Sunday, April 13, 2014

Israeli Stocks with Dividends

Do you realize that since last summer, the Market Vectors Israel ETF (ISRA) has significantly outperformed the S&P 500? Israeli stocks were up over 20% whereas the stock market was up only about 12% over the same period.

Investors looking for dividends with Israeli stocks have more than half a dozen to choose from. There are several Israeli stocks with yields ranging from 0.3% to over 6%, according to the list at The dividends help reduce volatility and return invested capital faster.


One example is Teva Pharmaceutical Industries Ltd. (TEVA), which is the largest generic drug manufacturer in the world. The stock sports a yield of 2.3% and pays its dividends quarterly. It trades at  34 times trailing earnings and 11 times forward earnings. The company reported a quarterly earnings increase of 18.8% on a  revenue boost of 3.4%.


In the software sector, Magic Software Enterprises Ltd. (MGIC), with a trailing PE of 19.5 and a forward PE of 15, pays a yield of 2.8%. Latest quarterly earnings were up 10.3% on a 15.3% rise in revenues.


Another high yielding Israeli stock is the electronics company Elbit Systems Ltd. (ESLT) which also pays its dividends quarterly, carrying a yield of 2.0%. The company, which specializes in defense systems and products, has a trailing price to earnings ratio of 14, and a forward PE of 13. Earnings for the latest reported quarter dropped by 25% on a revenue reduction of 3.8%.

More Dividend Paying Israel 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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