One of the advantages of buying stocks over something like gold is that you don’t need to sell your stocks to make money from them. You can sit in the comfort of your room and receive dividend payments (usually quarterly or monthly) from the companies you own.
You can reinvest these dividends, use them to meet some of your needs and wants, or add them to your emergency funds, depending on your financial situation and goals. Whatever you choose to do, receiving payments for holding an asset you can still sell for a profit is surely exciting.
If dividends are important to you, then your investing strategy should focus on selecting the best dividend stocks in the UAE. This can mean focusing on those who pay the highest dividend yield (dividends paid as a % of market price), those who pay dividends most consistently (for example, they have paid every year over the past 15 years), or those with the highest dividend growth rate (also known as dividend growth stocks).
And who says you cannot find companies that do them all?
In what follows, we will consider the 10 best dividend stocks in the UAE based on these three factors. To provide value for both those who invest locally in the UAE and those with access to the US stock market, our list will be equally divided between US and UAE stocks.
Excited? Let’s get started.
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Disclaimer: This list of the top dividend-paying stocks does not constitute a buy recommendation. Investors should do their research.
1. T.Rowe Price Group (TROW)
Overview
T. Rowe Price Group (TROW) is an investment management company that provides investment services to retail and institutional investors. It specializes in launching and managing mutual funds (equity and fixed income).
Robert Sharp, CEO of T. Rowe Price Group
Source: Pensions and Investments
This company has a reputation for consistently paying dividends and increasing dividend payments, which has made it one of the high dividend growth stocks that have become a darling of dividend and dividend-growth investors.
Key highlights
- Forward annual dividend yield: 5.22%
- Trailing annual dividend yield: 5.13%
- Dividend consistency and growth: TROW has consistently increased dividend payments for 38 years.
- 10-year annualized dividend growth rate: 10.49%
- Dividend frequency: Quarterly
- 1-year return: -10.82%
- 5-year return: 5.83%
- Listing: NASDAQ
Note: Forward annual dividend yield is the dividend that is projected to be paid over the next 12 months divided by the current market price. Trailing annual dividend yield is the dividend paid over the past 12 months divided by the current market price.
2. Verizon Communications (VZ)
Overview
Verizon Communications (VZ) is a telecommunications company that provides wireless, broadband, and fiber-optic services to individuals, businesses, and government agencies across the globe. The company serves 99% of Fortune 500 companies.
Verizon Communications’ Headquarters
Source: Stantec
Like TROW, VZ has a long history of paying and increasing dividends, even though its dividend growth rate is lower. However, it has a higher dividend yield than VZ.
Key highlights
- Forward annual dividend yield: 6.40%
- Trailing annual dividend yield: 6.33%
- Dividend consistency and growth: VZ has consistently increased dividend payments for 21 years.
- 10-year annualized dividend growth rate: 2.15%
- Dividend frequency: Quarterly
- 1-year return: 11.64%
- 5-year return: 2.89%
- Listing: New York Stock Exchange (NYSE)
3. UnitedHealth Group Incorporated (UNH)
Overview
UnitedHealth Group Incorporated (UNH) is a healthcare and insurance company that provides health benefit plans, healthcare analytics and software consulting, as well as wellness programs and health services.
Stephen Hemsley, UnitedHealth Group’s CEO
Source: LinkedIn
UNH is another one of the growth and dividend stocks that investors like. Though it does not provide as much dividend yield as VZ and TROW, its 10-year annualized dividend growth rate of 18.80% far exceeds theirs.
Key highlights
- Forward annual dividend yield: 2.73%
- Trailing annual dividend yield: 2.70%
- Dividend consistency and growth: UNH has consistently paid dividends since 1990 and has increased dividends for 16 consecutive years.
- 10-year annualized dividend growth rate: 18.80%
- Dividend frequency: Quarterly
- 1-year return: -39.10%
- 5-year return: 14.06%
- Listing: New York Stock Exchange (NYSE)
4. United Parcel Service (UPS)
Overview
United Parcel Service (UPS) is a logistics and package delivery company headquartered in the US that operates in more than 220 countries and territories. Its services include parcel delivery, supply chain solutions, and freight transportation.
A UPS Delivery Vehicle
Source: Fortune
The company provides a higher dividend yield than TROW, but unlike VZ, it combines this higher dividend yield with a high dividend growth rate, which makes it one of the top high-dividend-growth stocks in the US.
Key highlights
- Forward annual dividend yield: 6.58%
- Trailing annual dividend yield: 6.54%
- Dividend consistency and growth: UPS has consistently paid dividends for more than 25 years, and it has increased dividends for 16 consecutive years.
- 10-year annualized dividend growth rate: 9.07%
- Dividend frequency: Quarterly
- 1-year return: -29.96%
- 5-year return: 29.73%
- Listing: New York Stock Exchange (NYSE)
5. Gilead Sciences (GILD)
Overview
Gilead Sciences (GILD) is a biotechnology company that develops medicines in areas where current healthcare needs are unmet. It focuses on developing antiviral drugs for HIV, hepatitis, and other diseases.
Gilead Sciences’ Researchers at Work
Source: Gildea Sciences
Though biotechnology companies are known for unstable earnings (which makes it difficult to achieve dividend consistency), GILD is one of the exceptions in the industry. Its strong product portfolio, multiple revenue streams, and cash flow management have helped it increase dividends over the past nine years.
Key highlights
- Forward annual dividend yield: 3.21%
- Trailing annual dividend yield: 3.06%
- Dividend consistency and growth: GILD has consistently increased dividends for the past nine years.
- 5-year annualized dividend growth rate: 3.82%
- Dividend frequency: Quarterly
- 1-year return: 50.88%
- 5-year return: 55.89%
- Listing: NASDAQ
Other worthy mentions in the US: Altria Group (MO), Moody’s Corporation (MCO), D.R. Horton, Inc. (DHI), Tractor Supply Company (TSCO), and Procter & Gamble Co. (PG).
Now that we have covered five growth and dividend stocks in the US, we turn our attention to the highest dividend-paying stocks in the UAE.
In a similar fashion to the US list, we focus on Emirati companies that combine the three features of high dividend growth stocks: high dividend yield, high dividend growth, and consistent dividend payment.
6. Emirates NBD Bank PJSC (ENBD)
Overview
Emirates NBD Bank (ENBD) provides a variety of financial services, including investment banking, commercial banking, retail banking, private banking, Islamic banking, and corporate banking. It is one of the biggest banking brands in the entire Middle East and North Africa (MENA) region.
Shayne Nelson, Emirates NBD’s CEO
Source: Emirates NBD
Though the company does not increase dividend payments every year, its average dividend growth rate over the past five years (20.11%) is very impressive. Similarly, its dividend yield is higher than the industry’s median.
Key highlights
- Forward annual dividend yield: 4.71%
- Trailing annual dividend yield: 4.71%
- Dividend consistency and growth: Emirates NBD has consistently paid dividends since 2008. However, dividend per share (DPS) and dividend payout ratio (DPO) have risen and fallen over time.
- 5-year annualized dividend growth rate: 20.11%
- Dividend frequency: Annual
- 1-year return: 37.60%
- 5-year return: 220.35%
- Listing: Dubai Financial Market (DFM)
7. Air Arabia PJSC (AIRA)
Overview
Air Arabia (AIRA) is a UAE-based airline that operates flights across MENA, Asia, and Europe. Headquartered in Sharjah, its services include passenger travel, commercial transportation, cargo transportation, aviation training, aircraft repairs, and the trading of aircraft and spare parts, among others.
Air Arabia’s Airplane
Source: Air Arabia
AIRA is one of the top dividend growth stocks in the UAE, offering a high dividend yield (almost double the industry median) and dividend growth rate.
Key highlights
- Forward annual dividend yield: 7.12%
- Trailing annual dividend yield: 7.12%
- Dividend consistency and growth: AIRA has consistently paid dividends since 2009. However, dividend per share (DPS) and dividend payout ratio (DPO) have risen and fallen over time.
- 5-year annualized dividend growth rate: 22.67%
- Dividend frequency: Annual
- 1-year return: 51.70%
- 5-year return: 358.49%
- Listing: Dubai Financial Market (DFM)
8. Mashreq Bank PSC (MASQ)
Overview
Mashreq Bank (MASQ) is a banking and investment company whose services include retail banking, corporate banking, commercial banking, investment banking, and investment management. It is one of the oldest banks in the UAE.
While its dividend yield is very high, the main appeal of this company is its dividend growth rate (42.91%), which makes it one of the best dividend stocks in the UAE.
Key highlights
- Forward annual dividend yield: 8.79%
- Trailing annual dividend yield: 8.79%
- Dividend consistency and growth: MASQ has consistently paid dividends since 2002. However, dividend per share (DPS) and dividend payout ratio (DPO) have risen and fallen over time.
- 5-year annualized dividend growth rate: 42.91%
- Dividend frequency: Annual
- 1-year return: 35.13%
- 5-year return: 422.59%
- Listing: Dubai Financial Market (DFM)
9. Fujairah Building Industries PJSC (FBI)
Overview
Fujairah Building Industries (FBI) is a manufacturer of various construction or building materials, including marble, tiles, blocks, crushed sand, and gabbro aggregates, among others.
A Factory at Fujairah Concrete Products, Subsidiary of FBI
Source: BFT International
This company combines a high dividend yield (the highest in this list) with an impressive dividend growth rate (14.87%) that lovers of dividend growth stocks will appreciate.
Key highlights
- Forward annual dividend yield: 8.85%
- Trailing annual dividend yield: 8.85%
- Dividend consistency and growth: FBI consistently paid dividends between 2008 and 2011. They would not resume dividend payments until 2017, and they have paid every year since then. Like the other UAE companies, the dividend per share (DPS) and the dividend payout ratio (DPO) have risen and fallen over time.
- 5-year annualized dividend growth rate: 14.87%
- Dividend frequency: Annual
- 1-year return: 6.60%
- 5-year return: 222.86%
- Listing: Abu Dhabi Securities Exchange (ADX)
10. Emaar Properties PJSC (EMAAR)
Overview
Emaar Properties (EMAAR) is a real estate developer that operates in both the residential and commercial markets in Dubai. It was responsible for the development of iconic buildings like the Burj Khalifa, Dubai Mall, and Dubai Marina.
Burj Khalifa, Developed by Emaar Properties
Source: Visit Dubai
This company combines a high dividend yield with an impressive growth rate. Also, it has the longest history of dividend payment among all the UAE companies featured in this list.
Key highlights
- Forward annual dividend yield: 7.41%
- Trailing annual dividend yield: 7.41%
- Dividend consistency and growth: EMAAR has been paying dividends since 2000. Within that period, it only failed to pay dividends in three years (2020, 2009, and 2010). Like the other UAE companies, the dividend per share (DPS) and the dividend payout ratio (DPO) have risen and fallen over time.
- 5-year annualized dividend growth rate: 14.3%
- Dividend frequency: Annual
- 1-year return: 79.37%
- 5-year return: 594.38%
- Listing: Dubai Financial Market (DFM)
Other worthy mentions in the United Arab Emirates: Dubai Electricity & Water Authority (DEWA), Investcorp Capital (ICAP), Dubai Islamic Bank (DIB), Alef Education Holding (ALEFEDT), and National Bank of Umm Al-Qaiwain (NBQ)
How to invest in the best dividend stocks in the UAE
Two things remain to be said.
First, though consistent dividend payment is often a sign of health and stability (lower volatility) in a company, responsible investing still requires that you learn how to pick a stock to invest in, which often involves understanding stock market fundamental and technical analysis. A look at Warren Buffett’s stock holdings and the principles that drive his stock selection is a good place to start.
In other words, you want to know if a stock is sound before you consider its credentials as a dividend stock. You should consider other measures of financial health like debt levels, return on equity, net profit margin, current ratio, earnings growth rate, among others. And if you are a value investor, you want to know if the share price is lower than its intrinsic value.
Second, if you don’t have the time or expertise to research individual stocks, you should consider purchasing dividend ETFs instead. These are ETFs that invest in dividend stocks. Some of them focus on dividend yield while others prioritize dividend growth. Yet, some have a mixed approach, just like the one we have exemplified above.
In general, ETFs are more cost-effective than buying individual stocks. They are also less risky and make it easier for you to achieve diversification.
If you are a dividend investor in the UAE, you can invest in the best dividend stocks in the UAE through Sarwa. You can purchase individual dividend stocks and ETFs through the Sarwa app, which is available on the Google Play Store and the App Store.
With Sarwa, you will enjoy low commissions, free transfers from (and to) your local bank account, 256-bit encryption to protect your data and money, and an intuitive platform that makes your trading experience seamless.
What is more? You can get started with just $1 (or AED 3.67).
What are you waiting for? Sign up for Sarwa today to start implementing your dividend investing strategy in a cost-effective, secure, and convenient way.
Takeaways
- Unlike assets like gold, dividend stocks provide investors with regular income (monthly, quarterly, or annually) through dividend payments, making them appealing to those seeking passive income or wealth-building through reinvestment.
- The best dividend stocks—whether in the UAE or US—are those that have a track record of consistently paying dividends, offering high dividend yields, and showing strong long-term dividend growth.
- Dividend history alone isn’t enough—sound investing also involves evaluating company fundamentals like debt levels, profit margins, and earnings growth to ensure long-term sustainability.
- For investors lacking time or expertise, dividend-focused ETFs provide a diversified, lower-risk, and cost-effective way to gain exposure to dividend-paying companies.