Top 15 Stocks With Dividend Yield of More Than 8%

11. Allied Bank Limited (ABL)

Average Forward Dividend Yield: 8.8%

• Dividend Yield: The bank’s dividend yield is projected at 9.0% to 9.6%.
• Balance Sheet Trends: Net investments grew substantially by 80% to roughly PKR 2.04 trillion in 9MCY25. Net advances, however, declined by 37% as the bank shifted its focus towards high-yielding government securities.
• Stability: The bank maintains one of the strongest capital positions in the sector, with a Capital Adequacy Ratio (CAR) of 31.15% as of mid-2025.

Allied Bank Limited (ABL)

Allied Bank Limited stands out as a stable dividend play in the banking sector, supported by strong capital buffers and a shift toward lower-risk income streams.

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Attractive dividend yield outlook

The bank is expected to deliver a dividend yield in the range of 9.0% to 9.6%, making it a suitable option for investors targeting returns above 8%. This yield is supported by an improving payout strategy, with the dividend payout ratio rising to 53% for the nine months ending September 2025, compared to 42% in CY24.

Earnings performance remains solid

For the nine-month period ending September 2025, Allied Bank reported a profit after tax of approximately PKR 26 billion. The improvement in payout ratio alongside stable profitability reflects management’s confidence in sustaining shareholder returns.

Shift in balance sheet strategy

One of the key developments for ABL has been a shift in its asset mix. The bank significantly increased its net investments by 80% to around PKR 2.04 trillion during 9MCY25. At the same time, net advances declined by 37%, as the bank reduced exposure to lending and focused more on high-yielding government securities. This strategy helps lower credit risk while maintaining earnings through secure investment income.

Strong capital position ensures stability

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A major strength for Allied Bank is its robust capital base. The bank reported a Capital Adequacy Ratio (CAR) of 31.15% as of mid-2025, one of the strongest in the sector. This high capital buffer provides resilience against economic shocks and supports future growth, while also ensuring the sustainability of dividend payouts.

Bottom line

Allied Bank Limited offers a compelling mix of stable dividends and strong financial discipline. With yields close to 10%, a conservative investment strategy, and one of the strongest capital positions in the sector, the bank remains a reliable choice for investors seeking consistent income with lower risk exposure.

⚠️ 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 →