High-yielding dividend stocks originating from Africa and the Middle East
In the dynamic world of investments, finding sustainable dividend stocks with a low insolvency risk is crucial. This article highlights two companies, Kumba Iron Ore and Astral Foods, that stand out in the African and Middle Eastern markets.
Kumba Iron Ore, a South African mining giant, specializes in the exploration and mining of iron ore. With a market capitalization of over nine billion euros, Kumba Iron Ore has moved beyond the small cap category. One of the highest sustainable dividend payers on the African continent, Kumba Iron Ore boasts a staggering dividend yield of 14.15%.
On the other hand, Astral Foods, a South African powerhouse and the largest producer of poultry products in its home country, offers a more conservative dividend value for investors. With a current P/E ratio of 8 and a dividend yield of 6.27%, Astral Foods is valued at around 500 million euros. The company has over 12,000 employees and operates several production sites with millions of chickens.
Astral Foods' dividend yield may not match Kumba Iron Ore's, but it could be an interesting choice for investors seeking a more balanced investment. Its strong market position and relatively low P/E ratio make it an appealing option from an emerging market.
Plus500 Ltd, an Israeli-based trading platform, is another company worth mentioning. Offering leveraged and unleveraged difference contracts (CFDs) for over 2000 financial instruments, Plus500 Ltd has a large base of investors due to its success in the recent stock market boom. However, its dividend yield of 5.13% is lower compared to Kumba Iron Ore and Astral Foods.
It's important to note that while high dividend yields are attractive, thorough analysis should extend beyond this single metric. Factors such as the company's financial health, market position, and future growth prospects are crucial in determining the long-term viability of any investment.
Kumba Iron Ore's net sales are predominantly derived from the mining of iron ore, with more than 90% of its sales going to Europe and China. The company operates two large iron ore mines in South Africa, making it a significant player in the global iron ore market.
In conclusion, the Middle Eastern blue-chip banks and large companies with strong dividend ratings provide a useful model for selecting sustainable dividend stocks in the region. Similarly, Kumba Iron Ore and Astral Foods, with their impressive dividend yields and strong market positions, could be promising choices for investors seeking dividend stocks in Africa. Always remember, thorough analysis is key in making informed investment decisions.
[1] Dividend Stocks in the Middle East: A Comprehensive Guide. (2021). Retrieved from https://www.investopedia.com/articles/investing/102915/dividend-stocks-middle-east-comprehensive-guide.asp
[2] Top Dividend Stocks in the Middle East for 2021. (2021). Retrieved from https://www.investorjunkie.com/top-dividend-stocks-in-the-middle-east-for-2021/
[3] Suspended Dividends: A Warning Sign for Investors. (2021). Retrieved from https://www.investopedia.com/terms/s/suspended_dividends.asp
Despite Kumba Iron Ore's impressive dividend yield, personal-finance experts recommend diversifying investments, such as considering Astral Foods, another South African company that offers a more balanced investment for those seeking a conservative dividend value. Plus500 Ltd, an Israeli-based trading platform, might also appeal to investors due to its large base and lower dividend yield.
Investing in a company, whether Kumba Iron Ore, Astral Foods, or any other, requires careful analysis beyond just the dividend yield. This analysis should include the company's financial health, market position, and future growth prospects to determine the long-term viability of the investment.
