income generation - al ramz€¦ · investing style “do you know the only thing that gives ......

THEMATIC RESEARCH Research and Advisory

Wednesday, December 20, 2017

Inside this Report

The Summary 2

The Review 3

The Methodology 5

The Selection 7

Feature: The Wild Cards

9

Annex 10

Disclosure on 4

Income Generation

Investing Style

“Do you know the only thing that gives me pleasure? It’s to see my dividends

coming in.” - John D. Rockefeller

The Summary

For the year to come, these are the names to consider if you are looking for simply High-yielding Stocks…

But, if you are looking for something more Sustainable...

Which names are we talking about here? We say, look out for ALDAR, ADCB, DEPA, DIB and FAB for potential upside and return/start of distributions. Aldar could be looking at enhanced dividends, thanks to some AED500mn available pool coming from the Development Business. ADCB and DEPA could potentially benefit from one-off recoveries, which could either be used to shore up capital or to enrich distributions. DIB has been having another solid year—paving the way for the Bank to maintain payout of as much as 70%. Nearly everyone is thinking which way FAB’s dividend policy will go: FGB’s or NBAD’s? Settling somewhere near the mid-point should keep everyone happy, and could potentially yield shareholders 5%-6%.

Some could be what we would say as potential Wild Cards.

One thing to look out for: Higher Interest Rates could rain on the Dividend Parade

On the recently concluded Fed Meeting, the benchmark rate was raised for the third time this year by 25bps, putting the Fed Funds Rate currently at 1.5%. The US central bank is targeting three (3) more rate hikes in 2018. In short, borrowing costs are trending higher.

While the UAE has a unique culture in terms of dividends (even firms with losses would still distribute dividends no matter what), the reality of rising funding costs could make the decision makers pause and re-think their corporate actions. Extra-generous distributions may not be sustainable, most specially for those with significant financial leverage.

In light of the Dividend Season, which is practically at the door as of this writing, we are publishing our Income Generating or Dividend Stock Picks for 2018. These picks are again, based on: (1) a simple High-Low Ranking of Ratios and (2) a Four-tier Criteria anchored on Dividend Growth. But before that, let us look back and track how our 2017 selections have performed, thus far.

Now, for the Brave Souls out there, here are those with High Yields AND Out-of-Range Payouts…

The selection above was based on High Dividend Yields and Payout Ratios of 30% - 70%. However, there are interesting names outside this payout ratio range that might just deliver attractive distributions for the year 2017. The downside to these names though is that due to their exceedingly high payout ratios, among other things, there is a potential for any of these names to not sustain their current indicative dividend yields, which average at ca. 10% (with an average payout ratio of ca. 115%).

The Review of the 2017 Picks

On 16 January 2017, we distributed our Income Generating or Dividend Stock Picks in time to provide ideas for the 2016 Dividend Season. As we close the year 2017, we look back and see how these picks have performed to date.

First, let us track our picks which were selected by ranking the stocks according to dividend yield and cross-checked with the payout ratio. As the table below shows, this group of stock picks recorded an average Price Performance (measured from 15 January 2017 until 15 December 2017) of 11.52%, and an average Total Return (including the dividends paid) of 18.64%.

As point of comparison, the UAE market’s price performance (as represented by the MSCI AE Price Index) has fared by negative 5.61%, for the same investment period.

Company Selection Review

Price Performance Total Return Annualized Return Market Cap-Weighted Return

1 KICO 131.36% 144.70% 156.44% 0.41%

2 WAHA -18.06% -8.80% -9.51% -0.32%

3 DIC -1.18% 3.76% 4.07% 0.40%

4 DNIR 27.08% 37.50% 40.54% 0.14%

5 FGB -2.27% 5.30% 5.73% 3.22%

6 RAKPROP -2.70% 4.05% 4.38% 0.06%

7 SIB -4.29% -4.29% -4.63% -0.16%

8 SCIDC -0.93% 6.48% 7.01% 0.04%

9 AIRARABIA -12.23% -7.19% -7.78% -0.43%

10 ADIB -1.57% 4.84% 5.23% 0.60%

Selection Average 11.52% 18.64% 20.15% 3.97%

Market data courtesy: Thomson Reuters

Market data as of: 15 December 2017

Similarly, let us look at our picks selected by scoring via the Dividend Growth Style. As the table below shows, this group of stock picks recorded an average Price Performance (measured from 15 January 2017 until 15 December 2017) of 14.23% and an average Total Return (including the dividends paid) of 19.83%.

Company Selection Review

Price Performance Total Return Annualized Return Market Cap-Weighted Return

1 KICO 131.36% 144.70% 156.44% 0.80%

2 NCTH -8.29% -8.29% -8.96% -0.24%

3 ADIB -1.57% 4.84% 5.23% 1.16%

4 TKFL 17.65% 21.41% 23.15% 0.22%

5 JULPHAR 3.45% 10.68% 11.55% 0.55%

6 SIB -4.29% -4.29% -4.63% -0.31%

7 ADAVIATION -5.42% 0.34% 0.37% 0.01%

8 ALDAR -16.54% -12.41% -13.41% -4.37%

9 DIC -1.18% 3.76% 4.07% 0.77%

10 DNIR 27.08% 37.50% 40.54% 0.27%

Selection Average 14.23% 19.83% 21.43% -1.14%



Thematic Research Income Generation Investing Style

The Review of the 2017 Picks

We know that Al Khaleej Investment Company, aka KICO, was a significant factor in our outperformance of the benchmark.

In a market mostly characterized by the dominance of select favorites, KICO could easily have been ignored. But as the gurus say, proper investing is not about what is hot but about what is right.

In both the measures we employed, KICO kept sprouting up as among if not the top pick. This was owed to the then exceptionally high dividend yield. This was further supported by the company’s stable history of operations and cash distributions and reasonable sustainable growth. We also drew attention to KICO’s unresolved disputes—to which an unfavorable decision for KICO would have had a significant impact on its book value. To date, no resolution has been reached.

If the share had been picked up right off the bat, price performance till date would be beyond 130%. Add to this the Cash Dividends distributed in 2016 of AED0.15 per share, then Total Return for 2017 approaches 150%.

KICO: ca. 150% Return in a Year!


Adjusting the performance of our selections to account for their respective market capitalizations, we would still have generated alphas of 9.58% on those picks using the Simple Style and 4.47% on those selected using the Dividend Style Growth Strategy.

The Selection Methodology

Keeping It Simple:

A selection based on a simple High-to-Low Ranking of Indicative Dividend

Ranking Based on Indicative Dividend Yields

We say indicative as we define the metric to be the latest cash distribution (i.e., 2016 distribution) taken as a ratio of the latest market price.

The ranking has been viewed two-ways:

1. Based on the indicative dividend yield, and;

2. Fine-tuned to consider a payout ratio within the range of 30% to 70% (representing reasonable distances to a 50% payout ratio). We set the base at 50% as it level is the unwritten but accepted standard of UAE cash distributions. Further, we thought to factor in +/- 20% to the base rate of 50% to come up with an optimal payout range of 30% to 70%. We believe that paying below 30% is relatively too low, and payout beyond 70% could be fairly challenging to sustain, especially for those which have significant financial leverage.

A Dividend Growth Style of Scoring

A straight forward ranking might just be too simplistic. And in case, there could be something said for the Holy Grail of Dividend Investing, which is to find companies which have:

1. Generous Cash Distributions

2. Growth Potential

3. Consistent Operations

4. Long and Stable History of Distributions.

The trade-off between growth and dividends makes it very challenging to find stocks with both a high payout ratio and solid growth prospects. The more a company pays out in dividends, the less it has to reinvest in growth.

Management must be very efficient with its capital allocation policies to have both a high dividend payout ratio and solid growth prospects. There is less room for error.

Finding businesses that consistently pay steady or rising dividends and have safe operations is likewise, difficult. Strong competitive advantages in the business world are quite rare.


Levelling Up:

A selection based on Four Major Metrics: High Indicative Yield,

Sustainable Growth Ratio, Consistent Earnings, and Long and Stable Dividend

History

The Basics

Both selection methods start off with the inclusion of the 131 listed shares in our Monitor Universe. These shares are now expanded to include not only those domiciled in the United Arab Emirates but also those which are cross-listed in the local markets.

The Selection Methodology

A Dividend Growth Style of Scoring


Stock Selection Universe All shares listed and cross-listed on the UAE Exchanges: Abu Dhabi Stock Exchange (ADX) and Dubai Financial Market (DFM). Also included are DEPA and DPW, which are listed on NASDAQ Dubai.

Exclusions

Our sample has excluded the following:

Companies with no historical record and/or meaningful data from 2011 thereafter.

Companies with no cash distributions in the last financial year (2016).

Indicators and Benchmarks Used

Indicator Benchmark

Scheme Weight

Generous Distribution Implied Dividend Yield * Within Sample Average 40%

Growth Potential Sustainable Growth Rate Within Sample Average 20%

Consistent Operations Earnings Volatility Within Sample Average 20%

Dividend History Frequency of Distribution in the Last Six (6) Years Within Sample Average 20%

The score for the Dividend Yield has been scaled to consider the probability of distribution, considering the level of latest Payout Ratio. The following are the probabilities assigned for the ranges of Payout Ratios:

Payout Ratio <= 50%: 100% Probability of Distribution

75% <= Payout Ratio > 50%: 75% Probability of Distribution

100% <= Payout Ratio > 75%: 50% Probability of Distribution

Payout Ratio > 100%: 25% Probability of Distribution

The Selection: Based on Dividend Yield Ranking

Company Sector Selection Attributes

Dividend Yield Trailing PE Price/Book Payout Ratio

DNIR Insurance 8.20% 4.74 0.73 1 38.84%

EIC Insurance 7.69% 7.83 0.86 2 65.21%

DAMAC Property 7.53% 6.36 1.50 3 47.86%

DRIVE Consumer 7.50% 7.45 1.24 4 55.90%

SCIDC Construction 7.48% 8.80 0.42 5 65.82%

MANAZEL Property 7.27% 6.06 0.51 6 44.86%

DIB Banks 7.27% 8.51 1.73 7 61.78%

8 RAKPROP Property 6.94% 8.45 0.38 58.69%

9 ALLIANCE Insurance 6.52% - - 51.45%

10 ADIB Banks 6.45% 6.55 1.19 42.28%

11 BOS Banks 6.28% 6.58 0.65 41.33%

12 FCI Construction 6.25% 8.95 0.33 55.96%

ADCB Banks 5.84% 8.85 1.31 13 51.29%

KICO Finance & Investments 5.77% 6.43 0.81 14 37.12%

AIRARABIA Transport & Logistics 5.65% 10.09 1.00 15 56.94%

6.84% 7.55 0.90 SELECTION AVERAGE 51.69%




The Scorecard: Dividend Growth Investing Style

Company Sector Score

Selection Attributes

Latest Market Price

Dividend Yield

Payout Ratio Annualized

ROE Sustainable

Growth Ratio Earnings Volatility

Distribution Frequency

Trailing PE Price/Book

ADIB Banks 68.74 3.80 6.45% 42.28% 18.23% 9.64% 5.64% 6 6.55 1.19

DAMAC Property 65.28 3.32 7.53% 47.86% 23.56% 13.92% 8.85% 3 6.36 1.50

SUDATEL Telecommunications 63.39 0.59 6.22% 23.20% 11.37% 9.02% 6.20% 5 3.73 0.37

ADAVIATION Transport & Logistics 63.13 2.75 6.18% 28.26% 9.94% 7.26% 7.61% 6 4.57 0.45

BOS Banks 61.53 1.22 6.28% 41.33% 9.88% 5.83% 3.43% 5 6.58 0.65

ALDAR Property 61.31 2.20 5.00% 33.50% 11.30% 7.79% 6.09% 6 6.70 0.76

DRIVE Consumer 61.11 8.00 7.50% 55.90% 16.67% 8.86% 18.00% 6 7.45 1.24

DIC Finance & Investments 58.51 2.42 4.96% 42.58% 10.25% 5.96% 6.38% 6 8.59 0.88

DNIR Insurance 57.89 3.05 8.20% 38.84% 15.38% 5.30% 10.75% 6 4.74 0.73

TKFL Insurance 57.80 5.00 3.20% 31.59% 16.79% 11.24% 9.12% 6 9.87 1.66

UNB Banks 57.29 3.81 5.25% 36.01% 8.99% 5.70% 8.62% 6 6.86 0.62

DIB Banks 56.46 6.20 7.26% 61.78% 20.29% 5.75% 10.52% 6 8.51 1.73

AGTHIA Consumer 56.24 4.80 3.13% 40.88% 12.32% 7.99% 5.36% 6 13.08 1.62

ADCB Banks 56.11 6.90 5.80% 51.29% 14.72% 7.09% 8.85% 6 8.85 1.31

ARMX Transport & Logistics 56.09 4.41 3.63% 58.43% 17.48% 7.71% 3.49% 6 16.10 2.81

5.77% 42.25% 14.48% 7.93% 7.93% 6 7.90 1.17 SELECTION AVERAGE




Feature: The Wild Cards

There are names in our universe of stocks that may not rank as high as those presented earlier and/or may offer some surprises in the form of upside to the distributions. We are featuring a handful of these stocks, namely: ALDAR, ADCB, DEPA, DIB and FAB.

In 2016, Aldar distributed AED0.11 per share or 11%. The name has consistently increased its distribution, in a measured manner, since 2012 when it distributed AED0.05 per share. For the past three years, the average payout ratio has been at ca. 29%. Based on this alone and our in-house estimates, 2017 distribution could be in the area of AED0.09 per share.

The potential upside could stem from the Discretionary Component of Aldar’s Dividend Policy (ca. 20%-40% of Total Distribution), which is tied to its Development Business. As of 30 September, the Development Business has already delivered some AED500mn (Ansam, Hadeel and Nareel projects)—a portion of this could be the source of Aldar’s enhancement to its cash distribution.

A few days before the publication of this report, news came out that Mana Al Sanea, the figure behind the troubled Saad Group, is keen to settle debts amounting to USD4bn to expedite his release from his current detention. ADCB is one of the several creditors of the Saad-Gosaibi affair, and stands to recognize some recoveries pending the final agreements and settlements.

Any of these recoveries could be used for various goals: shore up capital, distribute as dividends, etc. If ADCB follows the lead of others such as DEPA which used the one-offs to distribute dividends, there could be a potential upside to our estimated payout of ca. 50%.

In the May 2017 AGM, and in light of the new management’s effort to maximize shareholders’ value, DEPA’s BOD passed a Dividend Policy which stated a 25%-50% payout ratio.

Given our 2018F net profit and the proposed range, this implies a range of DPS of AED0.03-AED0.05 in 2018. Although its very hard to predict favorable settlement of legacy projects, this could open the door for a series of potential one-off profits as was the case for the dividend paid this year of AED0.025.

At the rate DIB is going, profits of ca. AED4bn for FY17 is quite a strong possibility. Given this, and given its four-year (4y) history of paying out 60%-65% as Cash Dividends (after interest payments and other deductions), investors could see potentially cash distributions of AED0.45 upwards.

A CD in the vicinity of 45% would imply a DVS/EPS of ca. 64% and a yield of 7.65% (based on LMP). Should DIB repeat 2016’s payout of nearly 70%, dividends could be closer to AED0.50, implying a yield of ca. 8% - a very attractive notion, indeed!

FAB did not have a rank nor a score in this issue as technically, the Bank does not have a dividend record (post-merger) yet unlike its predecessors, FGB and NBAD. But the fact that FGB and NBAD both had stable histories of dividend distributions compel us to include FAB among our Wild Cards.

With a CAR of above 14%, FAB could very well afford to pay out ca. 50% to 60% - a level representing the mid-point of FGB’s and NBAD’s historical payout ratios. Should actual payout approximate this, it would imply a yield of ca.5% to 6% (based on LMP and our 2017 EPS estimate of AED0.96 ).

Annex: Ranking AttributesAnnex: Ranking AttributesAnnex: Ranking Attributes

Company Reuters Instrument

Code (RIC) Latest Market Price (AED)

Ranking Attributes

Dividend Yield Cash Dividends per Share Payout Ratio

ARIG ARIG.DU 1.45 12.66% 0.18 99.88%

WAHA WAHA.AD 1.75 11.43% 0.20 128.53%

GCEM GCEM.AD 0.92 10.87% 0.10 156.97%

NCC NCC.DU 2.90 8.62% 0.25 NEG

DNIR DNIN.DU 3.05 8.20% 0.25 38.84%

UCC UCC.AD 1.35 8.15% 0.11 96.36%

ALAIN AAIC.AD 38.00 7.89% 3.00 91.55%

EIC EIC.AD 6.50 7.69% 0.50 65.21%

DAMAC DAMAC.DU 3.32 7.53% 0.25 47.86%

DRIVE DRIV.AD 8.00 7.50% 0.60 55.90%

RAKWCT RAKC.AD 1.00 7.50% 0.08 105.98%

SCIDC SCID.AD 1.07 7.48% 0.08 65.82%

DIN DINC.DU 3.35 7.46% 0.25 78.69%

ASCANA ASCI.DU 2.31 7.36% 0.17 79.00%

MANAZEL MANZp.AD 0.55 7.27% 0.04 44.86%

DIB DISB.DU 6.19 7.27% 0.45 61.78%

JULPHAR GPHI.AD 2.29 6.99% 0.16 126.60%

RAKPROP RPRO.AD 0.72 6.94% 0.05 58.69%

DU DU.DU 5.00 6.80% 0.34 93.23%

QIC QIC.AD 1.04 6.73% 0.07 113.70%

ALLIANCE ALL.DU 383.50 6.52% 25.00 51.45%

ADIB ADIB.AD 3.80 6.45% 0.25 42.28%

RAKBANK RAKB.AD 4.70 6.38% 0.30 70.77%

BOS BOS.AD 1.22 6.28% 0.08 41.33%

FCI FCI.AD 0.96 6.25% 0.06 55.96%

GFH GFH.DU 1.60 6.25% 0.10 22.50%

SUDATEL SDTL.AD 0.60 6.12% 0.04 23.20%

ADAVIATION ADAV.AD 2.79 6.09% 0.17 28.26%

RAKCEC RKCE.AD 2.52 5.95% 0.15 127.12%

ADCB ADCB.AD 6.85 5.84% 0.40 51.29%

KICO KICO.AD 2.60 5.77% 0.15 37.12%

AIRARABIA AIRA.DU 1.24 5.65% 0.07 56.94%

OIC OIC.DU 1.80 5.56% 0.10 56.66%

NGI NGIN.DU 2.16 5.56% 0.12 52.15%

MASQ MASB.DU 72.50 5.52% 4.00 33.74%

SALAM_BAH SALAM.DU 0.92 5.43% 0.05 67.63%

UNB UNB.AD 3.81 5.25% 0.20 36.01%

MAZAYA MAZA.DU 1.89 5.14% 0.10 49.30%

ALDAR ALDR.AD 2.20 5.00% 0.11 33.50%

DIC DINV.DU 2.42 4.96% 0.12 42.58%

EMIRATESNBD ENBD.DU 8.15 4.91% 0.40 29.89%



Dividend Yield has been calculated based on the latest cash distribution and cut-off date market price.

Payout Ratio has been calculated based on the latest cash distribution and trailing profits.

Annex: Ranking AttributesAnnex: Ranking AttributesAnnex: Ranking Attributes

Company Reuters Instrument

Code (RIC) Latest Market Price (AED)

Ranking Attributes

Dividend Yield Cash Dividends per Share Payout Ratio

DRC DRC.DU 14.50 4.83% 0.70 49.56%

RAKCC RKCC.AD 0.63 4.76% 0.03 NEG

CBD CBD.DU 4.20 4.76% 0.20 58.01%

ADSB ADSB.AD 2.11 4.74% 0.10 31.91%

EMAARMALLS EMAA.DU 2.13 4.69% 0.10 66.45%

ETISALAT ETEL.AD 17.10 4.68% 0.80 79.87%

ABNIC ABNI.AD 2.20 4.55% 0.10 63.71%

ADNH ADNH.AD 2.90 4.21% 0.12 49.97%

ADNIC ADNI.AD 3.60 4.17% 0.15 35.63%

FOODCO FOOD.AD 4.94 4.05% 0.20 25.78%

NMDC NMDC.AD 3.75 4.00% 0.15 91.36%

DHAFRA DHAF.AD 3.80 3.95% 0.15 44.13%

ARMX ARMX.DU 4.41 3.63% 0.16 58.43%

NBQ NBQ.AD 2.80 3.57% 0.10 52.82%

TABREED TABR.DU 1.82 3.57% 0.07 45.41%

TAKAFUL-EM TKFE.DU 2.00 3.50% 0.07 200.68%

FH FH.AD 1.72 3.49% 0.06 65.12%

ALRAMZ ALRAMZ.DU 1.46 3.42% 0.05 28.97%

AFNIC AFNI.AD 300.00 3.33% 10.00 29.35%

INVESTB INVB.AD 2.50 3.23% 0.08 48.55%

FBI FBI.AD 1.56 3.21% 0.05 28.86%

TKFL TKFL.AD 5.00 3.20% 0.16 31.59%

SG SG.AD 1.25 3.20% 0.04 12.88%

AGTHIA AGTH.AD 4.97 3.02% 0.15 40.88%

RAPCO RAKP.AD 3.40 2.94% 0.10 164.25%

RAKNIC RAKN.AD 3.69 2.71% 0.10 32.86%

ERC ERC.DU 4.05 2.47% 0.10 NEG

EMAAR EMAR.DU 6.97 2.15% 0.15 18.02%

AGLTY AGLT.DU 8.57 2.13% 0.18 29.17%

SICO SIC.AD 3.49 2.01% 0.07 25.44%

GMPC GMPC.AD 2.50 2.00% 0.05 2.38%

UFC UFC.DU 5.15 1.94% 0.10 13.25%

DPW DPW.DI 89.92 1.55% 1.39 32.61%

NBF NBF.AD 5.00 1.50% 0.08 25.60%

GULFA GULF.DU 2.92 1.37% 0.04 NEG

UNIKAI UNIK.DU 8.44 1.18% 0.10 NEG

AWNIC AWNI.AD 12.75 1.18% 0.15 54.08%

AMANAT AMANT.DU 1.35 1.11% 0.02 90.31%

ASNIC ASNC.DU 4.55 1.10% 0.05 190.35%

ORDS ORDS.AD 80.00 0.44% 0.35 3.51%





Annex: Scorecard AttributesAnnex: Scorecard AttributesAnnex: Scorecard Attributes Company Score

Scorecard Attributes

Cash Dividend per Share

Dividend Yield Payout Ratio Growth Ratio Earnings Volatility Distribution Frequency

ADIB 68.74 0.25 6.45% 42.28% 9.64% 5.64% 6

DAMAC 65.28 0.25 7.53% 47.86% 13.92% 8.85% 3

SUDATEL 63.39 0.04 6.22% 23.20% 9.02% 6.20% 5

ADAVIATION 63.13 0.17 6.18% 28.26% 7.26% 7.61% 6

BOS 61.53 0.08 6.28% 41.33% 5.83% 3.43% 5

ALDAR 61.31 0.11 5.00% 33.50% 7.79% 6.09% 6

DRIVE 61.11 0.60 7.50% 55.90% 8.86% 18.00% 6

DIC 58.51 0.12 4.96% 42.58% 5.96% 6.38% 6

DNIR 57.89 0.25 8.20% 38.84% 5.30% 10.75% 6

TKFL 57.80 0.16 3.20% 31.59% 11.24% 9.12% 6

UNB 57.29 0.20 5.25% 36.01% 5.70% 8.62% 6

DIB 56.46 0.45 7.26% 61.78% 5.75% 10.52% 6

AGTHIA 56.24 0.15 3.13% 40.88% 7.99% 5.36% 6

ADCB 56.11 0.40 5.80% 51.29% 7.09% 8.85% 6

ARMX 56.09 0.16 3.63% 58.43% 7.71% 3.49% 6

EMIRATESNBD 55.99 0.40 4.94% 29.89% 11.68% 18.98% 6

AIRARABIA 55.18 0.07 5.65% 56.94% 3.31% 3.27% 6

CBD 54.02 0.20 4.76% 58.01% 4.85% 4.68% 6

INVESTB 53.81 0.08 3.21% 48.55% 4.56% 3.01% 6

EMAAR 52.90 0.15 2.13% 18.02% 10.63% 10.02% 6

MASQ 52.73 4.00 5.52% 33.74% 6.68% 17.03% 6

NBF 51.45 0.08 1.50% 25.60% 7.71% 4.47% 6

RAKPROP 50.67 0.05 6.94% 58.69% 1.92% 3.08% 5

SCIDC 50.59 0.08 7.48% 65.82% 1.49% 4.74% 5

SICO 49.86 0.07 2.01% 25.44% 8.67% 10.05% 6

RAKWCT 49.16 0.08 7.50% 105.98% 0.52% 3.36% 6

JULPHAR 48.90 0.16 7.08% 126.60% 1.04% 2.86% 6

TABREED 48.72 0.07 3.51% 45.41% 4.39% 6.12% 5

NBQ 48.54 0.10 3.33% 52.82% 3.71% 5.37% 6

DIN 47.88 0.25 7.46% 78.69% 2.17% 12.27% 6

RAKNIC 47.38 0.10 2.71% 32.86% 7.40% 13.82% 6

DRC 47.25 0.70 4.83% 49.56% 6.22% 15.61% 6

RAKCEC 46.66 0.15 5.77% 127.12% 105.00% 10.30% 5

KICO 46.50 0.15 5.77% 37.12% 6.08% 19.10% 6

UCC 46.48 0.11 8.15% 96.36% 0.17% 3.83% 5

FOODCO 46.28 0.20 4.05% 25.78% 10.12% 26.69% 6

DU 45.38 0.34 6.73% 93.23% 2.51% 6.58% 6

ALRAMZ 44.72 0.05 3.42% 28.97% 10.58% 4.43% 1

ETISALAT 44.17 0.80 4.57% 79.87% 3.57% 9.78% 6

ALAIN 43.49 3.00 7.89% 91.55% 1.17% 19.03% 6

ORIENT 42.81 20.00 NM 28.56% 9.68% 12.62% 6

QIC 42.30 0.07 6.73% 113.70% 0.47% 6.26% 5

RAKBANK 42.12 0.30 6.38% 70.77% 2.26% 9.96% 6

ADNH 42.05 0.12 4.52% 49.97% 1.47% 10.83% 6

EMAARMALLS 41.76 0.10 4.67% 66.45% 3.69% 1.13% 2

ALLIANCE 41.61 25.00 NM 51.45% 4.60% 5.65% 6

GCEM 41.51 0.10 10.53% 156.97% -2.93% 4.34% 5

ADSB 41.47 0.10 5.00% 31.91% 9.25% 25.01% 4

MANAZEL 41.46 0.04 7.41% 44.86% 4.18% 6.25% 1

OIC 41.35 0.10 5.56% 56.66% 1.79% 14.78% 6

FCI 40.67 0.06 6.25% 55.96% 2.29% 7.18% 2

WAHA 40.29 0.20 11.43% 128.53% 0.82% 22.21% 6

ORDS 39.10 0.35 0.44% 3.51% 13.29% 59.92% 6

RAKCC 38.96 0.03 4.76% NEG 0.47% 1.84% 5

ADNIC 36.97 0.15 4.41% 35.63% 7.27% 56.96% 4

NCC 36.91 0.25 8.62% NEG 0.01% 12.37% 6

EIC 36.67 0.50 8.33% 65.21% 2.22% 20.63% 6

RAPCO 36.54 0.10 2.94% 164.25% 0.33% 10.13% 6

SALAM_BAH 36.03 0.05 5.38% 67.63% 1.63% 16.73% 5

FH 35.80 0.06 3.49% 65.12% -0.02% 8.69% 6

SIB 34.91 NM - NM 2.20% 5





Annex: Scorecard AttributesAnnex: Scorecard AttributesAnnex: Scorecard Attributes Company Score

Scorecard Attributes

Cash Dividend per Share

Dividend Yield Payout Ratio Growth Ratio Earnings Volatility Distribution Frequency

AFNIC 34.36 10.00 NM 29.35% 6.79% 10.03% 4

DPW 34.18 1.39 1.56% 32.61% 6.94% 87.74% 6

SG 33.35 0.04 3.20% 12.88% 11.93% 24.18% 2

ASCANA 31.74 0.17 NM 79.00% 1.36% 10.32% 6

TAKAFUL-EM 30.47 0.07 3.52% 200.68% 1.20% 5.67% 2

UFC 30.41 0.10 1.94% 13.25% 8.20% 35.99% 4

DHAFRA 30.24 0.15 3.95% 44.13% 3.16% 41.47% 5

NCTH 29.91 NM - NM 8.45% 5

NMDC 29.48 0.15 4.00% 91.36% 0.42% 48.44% 6

DFM 28.63 NM - NM 1.71% 3

GMPC 26.32 0.05 2.00% 2.38% 83.65% 78.46% 6

AGLTY 26.15 0.18 NM 29.17% 4.61% 351.92% 6

FBI 25.38 0.05 NM 28.86% 5.16% 6.04% 1

AMANAT 24.77 0.02 1.11% 90.31% 0.04% 4.57% 2

NGI 24.59 0.12 NM 52.15% 2.87% 19.26% 6

MAZAYA 23.22 0.10 NM 49.30% 4.73% 16.36% 3

GFH 22.97 0.10 6.21% 22.50% 18.32% 82.49% 1

GULFA 22.81 0.04 1.37% NEG -0.50% 7.52% 2

DEPA 21.47 0.00 0.00% 0.00% 11.01% 16.50% 0

ARKAN 20.48 NM - NM 3.56% 1

AWNIC 20.00 0.15 NM 54.08% 2.95% 31.72% 6

ABNIC 19.84 0.10 NM 63.71% 2.50% 12.70% 3

ALFIRDOUS 19.44 NM - NM 0.71% 0

DEYAAR 19.18 NM - NM 1.02% 0

AJMANBANK 18.71 NM - NM 1.62% 0

ARIG 18.36 0.18 12.66% 99.88% -0.31% 22.88% 2

ASNIC 17.91 0.05 NM 190.35% 0.60% 23.45% 5

DXBE 17.54 NM - NM 3.07% 0

AMAN 16.80 NM - NM 8.16% 1

EIB 16.67 NM - NM 4.16% 0

EIBANK 16.06 NM - NM 17.42% 3

TNI 15.54 NM - NM 5.58% 0

AMLAK 15.48 NM - NM 5.64% 0

GCIC 15.24 NM - NM 5.95% 0

BILDCO 14.55 NM - NM 6.82% 0

WATANIA 14.54 NM - NM 6.83% 0

DARTAKAFUL 13.82 NM - NM 7.72% 0

ESHRAQ 13.63 NM - NM 16.30% 2

UAB 13.33 NM - NM 25.15% 4

SHUAA 12.76 NM - NM 9.05% 0

ALSALAMSUDAN 12.05 NM - NM 14.10% 1

METHAQ 11.66 NM - NM 10.42% 0

CBI 10.63 NM - NM 11.72% 0

SALAMA 10.21 NM - NM 12.24% 0

UNION 9.95 NM - NM 12.56% 0

ERC 9.80 0.10 NM NEG -0.40% 21.08% 2

AKIC 9.19 NM - NM 13.51% 0

UIC 8.06 NM - NM 19.09% 1

DANA 7.68 NM - NM 15.40% 0

MARKA 6.84 NM - NM 16.45% 0

TAQA 6.67 NM - NM 115.76% 2

UPP 6.67 NM - NM 29.75% 2

NIH 6.67 NM - NM 127.07% 2

NIND 6.67 NM - NM 440.53% 2

DSI 6.21 NM - NM 21.41% 1

GGICO 5.78 NM - NM 17.78% 0

ARTC 3.33 NM - NM 26.98% 1

UNIKAI 3.33 0.10 NM NEG -2.85% 65.22% 1

ALSALAMKW 3.33 NM - NM 76.69% 1

IHC 2.11 NM - NM 22.36% 0





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