Top 15 Stocks With Dividend Yield of More Than 8%

Posted by: Aamir Hayat Like: 0 Post Date: May 9, 2026

Top 15 Stocks With Dividend Yield of More Than 8%

1. Kot Addu Power Company Limited (KAPCO)

Forward Dividend Yield: 22.2%

Metric	Data Highlights
Dividend Yield Focus	Estimated Dividend Yield of 13.7% for both FY26 and FY27. The company is expected to maintain an attractive yield even as it pursues portfolio diversification.
Projected DPS	PKR 5.00 for FY26 and FY27.
Latest Corporate Briefing (Feb 2026)	The Tri-Partite Power Purchase Agreement (TPPA) for 500 MW was approved and issued in late 2025. The PPA has been renewed for a 3-year period ending in 2028 under a hybrid take-and-pay model. KAPCO has also submitted a binding offer to acquire a 42.03% stake in Al-Abbas Cement Limited (ACPL) to diversify its earnings base.

Kot Addu Power Company Limited (KAPCO)

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Kot Addu Power Company Limited is emerging as an attractive high-yield stock, offering strong dividend visibility while also working toward stabilizing its long-term earnings base.

Dividend yield remains the key attraction

KAPCO’s investment case is largely centered around its dividend profile. The company is expected to deliver an estimated dividend yield of 13.7% for both FY26 and FY27, making it one of the higher-yielding stocks in the market. In line with this, projected dividends stand at PKR 5.00 per share for both FY26 and FY27, suggesting consistency in payouts even as the company navigates operational changes.

PPA renewal supports earnings visibility

A major development for KAPCO has been the renewal of its power agreement. The Tri-Partite Power Purchase Agreement (TPPA) for 500 MW was approved and issued in late 2025, extending operations for a three-year period until 2028.

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The agreement follows a hybrid take-and-pay model, which provides a more stable revenue structure compared to previous arrangements. This renewal plays a key role in restoring earnings visibility for the company.

Balance sheet strength improves outlook

KAPCO’s financial position has improved significantly. As of September 2025, the company reported a net cash position of PKR 45.1 per share, reflecting strong liquidity. In addition, it has fully repaid its short-term debt, reducing it from PKR 31.1 billion to zero. This deleveraging not only lowers financial risk but also supports the company’s ability to maintain dividend payouts.

Turnaround expected in profitability

With the reinstatement of the PPA, KAPCO is expected to return to profitability. The company is projecting a gross profit of PKR 548 million in FY26, marking a turnaround after a period of pressure on earnings. This recovery strengthens the case for sustained dividends in the near term.

Diversification into the cement sector

To reduce reliance on power generation alone, KAPCO is also exploring diversification. The company has submitted a binding offer to acquire a 42.03% stake in Al-Abbas Cement Limited (ACPL). If completed, this move would provide exposure to another cyclical sector and help diversify earnings streams over time.

Bottom line

Kot Addu Power Company Limited offers a compelling mix of high dividend yield and improving fundamentals. With a yield of over 13%, a strengthened balance sheet, renewed power agreements, and plans for diversification, the stock stands out as a strong candidate for income-focused investors looking for stable returns above 8%.

⚠️ 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 →