Some companies share a percentage of their profits with their shareholders by giving them dividends. Dividend stocks are appealing to stock traders for multiple reasons, including their tendency to be associated with well-established, profitable businesses. Let’s explore more of what dividend shares have to offer stock traders.
This article is for informational purposes only and does not constitute investment advice. Please ensure you understand the risks and consider your individual circumstances before trading.
Dividend stocks are shares of companies that pay a sum of money to their shareholders – this is known as a dividend. It’s typically a percentage of the company’s profits and can be paid once-off or regularly, such as quarterly. The board of directors ultimately determines how much to pay in dividends.
In addition to the hope that the share price will rise, dividends enable stock traders to earn money from their investments.
The amount of money stock traders receive in a dividend depends on how much stock they own – the number of shares they have invested in a particular company.
Not all public companies pay dividends. Some prefer to reinvest their profits back into the business to drive growth, so that the share price will rise.
Companies in a high-growth phase of their development will often choose to reinvest their profits to keep expanding.
The main advantage of stock trading dividend stocks is that you’ll see a return on your investment at some point, either once-off or at regular intervals.
In addition, companies that pay dividends tend to be well-established, so they’re often a less risky investment. However, all investments come with inherent perils, so a risk management strategy is crucial.
If you reinvest your dividends into your stock, you’ll benefit from compounded growth, which occurs when your returns generate additional returns.
The risks of trading dividend stocks are important to be aware of.
For starters, a dividend is never guaranteed; companies might choose to stop dividend payments when the business is struggling financially or if there’s economic turmoil.
Similarly, companies that abruptly stop or reduce dividends might well be under financial strain, and the share price could subsequently drop because of this.
Finally, as interest rates rise, dividends can become worth less, particularly when compared with government securities.
The stocks mentioned in this article are available with IG as follows:
CFD trading
Stock trading
Company |
Industry |
Dividend yield |
Market cap |
Highlights |
Available to trade CFDs with IG |
Available for stock trading with IG |
Energy and logistics |
7.49% |
$52.20 billion |
Distributed $976 million to shareholders in its most recent dividend payment |
✓ |
✓ |
|
Banking |
6.79% |
€47.71 billion |
Aims to pay out 60% – 70% of its profits to shareholders in dividends |
✓ |
X |
|
Space technology and satellite services |
4.41% |
JP¥33.58 billion |
The next dividend is expected to be around JP¥33 per share, but it isn’t guaranteed |
X |
X |
|
Creative media |
5.99% |
$779.72 million |
Most recent dividend was paid on 18 September 2025 at $0.33 per share |
✓ |
✓ |
|
Energy infrastructure |
5.99% |
C$74.86 billion |
Declared a quarterly dividend of C$0.85 per common share for the quarter ending September 2025 |
✓ |
✓ |
Let’s look at five dividend stocks in the UAE you’ll want to keep an eye on right now.
Industry: Energy and logistics
Dividend yield: 7.49%1
Market cap: $52.20 billion2
MPLX owns and operates midstream energy infrastructure and logistics assets, and provides fuel distribution services. Its operations are divided broadly into two segments: Crude Oil and Products Logistics and Natural Gas & NGL (Natural Gas Liquids) Services.
In the first instance, MPLX handles pipelines for crude oil and refined petroleum products, storage terminals, marine terminals and docks, and rails and terminals for refined fuel.
In the second, it deals with gathering and processing natural gas, fractionation, storage and marketing of NGLs, plus the sale of residue gas and condensate.
It has a sizeable infrastructure footprint: thousands of miles of crude oil and light product pipelines, many terminals and storage facilities, marine transport via boats and barges, and a network of refining logistics and distribution facilities.
Highlights:
Industry: Banking
Dividend yield: 6.79%6
Market cap: €47.71 billion7
Nordea is a large Nordic financial services group headquartered in Helsinki, Finland.
As a universal bank with a 200-year history, its mission is to support and grow the Nordic economies. The current entity was formed through mergers of major Nordic banks, becoming the leading financial institution across Sweden, Finland, Norway and Denmark. The bank has evolved from traditional banking to become a comprehensive financial services provider.
Nordea Bank Abp offers banking products and services for individuals, families and businesses in the countries mentioned previously and internationally. It operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments.
Highlights:
Industry: Space technology and satellite services
Dividend yield: 4.41%9
Market cap: JP¥33.58 billion10
Space Co Ltd operates in the satellite services and space technology sector, providing satellite communication services, ground station operations and space-related infrastructure solutions. The company serves both government and commercial clients in Japan and internationally. Its business model centres on recurring revenue from satellite services contracts and infrastructure operations.
It was established to capitalise on Japan's growing space industry and satellite services market, emerging as part of the country’s broader push to develop domestic space capabilities and reduce reliance on foreign satellite services.
Future initiatives likely include expanding satellite constellation services, developing next-generation space technologies and forming strategic partnerships with international space agencies and commercial space companies.
Highlights:
Industry: Creative media
Dividend yield: 5.99%14
Market cap: $779.72 million15
Shutterstock was founded in 2003 and went public in 2012. The company revolutionised the stock photography industry by creating a subscription-based model for licensing creative content, moving away from traditional pay-per-image models to make creative assets more accessible to businesses and creators.
Shutterstock sells high-quality creative content for brands, digital media and marketing companies through its global creative platform. This hosts an extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations.
The business operates on subscription and on-demand licensing models, serving millions of customers worldwide.
In January 2025, Shutterstock announced it entered a merger agreement with Getty Images through a merger of equals. The combined company will retain the name Getty Images Holdings, Inc and trade on the NYSE under ticker GETY.
Highlights:
Industry: Energy infrastructure
Dividend yield: 6.39%18
Market cap: C$74.86 billion19
Formerly TransCanada Corporation, TC Energy was founded in 1951 and has grown to become one of North America's largest pipeline operators. The company was created initially to transport natural gas across Canada and has expanded over decades to operate critical energy infrastructure across North America.
TC Energy operates approximately 93,300 kilometres of natural gas pipelines and 4,900 kilometres of oil pipelines across Canada, the United States and Mexico. Its operations are divided into three main segments: Canadian Natural Gas Pipelines, US Natural Gas Pipelines and Liquids Pipelines. Its business model is built on long-term contracts that provide stable, predictable cash flows with regulated returns on invested capital.
Highlights:
Dividend yields are expressed as a percentage and are the money a company pays its shareholders divided by its current stock price, then multiplied by 100 (to get a percentage).
Here’s an example:
Company A pays 2 dirhams per share, and its stock price is 50 dirhams. The dividend yield = (2/50) x 100 = 4%.
Dividend stocks are not necessarily a wise choice for stock trading. While they do tend to come from well-established companies, they can also be a sign of a company not growing, returning its profits to shareholders instead of reinvesting them.
High-yielding dividend stocks might seem like a good investment, but if a company is returning all of its profits to its shareholders, how much is it reinvesting in itself to drive growth? Stock traders need to conduct in-depth research to determine which dividend stocks to trade, rather than simply going with the highest-yielding ones.
This information has been prepared by IG Limited (DFSA reference No. F001780). It is intended for general information purposes only and does not take into account your personal objectives, financial situation or needs. It should not be regarded as investment advice or a recommendation. Trading CFDs carries a high level of risk and professional clients can lose more then they deposit. Please ensure you fully understand the risks involved and seek independent advice if necessary. All information is accurate at the time of publication and may be subject to change.