Generating Income From the Israeli Market

Evan Liberman Analysis, Articles, Ideas, Invest in Israel, Israeli stocks 0 Comments

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 of over 3% per year, and 12 of those listed below pay double-digit dividends yearly. Investing in stocks carries associated risk of market volatility, so before making decisions on which stocks to purchase, choose wisely by consulting an expert so you can ensure that your choices are in-line with your financial needs, etc. The list of dividend stocks below make up the Tel-Div 20, an Israeli Stock Exchange index comprised of shares that deliver the highest dividend yields (and also meet strict high market capitalization, liquidity and free float % rules of the Stock Exchange). This index can be purchased as one stock transaction via one of the many ETFs that track the index ,with one small commission through your Israeli investment account. This strategy provides stock diversification over many large, dividend-paying companies from various sectors.

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.

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