As Middle Eastern markets navigate through geopolitical tensions and uncertainties surrounding U.S. policies, investors are closely watching the fluctuations in Gulf indices, with some regions experiencing declines while others show resilience. Amidst this backdrop, dividend stocks can offer a degree of stability and income potential, making them an attractive consideration for those seeking to balance risk with reliable returns in such volatile times.

Top 10 Dividend Stocks In The Middle East

Name	Dividend Yield	Dividend Rating
Yeni Gimat Gayrimenkul Yatirim Ortakligi (IBSE:YGGYO)	5.19%	★★★★★★
Saudi Investment Bank (SASE:1030)	5.82%	★★★★★☆
Saudi Awwal Bank (SASE:1060)	5.72%	★★★★☆☆
Riyad Bank (SASE:1010)	6.32%	★★★★★☆
National General Insurance (P.J.S.C.) (DFM:NGI)	7.20%	★★★★★☆
Emaar Properties PJSC (DFM:EMAAR)	6.73%	★★★★★☆
Computer Direct Group (TASE:CMDR)	7.72%	★★★★★☆
Banque Saudi Fransi (SASE:1050)	6.15%	★★★★★☆
Arab National Bank (SASE:1080)	5.77%	★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)	5.00%	★★★★★☆

We're going to check out a few of the best picks from our screener tool.

Saudi Investment Bank (SASE:1030)

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

Overview: The Saudi Investment Bank offers commercial and retail banking services to individuals, small to medium-sized businesses, and corporate and institutional clients in Saudi Arabia, with a market cap of SAR17.18 billion.

Operations: The Saudi Investment Bank's revenue is derived from Retail Banking (SAR1.39 billion), Corporate Banking (SAR1.49 billion), Asset Management and Brokerage (SAR271.08 million), and Treasury and Investments, including Business Partners (SAR1.10 billion).

Dividend Yield: 5.8%

Saudi Investment Bank offers a dividend yield in the top 25% of the Saudi market, though its dividend history has been volatile. The payout ratio is sustainable at 55.7%, with future coverage expected to remain stable. Despite past instability, dividends have increased over the last decade. Earnings have grown annually by 18.2% over five years, supporting potential future payouts. The bank's P/E ratio of 9.6x suggests it may be undervalued compared to the broader market.

Arab National Bank (SASE:1080)

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

Overview: Arab National Bank offers a range of banking products and services across the Kingdom of Saudi Arabia, other GCC countries, the Middle East, Europe, North America, Latin America, Southeast Asia, and internationally with a market cap of SAR45.08 billion.

Operations: Arab National Bank's revenue is primarily derived from Corporate Banking (SAR6.85 billion), followed by Retail Banking (SAR1.48 billion), Treasury operations (SAR913.28 million), and Investment and Brokerage Services (SAR536 million).

Dividend Yield: 5.8%

Arab National Bank's dividend yield is among the top 25% in the Saudi market, with a current payout ratio of 49.6%, indicating sustainability. Earnings have grown by 21.9% annually over five years, supporting future dividends, which are forecast to be well covered in three years at a 47.3% payout ratio. However, its dividend history has been volatile despite increases over the past decade. The bank trades at a P/E ratio of 8.6x, suggesting good value compared to peers and industry averages.

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 capitalization of ₪1.69 billion.

Operations: Computer Direct Group Ltd.'s revenue is primarily derived from three segments: Infrastructure and Computing (₪1.35 billion), Outsourcing of Business Processes and Technology Support Centers (₪434.20 million), and Technological Solutions and Services, Management Consulting, and Value-Added Services (₪2.73 billion).

Dividend Yield: 7.7%

Computer Direct Group offers a compelling dividend yield, ranking in the top 25% of Israeli market payers. Despite its attractive yield, the company's dividend history has been volatile over the past decade. Recent earnings growth of 21.2% supports its payout sustainability, with a reasonable payout ratio of 61.3%. The dividends are well-covered by both earnings and cash flows, with a low cash payout ratio of 32.2%. Trading significantly below estimated fair value enhances its investment appeal.

Key Takeaways

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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.