Sunday, December 29, 2013

Top High Yield Israeli Stocks

The success of the IPO for the company, (WIX), based in Tel Aviv, Israel, has drawn attention to Israeli stocks. Wix, which is in the business of providing website creation services, rose over 70% since going public less than two months ago. If you look at the Market Vectors Israel ETF (ISRA) and compare it to the S and P 500 over the last six months, you would see that the ETF has outperformed the general market by a few percentage points.

So if an investor wants to invest in Israeli stocks, but want to reduce your risk by limiting yourself to dividend paying stocks, there are about ten Israeli stocks with yields ranging from 0.3% to over 12%, according to the list at


One example is Teva Pharmaceutical Industries Ltd. (TEVA), which is the largest generic drug manufacturer in the world. The stock sports a yield of 2.7% and pays its diviends quarterly. It trades at  28.1 times trailing earnings and 8.0 times forward earnings. The company generated earnings per share of 1.41 on a quarterly revenue increase of 1.7%.

Defense Electronics

Another high yielding Israeli stock is the electronics company Elbit Systems Ltd. (ESLT) which also pays its dividends quarterly, carrying a yield of 2.3%. The company, which specializes in defense systems and products, has a trailing price to earnings ratio of 12.6, and a forward PE of 12.2. Earnings for the latest quarter shot up 25.5% on a revenue boost of 7.8%.


In the software sector, Magic Software Enterprises Ltd. (MGIC), with a trailing PE of 16.6 and a forward PE of 12.1, pays a yield of 2.8%. Latest quarterly earnings were up 1.8% on a 9.3% rise in revenues.

More Dividend Paying Stocks

For a free list of dividend paying Israeli stocks, which includes the PE, forward PE, PEG ratio, yield, and business, go to

Disclosure: Author didn't own any of the above at the time the article was written.


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