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During the turmoil in the Middle East last week, several Israeli stocks either took a hit, or traded very choppily. And as a result, some investors have been looking towards Israel for buying opportunities. To help reduce risk, I have done some research, and found that there are several Israeli-based companies whose stocks do pay dividends.

Here is a list of ten Israeli stocks, and one Closed-End Fund that are worth looking into.

It is important to note that several of these stocks have very short term dividend track records, dividends that have fluctuated significantly, or have skipped paying dividends altogether during certain years.

American Israeli Paper Mills Ltd. (AIP), which trades on the American Stock Exchange, has a very high yield of 15.2%, according to what was reported on the company’s financials for 2006, and with a conversion rate of $1=NIS 4.155. The dividend has been very erratic, and has fluctuated significantly. Although dividends have been paid for the last 15 years, it appears that they haven’t been paid every year. The company manufactures, and markets numerous types of paper, and paper products. The stock has a very high price earnings ratio of 472, and a price sales ratio of 1.82. The stock is very illiquid.

Formula Systems (1985) Ltd. (NASDAQ:FORTY), which trades on the NASDAQ, develops, and sells information technology solutions, and services to large corporations. The stock has a yield of 8.3%, based on last year’s annual dividend payment. It has a very short dividend track record. It has a P/E of 20.8, and a P/S of .31. This is another very illiquid stock.

Tefron Ltd. (TFR) trades on the New York Stock Exchange, and based on last year’s two dividend payments, which the company just started paying, yields 5.3%. The company makes, and markets swim wear, intimate apparel, and other clothing. The stock has a P/E of 11.5, a the P/S of 1.05.

MIND C.T.I., Ltd. (NASDAQ:MNDO) creates, and sells, mediation, rating, billing, and customer care software for communication companies. The stock yields 7.3%, and has paid dividends annually for five years. The company’s P/E is 42, and its P/S is 3.

Blue Square Israel Ltd. (NYSE:BSI), which trades on the NYSE, operates a chain of supermarkets in Israel. It has paid dividends at least once a year, and generally twice a year for the last ten years. It has a current yield of 3.4%, that is based on the last two dividend payments. It has a P/E of 13.8, and a P/S of .43.

The mobile telecommunications company, Partner Communications Co. Ltd. (NASDAQ:PTNR), which trades on the NASDAQ, has a yield of 4%, based on its last four quarterly dividends. It has paid quarterly dividends for the last seven quarters. It has a P/E of 14, a P/S of 1.7, and a PEG of 1.15.

Cellcom Israel Ltd. (NYSE:CEL) is a cellular communications company that yields 2.1%, based on its first dividend that the company has just paid. It trades on the NYSE. It has a P/E of 17, a P/S of 1.7, and a PEG of 1.2.

Ituran Location & Control Ltd. (NASDAQ:ITRN), trades on NASDAQ, and provides stolen vehicle recovery, and tracking services. It has operations in Israel, Brazil, Argentina, and the United States. The stock has a P/E of 16, a P/S of 2.8, and a PEG of .81. The stock yields 1.6%, and has only made two annual dividend payments.

Elbit Systems Ltd. (NASDAQ:ESLT) makes, and markets defense electronic systems, and electro-optic systems. This company has paid dividends, usually quarterly, for the last ten years, and currently yields 1.5%. It has a P/E of 24, and a P/S of 1.15.

Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) makes, and sells generic pharmaceuticals, pharmaceutical ingredients, and animal health pharmaceuticals. This is one of the longest dividend payers on the list, having paid quarterly for over 15 years. The current yield is 1%, with a P/E of 17.4, a P/S of 3.4, and a PEG of 1.1.

The First Israel Fund Inc. (NYSEMKT:ISL) is a closed-end fund that primarily invests in Israeli stocks. Its shares trade on the American Stock Exchange. It has a P/E of 8.3, a P/S of 42, and a yield of 6.6%, which is based on its latest reported payment, that includes capital gains. The actual dividend rate is probably around 1%. It has paid dividends very sporadically for the last 14 years.

Disclosure: The author does not own any of the above.

Source: Ten High-Yielding Israeli Stocks