3 Middle Eastern Dividend Stocks With Yields Up To 8.7%: A Deep Dive into Saudi Telecom, Delek Group, and Emaar Properties

The Middle East’s dynamic economies have long been fertile ground for dividend-seeking investors. With yields up to 8.7%, three standout stocks—Saudi Telecom Company, Delek Group, and Emaar Properties—are capturing attention. These companies offer attractive payouts while navigating regional growth and sector-specific challenges. Let’s explore their potential.

1. Saudi Telecom Company (SASE:7010) – Yield: 8.7%

Market Cap: SAR239.37 billion
Sector: Telecommunications

Saudi Telecom, the leading telecom provider in Saudi Arabia, offers a yield of 8.7% (as of April 2025), making it the highest on our list. Its dominance in digital infrastructure, cybersecurity, and cross-border services aligns with Saudi Vision 2030’s tech-driven economic goals.

Why Invest?
- Strong Earnings Growth: Net income rose to SAR24.69 billion in 2024, up from SAR13.30 billion in prior years.
- Sustainability: Despite a high cash payout ratio of 257.9%, dividends are earnings-backed (payout ratio below 100%), ensuring reliability.

Risks to Monitor:
- Cash Flow Concerns: Heavy reliance on special dividends may strain free cash flow.
- Regulatory Pressure: As a near-monopoly in Saudi telecom, it could face pricing or competition reforms.

2. Delek Group (TASE:DLEKG) – Yield: 9.31%

Market Cap: ₪15.88 billion
Sector: Energy & Oil Exploration

Delek Group, an Israeli energy giant, exceeds the 8.7% threshold with a 9.31% yield, driven by its oil and gas operations in the Eastern Mediterranean.

Why Invest?
- Sector Resilience: Benefits from rising global energy demand, with assets in Israel, Jordan, and Egypt.
- Growth Trajectory: Earnings rose 21.6% in 2024, underpinning dividend sustainability.

Risks to Monitor:
- Debt Levels: High leverage may constrain future capital flexibility.
- Geopolitical Risks: Regional instability could disrupt operations.

3. Emaar Properties PJSC (DFM:EMAAR) – Yield: 7.46%

Market Cap: AED142.7 billion (Q1 2025 sales)
Sector: Real Estate

Emaar, a Dubai real estate powerhouse, delivers a 7.46% yield, backed by infrastructure growth and Expo 2020’s legacy.

Why Invest?
- Sector Tailwinds: Dubai’s tourism boom and urbanization drive demand for Emaar’s mixed-use developments.
- Stable Dividends: Q1 2025 sales surged 30% YoY to AED142.7 billion, supporting consistent payouts.

Risks to Monitor:
- Market Volatility: Dubai’s real estate market faces cyclical risks.
- Competitive Pressure: Over-supply in certain segments could impact margins.

Key Considerations for Investors

• Sustainability: While yields are compelling, prioritize stocks with cash flow coverage ratios below 100% (e.g., Saudi Telecom’s earnings-backed dividends).
• Geopolitical Risks: Monitor oil prices, U.S.-China trade dynamics, and regional political stability.
• Diversification: Balance high-yield picks like Delek Group with stable banks (e.g., National Bank of Ras Al-Khaimah at 7.31%) to mitigate sector-specific risks.

Conclusion

The Middle East’s dividend landscape is rich with opportunities. Saudi Telecom leads with its 8.7% yield, though investors must weigh its cash flow risks against its earnings resilience. Delek Group’s 9.31% yield rewards energy-sector exposure, while Emaar Properties offers 7.46% with real estate upside.

For a conservative portfolio, pair these with UAE banking stocks like RAKBANK (7.31%) for stability. Aggressive investors might consider Delek Group, but always cross-check payout ratios and macroeconomic trends.

In a region poised for growth, these stocks provide a mix of income and capital appreciation potential—if navigated with caution.

Data as of May 2025. Always consult real-time financial reports before making investment decisions.