Top 15 Stocks With Dividend Yield of More Than 8%

12. Engro Powergen Qadirpur Limited (EPQL)

Forward Dividend Yield: 8.6%

Engro Powergen Qadirpur Limited (EPQL)

Engro Powergen Qadirpur Limited is gradually transitioning toward a more performance-based operating structure, where earnings and dividend payouts are tied directly to energy production and load factors.

Dividend profile remains a key focus

For CY25, the company distributed a dividend payout of PKR 11.75 per share, maintaining its position as a notable income-generating stock in the power sector. Going forward, management has indicated that future dividends will depend more on annual profitability rather than the clearance of old receivables. This means payout sustainability will increasingly rely on operational improvements and higher utilization levels.

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Shift toward a hybrid operational model

One of the biggest developments for EPQL is its transition to a hybrid business model, where profitability is linked to the plant’s energy production load factor. To support this transition, management is actively pursuing three additional gas supply sources, including the Kandhkot and Badar gas fields. The objective is to raise the plant’s load factor to around 70% to 80%, which could significantly improve earnings potential over time.

Liquidity position improved during CY25

The company’s liquidity profile improved materially during 2025 after receiving a PKR 7.4 billion bullet payment in Q1 2025. This payment helped reduce receivables and strengthen cash flows. By year-end, overdue receivables had declined to approximately PKR 1.5 billion, improving overall financial visibility.

Quarterly and annual performance

For the full year CY25, EPQL reported an EPS of PKR 2.58, while the 4QCY25 dividend stood at PKR 1.25 per share.

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Although profitability remained moderate, the improving liquidity position and operational restructuring provide a clearer path for future earnings recovery.

Operational challenges impacted utilization

The company’s load factor for 2025 stood at 42%, mainly due to a scheduled 20 to 22-day Hot Gas Path Inspection shutdown. While this maintenance activity temporarily reduced utilization, it was necessary to maintain long-term plant efficiency and operational reliability.

Bottom line

Engro Powergen Qadirpur Limited represents a dividend-focused turnaround story within Pakistan’s power sector.

The stock’s future performance will largely depend on management’s ability to improve gas supply availability and raise utilization levels. If the company successfully moves toward its targeted 70%–80% load factor range, both profitability and dividend sustainability could strengthen meaningfully over time.

⚠️ 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 →