gayrimenkul Yatirim Ortakligi Anonim Sirketi generates revenue through land sales (TRY4.09 billion), residential and office projects (TRY1.49 billion), and rental offices and shopping centers (TRY1.87 billion).
Dividend Yield: 3.7%
Avrupakent Gayrimenkul Yatirim Ortakligi Anonim Sirketi's dividend payments are well supported by its financials, with a cash payout ratio of 17.6% and an earnings payout ratio of 20.4%. Despite being new to dividend distribution, its yield is competitive within the Turkish market at 3.69%. Recent earnings growth is strong, with net income reaching TRY 7.38 billion for the year ending December 31, 2024, up from TRY 4.71 billion previously.
Delve into the full analysis dividend report here for a deeper understanding of Avrupakent Gayrimenkul Yatirim Ortakligi Anonim Sirketi.
Insights from our recent valuation report point to the potential undervaluation of Avrupakent Gayrimenkul Yatirim Ortakligi Anonim Sirketi shares in the market.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret A.S. operates in the tire manufacturing industry and has a market capitalization of TRY26.18 billion.
Operations: Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret A.S. generates revenue of TRY34.55 billion from its vehicle tires segment.
Dividend Yield: 4%
Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret's dividend yield of 3.96% ranks in the top 25% of Turkish market payers, but its sustainability is questionable due to a high cash payout ratio of 332.2%. The company's net income fell significantly to TRY 1.52 billion from TRY 5.75 billion, impacting dividend reliability and stability over the past decade. Despite a low payout ratio suggesting earnings coverage, volatile dividends and decreased profit margins raise concerns for investors seeking consistent returns.
Click here to discover the nuances of Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret with our detailed analytical dividend report.
Our expertly prepared valuation report Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret implies its share price may be lower than expected.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Al Rajhi REIT Fund is a Sharia-compliant investment fund listed on Tadawul, focusing on generating periodic income through investments in income-generating real estate assets in Saudi Arabia, with a market cap of SAR2.26 billion.
Operations: The Al Rajhi REIT Fund generates revenue primarily from its commercial real estate segment, amounting to SAR1.51 billion.
Dividend Yield: 6.6%
Al Rajhi REIT Fund's dividend yield of 6.64% places it among the top 25% in the Saudi Arabian market, supported by a low payout ratio of 0.6%, indicating strong earnings coverage. However, its dividends have been unreliable and volatile over the past six years, with payments declining despite a significant earnings increase to SAR 1.42 billion from SAR 973.01 million year-on-year. While cash flow coverage is reasonable at a cash payout ratio of 25.8%, investors should consider its unstable dividend history when evaluating potential returns.
Take a closer look at Al Rajhi REIT Fund's potential here in our dividend report.
Our valuation report here indicates Al Rajhi REIT Fund may be undervalued.
Get an in-depth perspective on all 64 Top Middle Eastern Dividend Stocks by using our screener here.
Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
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.
Companies discussed in this article include IBSE:AVPGY IBSE:BRISA and SASE:4340.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Is Genetec Technology Berhad (KLSE:GENETEC) Worth RM1.0 Based On Its Intrinsic Value?
Genetec Technology Berhad's estimated fair value is RM0.78 based on 2 Stage Free Cash Flow to Equity Genetec Technology Berhad is estimated to be 25% overvalued based on current share price of RM0.97 Analyst price target for GENETEC is RM1.30, which is 67% above our fair value estimate Does the June share price for Genetec Technology Berhad (KLSE:GENETEC) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM94.4m RM20.6m RM32.1m RM41.5m RM50.5m RM58.7m RM66.0m RM72.4m RM78.2m RM83.4m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 29.30% Est @ 21.60% Est @ 16.21% Est @ 12.44% Est @ 9.80% Est @ 7.95% Est @ 6.66% Present Value (MYR, Millions) Discounted @ 13% RM83.8 RM16.2 RM22.5 RM25.8 RM27.9 RM28.8 RM28.8 RM28.1 RM26.9 RM25.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM314m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 13%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM83m× (1 + 3.6%) ÷ (13%– 3.6%) = RM967m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM967m÷ ( 1 + 13%)10= RM296m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM610m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of RM1.0, the company appears slightly overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Genetec Technology Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 13%, which is based on a levered beta of 1.508. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Genetec Technology Berhad Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Semiconductor market. Opportunity Annual revenue is forecast to grow faster than the Malaysian market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Annual earnings are forecast to grow slower than the Malaysian market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price exceeding the intrinsic value? For Genetec Technology Berhad, there are three additional items you should consider: Risks: For instance, we've identified 1 warning sign for Genetec Technology Berhad that you should be aware of. Future Earnings: How does GENETEC's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Yahoo
We Like These Underlying Return On Capital Trends At Seneca Foods (NASDAQ:SENE.A)
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. With that in mind, we've noticed some promising trends at Seneca Foods (NASDAQ:SENE.A) so let's look a bit deeper. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Seneca Foods: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.087 = US$85m ÷ (US$1.2b - US$244m) (Based on the trailing twelve months to December 2024). Therefore, Seneca Foods has an ROCE of 8.7%. In absolute terms, that's a low return but it's around the Food industry average of 10%. Check out our latest analysis for Seneca Foods While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Seneca Foods has performed in the past in other metrics, you can view this free graph of Seneca Foods' past earnings, revenue and cash flow. We're glad to see that ROCE is heading in the right direction, even if it is still low at the moment. The data shows that returns on capital have increased substantially over the last five years to 8.7%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 29%. So we're very much inspired by what we're seeing at Seneca Foods thanks to its ability to profitably reinvest capital. All in all, it's terrific to see that Seneca Foods is reaping the rewards from prior investments and is growing its capital base. And a remarkable 188% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. If you want to continue researching Seneca Foods, you might be interested to know about the 2 warning signs that our analysis has discovered. While Seneca Foods may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
6 hours ago
- Yahoo
China's Petrochemical Reliance on U.S. Outweighs Rare Earth Trade
US petrochemical producers may have found themselves on the front line of global trade wars, BNEF reports, with China's dependence on the US for feedstocks (see "Chinese Plastics Factories Face Mass Closure As US Ethane Supply Evaporates") blunting the impact of its dominations of exports of rare earth metals. China imported more than 565,000 barrels per day of petrochemical feedstocks from the US in 2024 according to the Energy Information Administration, with a value of over $4.7 billion. That dwarfed the $170 million of rare earths the US imported last year, about 70% of which came from China, according to the US Geological Survey. The figures show the dependence the US and China have developed on each other by ever tightening trade links over the past few decades. While China has a tight grip on refining many metals crucial for industry, it also takes in niche chemicals from the US that are difficult to buy elsewhere. China leans on naphtha to produce most base chemicals, which are processed further to end up in everyday items like electronics and clothing. However, some plants can switch to cheaper propane when the economics make sense, which they do regularly. Propane dehydrogenation plants however can't process alternatives like naphtha. The US accounted for over half of all China's propane imports in 2024. US producers have looked to China to buy their ballooning volumes of feedstock, the market value of which has almost quadrupled since 2020. China accounts for almost half of all new mixed-feed ethylene and propylene production capacity set to come online globally over the next four years, based on data compiled by BloombergNEF. A forced divorce The honeymoon period may be about to end. Following the implementation of tariffs by President Donald Trump's administration in April, China retaliated with its own on US imports — including a 125% tariff on feedstocks like propane and ethane. The duty effectively killed the economics of importing US feedstocks. Alternative sources of propane may be hard or expensive to come by, with producers in the Middle East sending most of their supplies to India, South Korea and Japan. While some rerouting could take place, Middle Eastern players could use the lack of alternatives for China's propane dehydrogenation plants to charge a premium. China's propane dehydrogenation operators, like Hengli Petrochemical, have already suffered from weak margins over the past years. Many may opt to shut their operations temporarily. A messy settlement China moved quickly to remove tariffs on US ethane as trade talks commenced. However, while China seems willing to buy US ethane, the US administration may no longer allow it. Enterprise Products Partners — the largest US-based exporter of petrochemical feedstocks — received a notice on Wednesday from the Bureau of Industry and Security at the US Department of Commerce, denying licenses to export ethane to China on the basis that such flows 'pose an unacceptable risk of use in or diversion to a 'military end use' in China.' Energy Transfer received a similar communication. China's ethane cracking capacity is dwarfed by its capacity to process naphtha and propane, but almost all of its ethane imports come from the US. The restrictions will have a significant impact on the Lianyungang and Tianjin plants, owned by Satellite Chemical, Sinopec and INEOS. SP Chemicals, a Singapore-based producer, sources most of its feedstock from Enterprise Products Partners. As the trade war continues, it appears commodities may lead the confrontation, with players on both sides set to feel the pain. By More Top Reads From this article on
