Top Middle Eastern Dividend Stocks to Watch in March 2025

As the Middle Eastern markets navigate a mixed landscape marked by weak earnings in Saudi Arabia and gains in Dubai, investors are keenly observing the region's economic indicators and geopolitical developments that could influence market dynamics. In this environment, dividend stocks remain an attractive option for those seeking steady income and potential long-term growth, as they often provide a buffer against market volatility while benefiting from the region's robust economic activities.



Market Dynamics

The Middle Eastern markets are showing signs of resilience, with most Gulf indices ending in positive territory amid hopes for U.S. tariff relief. Investors are closely monitoring key economic indicators and geopolitical developments that could influence market dynamics. In this dynamic environment, dividend stocks in the Middle East can offer attractive yields and stability, making them an appealing choice for those looking to balance growth with income amidst economic uncertainties.

Top Dividend Stocks

# Mashreqbank PSC (DFM:MASQ)

Mashreqbank PSC offers a range of banking and financial services to individuals and small businesses, with a market capitalization of AED52.96 billion. The bank's revenue segments include Retail at AED4.26 billion, Wholesale Banking at AED4.78 billion, Insurance & Others at AED3.22 billion, and Treasury and Capital Markets at AED1.15 billion. Mashreqbank PSC offers an attractive dividend yield of 7.99%, placing it in the top 25% of dividend payers in the AE market. Despite a volatile dividend history over the past decade, its dividends are well-covered by earnings with a current payout ratio of 47.5%, expected to remain sustainable at 51.2% in three years. Recent financial results show an increase in net income, supporting its capacity for future payouts, though earnings are forecasted to decline annually by 8.7%.

# Panora Gayrimenkul Yatirim Ortakligi (IBSE:PAGYO)

Panora Gayrimenkul Yatirim Ortakligi A.S. operates in the real estate investment sector with a market capitalization of TRY5.52 billion. The company generates revenue primarily from its REIT - Commercial segment, amounting to TRY574.41 million. Panora Gayrimenkul Yatirim Ortakligi offers a dividend yield of 4.51%, ranking in the top 25% of TR market dividend payers. Despite an unstable and unreliable dividend history over the past decade, its dividends are well-covered by earnings and cash flows with payout ratios of 27% and 26.5%, respectively. Earnings grew significantly by 44.7% last year, yet non-cash earnings raise concerns about quality, impacting long-term sustainability despite recent growth in dividends.

# Gan Shmuel Foods (TASE:GSFI)

Gan Shmuel Foods Ltd. operates in Israel, focusing on the production, marketing, and sale of citrus fruit, tomato, and other non-citrus fruit products with a market capitalization of ₪470.24 million. The company generates its revenue from two main segments: Retailer, contributing $49.57 million, and Industrial, accounting for $256.79 million. Gan Shmuel Foods offers a dividend yield of 5.88%, placing it in the top quartile of IL market dividend payers. However, its dividends have been volatile and declining over the past decade, raising concerns about reliability. Despite this, dividends are well-covered by earnings and cash flows with low payout ratios of 24.9% and 24.5%, respectively. The stock trades significantly below estimated fair value, but sustainability issues persist due to its unstable dividend history despite recent earnings growth.

Risk Mitigation Strategies

Investors can mitigate the risks associated with the volatility in dividend payments by diversifying their portfolio across different sectors and geographies. Focusing on companies with strong financial performance and low payout ratios can also help ensure the sustainability of dividend payments. Additionally, using tools like the Simply Wall St app can help investors stay up-to-date with market information and receive personalized updates on their portfolio's performance.

Conclusion

The Middle Eastern markets offer a mix of opportunities and challenges for investors seeking steady income and potential long-term growth. Dividend stocks in the region can provide a buffer against market volatility while benefiting from robust economic activities. However, investors should carefully consider the reliability and sustainability of dividends, as well as the potential impact of geopolitical and economic factors on the region's markets. By diversifying their portfolio and focusing on companies with strong financial performance, investors can mitigate the risks associated with the volatility in dividend payments and achieve their investment goals.