When investors hunt for the best dividend stocks in the UAE, you may assume they are looking for dividends to cover recurring expenses (paying their children’s school fees, for example).
However, some investors love dividends because they can reinvest them to further increase their investment return (through compound interest). This approach is sometimes called dividend-growth investing.
If you want to explore this strategy, you need an investment app that supports automatic dividend reinvestment. In this article, we consider 5 such apps available in the UAE.
1.Sarwa
Sarwa is a UAE-based investment platform that provides access to dividend stocks and other income-generating assets like bonds and REITs.
Best known for
Sarwa is best known for providing an all-in-one platform appropriate for both passive and active investors. Investors can create their portfolios or opt for a personalized portfolio created for them by Sarwa’s wealth advisors.
Key advantages
- Fractional trading: You can buy a fraction of a share of any stock or ETF.
- Free AED deposits and withdrawals: Deposits from and withdrawals to your local AED account are free.
- Halal and socially responsible investing (SRI) options: If you choose to be a passive investor, you can explore the halal and SRI options.
- Educational resources: Sarwa has a library of articles that will make you a better investor in general and a better dividend investor in particular. For example, you can find answers to questions such as: What is a dividend?
Ideal for
Dividend-growth investors who want easy access to the global financial market.
2. eToro
eToro is a global trading platform with a license to operate in the UAE. It offers access to dividend stocks and other income-generating assets.
Best known for
eToro is best known as the pioneer of copy/social trading and a leader in thematic investing.
Key advantages
- Wide range of global assets: eToro offers more than 7,000 assets on its platforms.
- Sharia-compliant accounts: Halal investors can invest based on their convictions.
- Passive and active investing: eToro also has wealth advisors who can create customized portfolios for users.
Ideal for
Dividend investors who want access to the global financial market.
3.Interactive Brokers
Interactive Brokers (IBKR) is a global brokerage company that provides access to dividend stocks and other assets across the global financial market.
Best known for
IBKR is best known for offering multiple assets across 150 global markets.
Key advantages
- Multiple currencies: Investors can hold balances and trade in multiple currencies.
- Multiple trading platforms: There is a platform appropriate for beginners and another one for experienced investors.
- Tiered pricing: Investors who trade frequently will pay lower commission per trade. Those who trade less than 300,000 shares will pay 0.0035% per trade, while those who trade more than a million shares will pay 0.0005% commission per trade.
Ideal for
IBKR is ideal for experienced dividend investors who need access to more sophisticated tools.
4.Saxo Bank
Saxo Bank is a Danish company with a license to operate in the UAE. It offers access to more than 71,000 assets across various asset classes.
Best known for
Saxo Bank is best known for the range of assets that it offers to investors.
Key advantages
- Educational resources: Saxo Bank has a library of resources to help investors improve their skills.
- Demo account: Beginners can try out a $100,000 demo account for 20 days.
- Multiple trading platforms: Beginners can use the simpler platform while advanced investors can use the more sophisticated one.
Ideal for
Saxo Bank is ideal for investors who want access to global markets.
5.ADIB Securities
ADIB Securities is a Sharia-compliant brokerage platform offered by Abu Dhabi Islamic Bank. It mainly offers access to assets in the UAE and other GCC markets.
Best known for
ADIB Securities is known for listing only Halal-compliant assets.
Key advantages
- Dedicated support: Professionals are available to provide investors with expert insights and other personalized services.
- Simple and user-friendly platform: The mobile and web-based platforms are easy for beginners to get a hang of.
- Reputation: ADIB Securities is well known as the number one Islamic brokerage in the UAE.
Ideal for
ADIB Securities is ideal for dividend investors who want to focus only on GCC markets.
If you are ready to execute a dividend reinvestment strategy in the UAE, Sarwa seems to provide the best of all possible worlds.
You enjoy access to global markets while working with a UAE-based platform that understands the needs of local investors.
Also, the educational resources will make you a better investor, while the simple and intuitive platform will help you execute any strategy you have. And if you are a Halal or SRI investor, you will find opportunities that fit your investment preferences.
