Middle Eastern Dividend Stocks Featuring Top 3 Picks

In the midst of geopolitical uncertainty and mixed performances across Gulf markets, investors in the Middle East are closely monitoring developments such as US-Iran talks that could impact regional stability and economic conditions. Amidst these fluctuations, dividend stocks remain an attractive option for those seeking steady income streams, especially given their potential to provide resilience in volatile markets.

Top 10 Dividend Stocks In The Middle East

Click here to see the full list of 57 stocks from our Top Middle Eastern Dividend Stocks screener.

Here’s a peek at a few of the choices from the screener.

Computer Direct Group (TASE:CMDR)

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

Overview: Computer Direct Group Ltd. operates in the computing and software sector in Israel with a market cap of ₪1.11 billion.

Operations: Computer Direct Group Ltd. generates revenue from its operations in the computing and software industry within Israel.

Dividend Yield: 11.8%

Computer Direct Group’s dividend payments are supported by a payout ratio of 61.3% and a cash payout ratio of 30.1%, indicating sustainability through earnings and cash flows. However, the dividends have been volatile, with significant drops over the past decade, making them unreliable despite their growth history. The company’s current dividend yield is among the top in Israel at 11.78%. Recent earnings show increased profitability with net income rising to ILS 97.35 million for 2025.

• Unlock comprehensive insights into our analysis of Computer Direct Group stock in this dividend report.
• Upon reviewing our latest valuation report, Computer Direct Group’s share price might be too pessimistic.

Matrix IT (TASE:MTRX)

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

Overview: Matrix IT Ltd., along with its subsidiaries, offers information technology solutions and services across Israel, the United States, and Europe, with a market cap of ₪8.26 billion.

Operations: Matrix IT Ltd.’s revenue segments include Cloud and Computing Infrastructure at ₪1.61 billion, Sales, Marketing and Support of Software Products at ₪474.31 million, Information Technology Solutions and Services in the United States at ₪454.30 million, and Information Technology Solutions and Services, Consulting and Management in Israel (including Training and Implementation) at ₪3.65 billion.

Dividend Yield: 3.6%

Matrix IT’s dividends are well-covered by earnings and cash flows, with payout ratios of 74.5% and 52%, respectively. Over the past decade, dividends have grown steadily without volatility, although the yield of 3.6% is below top-tier levels in Israel. Despite recent shareholder dilution and high share price volatility, Matrix IT’s inclusion in the FTSE All-World Index highlights its market presence as it prepares to release fiscal year 2025 results on March 15, 2026.

• Delve into the full analysis dividend report here for a deeper understanding of Matrix IT.
• Our comprehensive valuation report raises the possibility that Matrix IT is priced higher than what may be justified by its financials.

Bank Hapoalim B.M (TASE:POLI)

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

Overview: Bank Hapoalim B.M., along with its subsidiaries, offers a range of banking and financial services in Israel, North America, Europe, and internationally, with a market cap of ₪100.56 billion.

Operations: Bank Hapoalim B.M.’s revenue segments include Israel – Households – Other (₪5.53 billion), Israel – Small and Micro Business – Other (₪3.89 billion), Israel – Big Business – Other (₪2.23 billion), Overseas – Business Activity (₪882 million), and several other banking services across different sectors and regions, contributing to its diverse financial operations.

Dividend Yield: 4%

Bank Hapoalim B.M.’s dividends are covered by a low payout ratio of 41.8%, though they have been volatile over the past decade. Despite a relatively low dividend yield of 4.05% compared to top payers in Israel, recent earnings results show strong growth, with net income reaching ILS 9.80 billion for 2025, up from ILS 7.64 billion the previous year. Recent fixed-income offerings totaling $2 billion may impact future financial flexibility and dividend stability.

• Navigate through the intricacies of Bank Hapoalim B.M with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential overvaluation of Bank Hapoalim B.M shares in the market.

Key Takeaways

• Delve into our full catalog of 57 Top Middle Eastern Dividend Stocks here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio’s performance.
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Curious About Other Options?

• 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.

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