Top 15 Stocks With Dividend Yield of More Than 8%

2. Bank Alfalah Limited (BAFL)

• Dividend Yield: The bank is projected to deliver an attractive dividend yield of 11.0% over the next 12 months.
• Latest Corporate Briefing Data (March 31, 2026): For the full year 2025, consolidated EPS stood at PKR 17.63. Despite a year-over-year profit decline of 30%, the bank increased its total annual dividend payout by 24% to PKR 10.50 per share. Total deposits grew by 17% during the year, reaching PKR 2.5 trillion.
• Operational Indicators: Management aims for a normalized cost-to-income ratio of 50-60%. In the first half of CY25, digital throughput surged 80% year-over-year to PKR 9.1 trillion, reflecting a heavy investment in digital transformation that accounts for roughly 9.2% of its operating expenses. The bank also maintains a clean loan portfolio with an infection ratio of 4.1% and a strong provision coverage of 108% as of June 2025.

Bank Alfalah Limited (BAFL)

Forward Dividend Yield: 16.9%

Bank Alfalah Limited presents a solid mix of income and growth, making it a compelling option for investors seeking dividend yields above 8%.

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Strong dividend yield outlook

The bank is expected to deliver a dividend yield of around 11.0% over the next 12 months, placing it among the higher-yielding names in the market. This is supported by a consistent payout strategy. For the full year 2025, the bank declared a total dividend of PKR 10.50 per share, marking a 24% increase year-on-year, even though profits declined during the period.

Earnings performance and deposit growth

In 2025, Bank Alfalah reported a consolidated EPS of PKR 17.63, while profitability declined by 30% year-on-year. Despite this, the bank continued to strengthen its core operations. Total deposits grew by 17%, reaching PKR 2.5 trillion, highlighting strong customer confidence and an expanding funding base.

Operational efficiency and digital growth

The bank is actively working to improve efficiency. Management is targeting a cost-to-income ratio in the range of 50–60%, which suggests a focus on better cost control in the coming periods. At the same time, digital transformation remains a key growth driver. In the first half of 2025, digital throughput surged 80% year-on-year to PKR 9.1 trillion. This reflects consistent investment in technology, which accounts for around 9.2% of operating expenses.

Asset quality remains strong

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Another important strength is the bank’s asset quality. As of June 2025, it maintained an infection ratio of 4.1% and a provision coverage of 108%, indicating a relatively clean loan book and strong risk management.

Bottom line

Bank Alfalah Limited offers a combination of attractive dividend yield and steady operational growth. With a projected yield of around 11%, strong deposit expansion, improving efficiency targets, and a growing digital platform, the bank remains well-positioned for investors seeking reliable income along with long-term 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 →