Top 15 Stocks With Dividend Yield of More Than 8%

High dividend yield stocks often attract investors looking for steady income along with potential capital appreciation. In Pakistan’s power sector, Kot Addu Power Company Limited stands out as a strong yield play, supported by improving fundamentals and strategic diversification.

15. The Hub Power Company Limited (HUBC)

Forward Dividend Yield: 8.0%

📢 Announcement: You can now access our services and similar analyses by opening an account with us via JS Global

Don't miss:

• Top 5 Analyst Questions From Lucky Core Industries (LCI) Corporate Briefing
• 5 Reasons Why MEBL Could Continue Rising Despite a Growth Slowdown
• AKD Predicts PSO Could Double From Here

The Hub Power Company Limited (HUBC)

The Hub Power Company Limited remains one of the market’s prominent dividend plays, supported by stable cash flows from its power assets and growing diversification into new sectors.

Dividend yield remains attractive

HUBC is expected to deliver a dividend yield of around 9% to 9.4% for FY26 and FY27, making it one of the stronger income-focused stocks in the market. Projected dividends are estimated at PKR 17.0 per share for both FY26 and FY27. The company’s payout profile continues to be supported by steady cash flows from its CPEC-related independent power projects, including CPHGC, TEL, and TNPTL.

Strong earnings recovery

The company reported a sharp improvement in profitability during FY26. For the second quarter of FY26, earnings per share came in at PKR 8.2, reflecting a 148% year-over-year increase. Meanwhile, net earnings for the first half of FY26 reached PKR 22.8 billion. A key contributor to earnings was the receipt of around PKR 5 billion in dividends from associates TEL and TELNOVA during the first half of the year.

Expansion beyond traditional power generation

📢 Announcement: We're on WhatsApp – Join Us There! 

One of the most important developments for HUBC is its push toward diversification. The company’s CKD automobile assembly project under Mega Motors reached financial close in January 2026. Construction is now underway for a plant with an annual production capacity of 25,000 units. At the same time, Hubco Green continues to expand its electric vehicle infrastructure network. The company has already established an EV charging corridor connecting Karachi to Multan, while connectivity to Peshawar is expected by late February 2026. These projects indicate that HUBC is positioning itself for long-term opportunities beyond the traditional energy sector.

Strategic shareholder and exploration updates

Another notable development is the increase in stake by Mega Conglomerate, which has raised its holding in HUBC to 19.5%. On the exploration side, the company has completed surveys for the offshore block “Zin”, with drilling activities planned for late 2026 or early 2027. If successful, this could open another growth avenue for the company over the longer term.

Bottom line

The Hub Power Company Limited offers a mix of strong dividend yield, stable cash generation, and long-term diversification potential. With projected yields above 9%, improving earnings, and expansion into EV infrastructure, automobile assembly, and offshore exploration, HUBC remains an important stock to watch for investors seeking both income and future growth exposure.

14. United Bank Limited (UBL)

Forward Dividend Yield: 8.1%

• Dividend Yield: Projections for UBL‘s dividend yield range from 7.3% to 8.6%.
• Latest Corporate Briefing Data (April 15, 2026): The bank posted a record consolidated profit of PKR 130.2 billion for CY25, marking a 71.5% year-over-year increase. EPS for the year was PKR 52.13.
• Efficiency and Growth: UBL is the most cost-efficient bank in the industry, with a cost-to-income ratio of just 31% (well below the 48% industry average). It operates the largest branch network in Pakistan with 1,818 branches.

United Bank Limited (UBL)

United Bank Limited remains one of the strongest banking franchises in Pakistan, supported by record profitability, a large deposit base, and one of the lowest cost structures in the industry.

Dividend yield remains attractive

UBL’s projected dividend yield ranges between 7.3% and 8.6%, keeping the stock within the group of high-yield banking names in the market. The bank’s strong earnings growth and efficient operations continue to support its ability to maintain healthy shareholder payouts.

Record profitability in CY25

For the full year 2025, UBL reported a record consolidated profit of PKR 130.2 billion, reflecting a 71.5% year-over-year increase. Annual earnings per share came in at PKR 52.13, highlighting the strength of the bank’s earnings momentum during the year.

Industry-leading efficiency

One of UBL’s biggest strengths is its cost structure. The bank operates with a cost-to-income ratio of just 31%, significantly lower than the industry average of 48%. This makes UBL the most cost-efficient bank in the sector and gives it a major advantage in maintaining profitability across different economic cycles.

Largest branch network supports scale

UBL also benefits from its extensive physical presence, operating the largest branch network in Pakistan with 1,818 branches. This scale helps the bank maintain a broad customer base and supports deposit mobilization across retail and commercial segments.

Deposit growth and funding mix

As of the third quarter of CY25, UBLs deposit market share reached 13.5%, reinforcing its position as one of the country’s leading banks. The funding profile also remains strong, with zero-cost current accounts accounting for 50% of total deposits. This low-cost deposit base helps protect margins and improve overall funding efficiency.

Strong asset quality

The bank continues to maintain healthy credit quality, with a non-performing loan coverage ratio of 111%. This strong coverage level provides an additional layer of stability and reflects prudent risk management practices.

Bottom line

United Bank Limited offers a compelling combination of strong dividend potential, record profitability, and industry-leading efficiency. With a large branch network, low-cost deposits, and one of the strongest earnings profiles in the sector, UBL remains a key banking stock for investors seeking both income and long-term financial stability.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →