Smart investors use their money to generate income by ensuring that while they are invested they are also getting additional payouts from their investment. One of the strategies you may consider is investing in Israeli dividend stocks. Many of the largest companies on the Tel Aviv Stock Exchange give dividend payments every 4-6 months, so while you are investing your money in the Israeli capital market, you’ll also be receiving cash payments as long as you hold the stock.
Over 175 Israeli stocks pay out dividends
Historically, dividend-paying stocks have provided more stability and resistance to stock market volatility. Here is a chart of the last 3 years’ performance of the Tel-Div 20 vs. the broader market index (Tel Aviv-100). The dividend index far outperformed the broader market, almost doubling its performance over time. Keep in mind, past performance is no guarantee of future results.
Another avenue to get stock exposure and receive dividend payments is to purchase a few of the individual stocks that pay dividends (some are listed below). Keep in mind that unlike some dividend stocks on Wall Street where the dividend payments are generally the same amount and paid out each quarter, some of the Israeli stocks listed below don’t give equal payouts and/or don’t pay out quarterly, so the dividend yields here reflect actual payouts over the past 12 months.
For more information on any of the stocks below, or to learn how to invest in these or other Israeli stocks and bonds, contact us at Wise Money Israel.
Stocks comprising the Tel Aviv Dividend 20 Index
| Company Name | Dividend Yield (past 12 months) | Sector | Market Cap ($ Millions) | Stock Capital Gain/Loss (Past 12 Months) | Analyst Recommendations (Firm, Target Price) | Closing Price (3/21/11; 0.01 NIS) | Stock Capital Gain/Loss (Year To Date) | Price Earnings Ratio | Company Description |
|---|---|---|---|---|---|---|---|---|---|
| Discount Investments | 23.3% | Investment and Holdings | 1619 | -20.4% | Outperform (Psagot; TP: 8800) | 6753 | -8.0% | 4.9 | A holding company engaged in various fields, including communications, technology, real estate, trade and services. Among the major holdings of Discount Investment: Cellcom, Netvision, Elron, Givune, Super-Sol and Koor Makhteshim Agan |
| Bezeq | 18.1% | Communications and Media | 7646 | 11.7% | Buy (IBI, Psagot x2 analysts, bmo; average TP: 1052); Market Perform (Clal Finance; TP: 970); Market Outperform (Bank Hapoalim) | 1010 | -6.7% | 11.1 | Telecommunications service provider – telephone, satellite, television, mobile operator and Internet |
| Ituran Location and Control | 16.0% | Commerce and Services | 357 | 5.1% | 5803 | -6.1% | 17.0 | Provides detection services for theft of vehicles and wireless communication products and services for locating stationary objects and related service | |
| Partner (Orange Israel) | 14.6% | Communications and Media | 2914 | -5.8% | Market Perform/Neutral (IBI, Psagot x2 analysts, Bank Hapoalim; average TP: 7415); Market Outperform (Dash Brokerage, Clal Finance; average TP: 7950) | 6670 | -4.6% | 3.9 | Mobile Communications Operator |
| Bayside Land | 13.4% | Real Estate and Construction | 479 | 6.5% | Buy (Harel Finance; TP: 90000); Market Perform/Neutral (IBI, Psagot; TP: 97250) | 85120 | -3.3% | 8.9 | Development, design and construction, rental and management of business and industrial parks, office buildings, etc. and residential development construction |
| Golf and Company | 13.1% | Commerce and Services | 218 | -9.1% | Outperform (Psagot, Meor Loski; average TP: 2615) | 1929 | -6.3% | 10.0 | Fashion Clothing: Designing, purchase, retail marketing and selling apparel products for men and women. Fashion House: design, purchase, retail marketing and sales of textile products in the home, such as bedding and linens, towels and bathrobes, blankets, bed covers and pillows, kitchen utensils and garden tools |
| Cellcom | 12.2% | Communications and Media | 3190 | -1.9% | Buy (Mizrachi Tfachot; TP: 12050); Market Perform/Neutral (IBI, Lieder, Psagot, Meitav, Bank Hapoalim; average TP: 11700) | 11400 | -1.0% | 8.8 | Owns and provides cellular mobile communications in Israel |
| Maabarot | 11.9% | Food | 133 | 2.1% | 4813 | -20.4% | 2.1 | Development, production and marketing of baby food, special food products and raw materials as well as the development, manufacture and marketing of dog and cat food. Manufactures milk substitutes and other products for calves and lambs. Produces dietary supplements, vitamins and organic foods, natural cosmetics and organic food treatment. | |
| Delek Automotive | 11.8% | Commerce and Services | 1132 | 4.8% | Outperform (Clal Financial; TP: 5000); Market Perform/Neutral (IBI, Psagot; TP: 4400) | 4357 | -13.0% | 9.4 | Importer and distributer of Mazda and Ford vehicles in Israel |
| Netvision | 11.4% | Communications and Media | 415 | 12.7% | Hold/Neutral (IBI, Mizrachi Tefachot; TP: 4450) | 4672 | 1.6% | 17.4 | Provides Internet connectivity services (ISP), telephone services and managed services. Also provides Internet e-commerce software, design, construction and delivery of Web applications and development software solutions. |
| Sella Capital Real Estate | 10.3% | Real Estate and Construction | 82 | 16.2% | 557 | -12.7% | 22.9 | Real Estate Investment Fund investing in rental properties | |
| DS Apex Holdings | 10.2% | Financial Services | 218 | -23.5% | 2020 | -13.7% | 10.4 | Manages of investment funds, portfolio management, mutual funds and pension funds. Underwriting, management and support of securities offerings and distribution of securities. Also engaged in economic consulting and brokerage transactions, and provides stock exchange member services and activities. | |
| Clal Industries | 9.4% | Investment and Holdings | 1224 | 14.7% | Outperform (Psagot; TP: 2940) | 2763 | -3.5% | 25.2 | Holding company investing in paper and cement industries, telecom, hi-tech, retail energy and venture capital sectors |
| Formula Systems | 8.6% | Computers | 242 | 36.2% | 6320 | -4.9% | 8.2 | A software house providing application development, systems integration, consulting and training services in outsourcing. Also provides integrated software solutions. Among the major holdings of Formula Systems, include the public companies Matrix, Magic, Sapiens and Formula Vision. | |
| Scailex Corporation | 8.2% | Communications and Media | 515 | -19.2% | 6555 | -16.2% | 12.5 | Mobile operators: import, marketing and maintenance services for mobile phones manufactured by Samsung Corporation. In addition, Scailex sells parts and accessories for mobile phones manufactured by Samsung. Marketing, sale and upgrade of wireless phones and accessories as well as providing maintenance services for mobile phones for end customers of Cellcom. Also operates in asset management and location of business opportunities. | |
| REIT 1 | 7.6% | Real Estate and Construction | 181 | 14.1% | Buy (IBI; TP: 750) | 722.8 | -6.7% | 20.3 | A real estate investment fund. The main aim of the fund is holding and managing real-estate, i.e. office buildings, shopping centers, industrial buildings, residential apartments for rent, etc., for purposes of profit. The company is committed under Israeli REIT rules to hold at least 95% of its assets in Israeli rental real estate. |
| Koor Industries | 7.1% | Investment and Holdings | 1073 | -22.9% | Market Perform (Bank Hapoalim; TP: 8920) | 8037 | -7.1% | -7.1 | Operates primarily in the telecommunications, military electronics, agro-chemicals and other chemicals, tourism, technology and venture capital investments fields. Among the major holdings include Koor Makhteshim Agan and Telrad. |
| Melisron | 6.3% | Real Estate and Construction | 541 | -0.5% | Outperform (Psagot; TP: 9500); Underperform (Excellence; TP: 8000) | 8472 | -15.0% | 22.2 | Owner and operator of commercial space and offices for rent in Kiryat Bialik, yielding most of its revenue, and is the main asset of the company. In addition Melisron owns subsidiary Ofer Raanana Properties, which owns and operates the Renanim Mall shopping center in Raanana. |
| ICL-Israel Chemical | 6.0% | Chemical, Rubber and Plastic | 20703 | 23.2% | Buy (Psagot, Meitav, Lieder, Migadal; average TP: 6438); Neutral (IBI; TP: 5800) | 5796 | -4.7% | 20.4 | Operates primarily in the special chemical fertilizers. Produces Dead Sea potash, operates salt mining and extraction of underground mines in Spain and England and markets it worldwide. Produces bromine as a byproduct of the potash production process especially in Sodom, Israel. Produces Agricultural fertilizers and phosphates. Other activities include water desalination and magnesium production. |
| Ashtrom Properties | 5.8% | Real Estate and Construction | 189 | 46.0% | 862 | -12.9% | 7.1 | Engaged in land purchase, development and construction of industrial building, trade, hotels and offices designed primarily for rent. Ashtrom Group geographic distribution of assets are spread across the country, and the Group also works outside of Israel. |
