What UAE stock investors are getting - big H1-2024 dividends and 0% trading fee options

Dubai: This is what UAE stock market investors are getting in the coming days - some sizeable H1-2024 dividends. And more chances to trade in UAE stocks at zero per cent fees or commissions. And of course, more IPOs to get into, including potentially the one from food delivery services giant Talabat.  

This is indeed a boom of sorts for UAE stock investors, with many listed companies confirming ‘record dates’ for dividend payments related to the first six months of 2024. For many of the new investors on DFM and ADX, this would be the first time they are getting such a payout. (The record date is the final date by which investors need to hold a particular stock to qualify for its dividend.) 

The upbeat sentiments on H1-24 dividend yields set the stage for what could be an extremely frenetic Q4.

More 0% trading fees

Already, some of the biggest stock trading platforms are priming the pump with offers of zero fees or commissions. The Dubai mega-bank Emirates NBD announced its offer to ‘buy and sell UAE equities with zero transaction fees’ until December 31 for those using its ENBD X platform.

“Commissions going to zero is something of a norm in the US equity markets for a while,” said Sameer Lakhani, Managing Director of Global Capital Partners. “These platforms have focused on order flows rather than fee income.

“This is something the UAE stock trading platforms are inevitably following as the market matures and more market makers get into the fray.

“With dividend yields nearly double than in the US and valuations around 30-40 per cent lower, the stage is set for a further influx of investors to capitalize on these.”

H1-2024 dividends and record dates

The ADNOC entity Borouge recently set September 5 as the record date and told investors they will be getting 7.94 fils a share within 30 days thereafter. The dividend yield works out to a robust 6.30 per cent annualized. (The petrochemicals giant is paying $650 million in total as interim dividend.)

Other payouts are also in various stages of getting processed. So, in dividend terms, which listed UAE companies currently offer the highest yields?

The chart toppers are:

While they await the H1-24 dividends, investors are already turning their attention to the next round of IPOs to light up the UAE stock markets. The biggest buzz these days is around the food delivery service provider Talabat’s intent to float on DFM. No dates have been set, but this has all the makings of an eagerly anticipated one.

Recent days have seen UAE stock indices remain in the green, while US markets fret about Nvidia's steep fall in market cap and the general health of the tech sector.

"This week’s relentless (US) market slide is a reflection of mounting fears that a 50 bp cut isn’t a soft cushion but rather a red flag signaling turbulent economic waters ahead," said Stephen Innes, Managing Partner of SPI Asset Management, in a new commentary. "And now, all eyes are on the real litmus test: the August jobs report. A weak report that pushes the unemployment rate higher will almost certainly ignite the simmering growth fears, potentially setting the stage for another painful correction—eerily reminiscent of last month's chaos."

But what's looking shaky for the US markets isn't necessarily the case in the UAE. Analysts have been suggesting that local markets are showing enough resilience and discounting the possibility of what is primarily a US specific issue - its tech stocks being excessively overvalued - hurting investor sentiments here.

At least, that's been the case for the last few days. 

If more evidence is needed, check out the NMDC Energy IPO that closed this week, eliciting an over-subscription of 31.3 times and generating Dh88 billion. "The immense investor interest in our IPO clearly demonstrates that the market understands the value and potential of NMDC Energy," said Ahmed Al Dhaheri, CEO of NMDC Energy.

"This IPO consolidates the UAE’s position a leader in supplying the world’s energy needs. As we prepare for a new phase as an ADX-listed company, we will build on this milestone by targeting organic and inorganic growth, expanding our geographical reach, as well as creating synergies that drive transformation and innovation across the business.”

Sentiments that will, no doubt, be shared by the next round of IPOs making their way to the start line.

How have UAE's blue-chips done on H1 dividend yields

More to follow...