Theory tells us that stock returns are composed of capital appreciation and dividends. Gulf Co-operation Council Countries (GCC) companies are generous when it comes to doling out dividends (both cash and stocks) as implied by the high dividend payout ratio. High dividend payout need not necessarily result in high dividend yield due to market price fluctuations. Companies may seem to enjoy high dividend yield more due to sharp deceleration in their share price than sharp acceleration in dividend payout and vice-versa.