Best Dividend Stocks on Borsa Istanbul

Best Dividend Stocks on Borsa Istanbul (Updated List)

In markets like Turkey that experience periods of high inflation, companies that generate cash flow and regularly share it with shareholders become a natural magnet for investors. Dividends are not just a means of creating passive income but also a sign of corporate discipline. Building a dividend-focused strategy on Borsa Istanbul, with the right stock selection, can be an effective way to achieve "real" returns against inflation. In this article, you will find the current top dividend stock candidates based on recent trends, the selection methodology, risks to watch, and portfolio construction tips.

How we built this list: Methodology and core criteria

"Best dividend stock" is a multidimensional concept that cannot be reduced to a single number. Looking only at a single year's dividend yield can be misleading. We use the following multi-criteria approach:

• Dividend consistency: Having paid cash dividends more than once over the past 5 years with a predictable distribution policy.
• Sustainable payout ratio: Net income and, ideally, free cash flow (FCF) being sufficient to cover the dividend; isolating the effect of one-time gains.
• Balance sheet strength: Healthy metrics in Net Debt/EBITDA, interest coverage ratio, and working capital management.
• Profitability and efficiency: Return on equity (ROE), margins, and return on capital trends.
• Cyclicality and pricing power: The sector's sensitivity to business cycles and the company's ability to pass costs on to customers.
• Currency and inflation protection: FX-denominated revenues, export share, natural hedge elements.
• Corporate governance and transparency: Quality of KAP disclosures and investor relations, clarity of dividend policy.
• Liquidity and index membership: Priority given to mid-to-large cap stocks in BIST main indices with sufficient trading depth.

Note: The companies below are listed as "current candidates" based on their distribution track record and financial outlook as of 2025. Dividends are determined by the board's proposal and general assembly approval; macro conditions or regulatory decisions may affect distribution behavior. Check KAP announcements and the latest financials before making any investment decision.

2025 Current Dividend Stock Candidate List (BIST)

• Tupras (TUPRS): Sensitive to refining margins; cyclical but a large-scale cash generator. Generates high cash in strong cycles, boosting dividend capacity; distribution ratios may naturally decrease in weak cycles. While carbon transition and modernization investments may temporarily increase capital needs, long-cycle average dividend potential remains strong. Risks: Oil price and crack spread volatility, regulations, temporary cash flow pressure from investments.
• Eregli Demir Celik (EREGL): High scale, cost advantage, and periodically strong dividend capacity. Steel prices and demand cycles are the key drivers. Tends toward generous distributions in strong years and cautious ones in weak years. Long-term dividend potential is notable. Risks: Global growth momentum, import measures, raw material prices.
• Ford Otosan (FROTO): Known for its export-oriented structure, high quality, and strong free cash flow generation. Stands out for maintaining dividend discipline despite large investment programs. A solid candidate for dividend investors seeking consistency despite potential fluctuations. Risks: Model transition, electrification investments, European demand.
• Tofas (TOASO): Closely followed by dividend investors for its stable cash flow and regular distribution history. Production plans and product mix support profitability and cash generation. Although the distribution ratio may vary by year, predictability is high. Risks: Supply chain, market share dynamics, regulations.
• Turkcell (TCELL): A telecom operator capable of generating strong free cash flow through ARPU growth, data consumption, and subsidiary contributions. Dividend payment discipline has strengthened in recent years. Its ability to manage currency- and inflation-sensitive cost items through pricing power is a positive. Risks: Spectrum investments, competition, macro volatility.
• Turk Telekom (TTKOM): Wide infrastructure network and economies of scale provide high cash generation power. Investment cycles (fiberization, 5G) may create periodic pressure, but dividend capacity increases as they mature. Regular distributions have returned to the agenda in recent years. Risks: Leverage and currency sensitivity, regulation, heavy capital expenditure.
• Coca-Cola Icecek (CCOLA): Wide geographic footprint and FX-denominated revenues provide natural protection against inflation and currency risk. Operational efficiency and pricing power support strong free cash flow, creating room for sustainable dividends. Risks: Emerging market volatility, commodity costs, currency pass-through.
• Anadolu Efes (AEFES): Operations in multiple countries, strong brand portfolio, and scale synergies support cash generation. Distribution ratios may vary depending on investment cycles; medium-to-long-term dividend potential remains attractive. Risks: Regulations, consumer trends, international operations risk.
• Enka Insaat (ENKAI): Stands out with its cash-rich balance sheet, FX-denominated revenues, and conservative management approach. A suitable profile for those seeking cautious but regular dividends. Relatively less affected by cyclicality. Risks: Project timelines, contract risks, global economic activity.
• Koc Holding (KCHOL): Wide subsidiary portfolio, corporate governance, and cross-cycle diversification offer lower volatility. While dividend yield is relatively moderate, sustainability and predictability are strong. Risks: Cyclicality of portfolio companies, holding discount dynamics.
• Sabanci Holding (SAHOL): Collects stable cash flow from various sectors, primarily banking and energy. Distribution policy is regular. Portfolio transformation and efficiency programs support medium-term dividend capacity. Risks: Regulations, subsidiary performance, portfolio composition.
• BIM (BIMAS): Known for its defensive business model, high turnover velocity, and strict financial discipline. Distribution ratio is generally conservative; yield comes from growth. Can play a balancing role in a dividend-focused portfolio. Risks: Competition, operating expenses, price caps/regulation.
• Aksa Akrilik (AKSA): An industrial company that stands out with strong cash generation and a dividend culture. While sensitive to raw material prices, stable distributions are possible when efficiency and capacity utilization are well managed. Risks: Commodity cycle, global demand, currency fluctuations.
• Ege Endustri (EGEEN): Export-oriented, niche, and high value-added manufacturing. Known for strong long-term cash generation, and its dividend distribution history is closely monitored by investors. Liquidity may be more limited. Risks: Liquidity, automotive cycle, customer concentration.
• Alarko Holding (ALARK): Energy and contracting-focused portfolio structure; profitability may fluctuate depending on project cycles. Meaningful distributions have been seen during strong cash flow periods in recent years. Diversification and portfolio management are important. Risks: Project risk, energy pricing, regulation.
• Sisecam (SISE): Integrated structure in glass and chemicals plus export share produces a strong volume and pricing combination. Distribution ratios vary periodically due to high investment appetite; however, medium-term dividend capacity is notable. Risks: Commodity and energy costs, global demand, investment cycle.
• Aygaz (AYGAZ): An LPG player known for its extensive distribution network and cash generation potential. Operating cash flow and a conservative balance sheet support dividend payment capacity. Distribution policy is generally predictable. Risks: LPG prices, competition, regulation.
• Is Bank (ISCTR): Dividend payment capacity increases during periods of strong return on equity in banking. With the return to profit distribution in banking in recent years, dividend visibility has risen. Regulatory decisions are a critical determinant in this space. Risks: Regulation and macro policy framework, credit quality, capital adequacy.
• Akbank (AKBNK): Stands out with its solid capital structure and efficiency metrics. Strengthening profitability has a positive impact on dividend payment potential. Distribution ratios may be shaped by regulation. Risks: Macroeconomic outlook, regulation, asset quality.
• Yapi Kredi (YKBNK): Efficiency gains and growth momentum strengthen profitability. As across the banking sector, dividend visibility has increased; however, distribution ratios remain subject to the regulatory framework. Risks: Regulation, funding costs, credit cycle.

The list above is a "candidate pool." Before making an investment decision, separately check each company's last 12 months of financials, KAP announcements for "Profit Distribution Proposal and Policy," general assembly decisions, and dividend dates. Companies included in dividend indices (BIST Dividend, BIST Dividend 25) offer a practical starting universe in terms of regular payment culture.

Dividend yield vs. sustainability: Common mistakes

• Looking at a single year's yield: "High payout this year" does not mean the same rate will come next year. Strip out cyclicality and one-time gains.
• Ignoring the payout ratio: Paying dividends well in excess of net income is unsustainable. Check whether free cash flow (FCF) supports the dividend.
• Neglecting leverage: High Net Debt/EBITDA ratios and rising interest rates can quickly erode dividend capacity.
• Dividend trap: When earnings decline and the stock price falls, the yield may look very high "on paper"; this is usually a warning sign.
• Special dividends and one-offs: A high one-time payout after an asset sale should not be taken as the ongoing distribution level.
• Inflation effect: Nominal dividends may be increasing, but focus on real (inflation-adjusted) returns.

Dividend calendar, KAP announcements, and key dates

In Turkey, dividend distributions are finalized through the board's proposal and general assembly approval. To track the process:

• Open the company's page on KAP and check announcements titled "General Assembly," "Profit Distribution Proposal," "Profit Distribution Table," and "Dividend Payment Dates."
• Note the gross/net dividend amount, ex-date, payment date, and number of installments.
• Ex-date price adjustment: On the ex-date, the stock price theoretically drops by the gross dividend amount. This is a nominal decrease and does not represent a permanent loss of value.
• Withholding tax: Currently, the general withholding rate on dividends is 10%. Since declaration thresholds and exemptions/deductions may change, always verify the current regulations.

Dividend strategy against inflation and currency risk

To prevent a dividend portfolio from being eroded by inflation, companies' pricing power and foreign currency income are important protective factors.

• FX-denominated revenue: Exporters or companies with high foreign currency income can manage cost shocks more effectively.
• Natural hedge: The balance between FX income and FX debt provides a buffer against currency volatility.
• Pricing power: Market leadership, brand strength, and scale effects in mature sectors help protect margins.
• Flexible distribution: Some companies adapt their dividend policy to inflation and investment cycles; focus on sustainability.

How to build a dividend-focused portfolio: A practical approach

• Core-satellite structure: Build the core from defensive companies with regular and predictable distributions, and the satellites from cyclical but high-potential dividend candidates.
• Sector diversification: Position cyclical segments (refinery/steel), defensive segments (telecom/consumer), and cash-collecting segments (holdings/banks) together.
• Dividend reinvestment: Even without automatic DRIP, disciplining yourself to reinvest received dividends into equities increases compounding returns.
• Annual review: New KAP announcements, investment cycle changes, and leverage dynamics can quickly shift the outlook. Revise based on criteria at least once a year.
• Valuation discipline: Do not buy at expensive multiples simply because the dividend yield is high. Seek reasonable valuations through P/E, EV/EBITDA, FCF yield, and similar ratios.

Dividend indices and screening tips

To build a starting universe, Borsa Istanbul's Dividend and Dividend 25 indices offer a useful filter. Apply your own criteria on top of that:

• 5-year distribution history: Uninterrupted or interrupted? What were the reasons?
• FCF coverage: Does free cash flow cover the dividend, or is it being funded by debt?
• Net Debt/EBITDA and interest coverage: Screen out companies whose dividend capacity is strained in a rising rate environment.
• Corporate governance rating and investor relations quality: Policy transparency.

FAQ: Common questions about dividend investing

• Is high dividend yield always good? No. The yield is sometimes a reflection of a falling price. Sustainable profitability and cash flow are more important.
• What is a special dividend? A one-time payment a company makes after extraordinary income or an asset sale. It should not be used as a reference for future years.
• Is a bonus capital increase the same as a dividend? No. A bonus issue is a capital increase from internal reserves; it does not generate cash inflow. A cash dividend is a profit distribution.
• Is tax withheld on dividends? Generally, withholding tax applies; rates and declaration rules may change periodically. Follow the current regulations.
• How do I find the dividend date? It is disclosed through "Ex-date" and "Payment date" announcements on KAP.

Conclusion: Cash flow, discipline, and diversification for sustainable dividends

A dividend-focused investment approach on Borsa Istanbul can target real returns even in inflationary conditions when paired with a portfolio selected using the right criteria and balanced across sectors. Remember that the definition of "best dividend stock" is time-sensitive and that distribution decisions are shaped by macro and company-specific dynamics. Therefore, review KAP announcements, board proposals, general assembly decisions, and financial reports each year to update your list. The 2025 candidate pool above provides a solid starting point for building a "core dividend portfolio" through a disciplined screening and valuation process. As always, the information here is not investment advice; you should conduct your own research based on your personal financial goals, risk tolerance, and time horizon.