Top 15 Stocks With Dividend Yield of More Than 8%

5. National Bank of Pakistan (NBP)

Forward Dividend Yield: 10.5%

• Dividend Yield and Payout: This stock offered the highest dividend yield in the banking sector during the 2025 calendar year at 16%, significantly outperforming its peers. It maintained a payout ratio of 87%, supported by a dividend per share (DPS) of Rs 35, which was the highest in the sector.
• Balance Sheet Strength: Average deposits grew 12% year-over-year to Rs 4.3 trillion in CY25, while the investment base increased to Rs 4.9 trillion.

National Bank of Pakistan (NBP)

National Bank of Pakistan has emerged as a leading high-yield banking stock, backed by strong earnings growth and a generous payout strategy.

Sector-leading dividend yield

NBP offered the highest dividend yield in the banking sector during CY25 at 16%, significantly outperforming its peers. This was supported by a payout ratio of 87% and a dividend per share of Rs 35, the highest in the sector. The bank’s ability to maintain such a high payout highlights strong underlying cash generation.

Earnings growth drives payouts

The bank reported a sharp increase in profitability during CY25. Earnings per share rose to Rs 40, reflecting a 224% year-on-year growth. This surge was mainly driven by a 45% increase in net interest income (NII), along with a 30% decline in non-interest expenses. However, it is important to note that part of this growth was influenced by one-time pension fund adjustments in the previous year.

Balance sheet expansion remains strong

NBP also showed solid growth in its balance sheet. Average deposits increased by 12% year-on-year to Rs 4.3 trillion, indicating strong customer inflows and funding stability. At the same time, the bank’s investment portfolio expanded to Rs 4.9 trillion, providing a strong base for future earnings through interest income.

Bottom line

National Bank of Pakistan stands out as a high dividend yield leader in the banking sector. With a 16% yield, strong earnings growth, and an expanding balance sheet, the bank offers a compelling opportunity for investors seeking income-focused exposure, although the sustainability of such high payouts will depend on normalized earnings going forward.

⚠️ 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 →