Top 15 Stocks With Dividend Yield of More Than 8%

10. Fauji Fertilizer Company Limited (FFC)

Forward Dividend Yield: 8.8%

Dividend Yield Profile

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• Current Yield (2025): The dividend yield for 2025 stood at 7.2% to 8.0%.
• Forward Yield (2026E): Analysts project the yield to increase to 10% in 2026 based on expected earnings growth.
• Payout Resilience: The company maintained a payout ratio of 72% in 2025, supported by robust cash flows and high-margin urea volumes.

Latest Corporate Briefing Highlights (March 16, 2026)

• GIDC and Tax Management: The company has accrued Rs. 85 billion in GIDC, which is expected to be reduced to Rs. 71 billion after adjusting for government receivables. Payments are anticipated in quarterly installments with limited impact on future dividends.
• PIA Acquisition: FFC is leading a consortium to acquire a 75% stake in Pakistan International Airlines, with FFC holding a 34% interest. The company’s share of the consideration is Rs. 67 billion, with Rs. 31 billion payable by May 2026.
• Strategic Energy Shift: A bankable feasibility study for a coal gasification project has been completed to reduce reliance on volatile natural gas supplies.
• Network Expansion: The company has expanded its “Sona Centres” to 244 locations to provide direct services and fertilizer to approximately 118,000 registered farmers.

Fauji Fertilizer Company Limited (FFC)

Fauji Fertilizer Company Limited remains one of the most stable and reliable dividend-paying stocks in the market, backed by its dominant industry position and resilient earnings profile.

Dividend yield set to improve

In 2025, FFC delivered a dividend yield of around 7.2% to 8.0%, slightly below the high-yield threshold but still attractive given its consistency. Looking ahead, the outlook is stronger. Analysts expect the dividend yield to rise to around 10% in 2026, supported by earnings growth and stable payout levels. The company maintained a payout ratio of 72% in 2025, reflecting a balanced approach between rewarding shareholders and retaining cash for future needs.

Market leadership supports stability

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FFC continues to dominate the fertilizer sector, accounting for more than 40% of total industry production. This scale provides pricing power, operational efficiency, and a stable demand base, all of which support long-term earnings and dividend sustainability.

Managing liabilities and cash flows

One of the key areas of focus for the company is managing its obligations. FFC has accrued Rs. 85 billion in GIDC, which is expected to reduce to Rs. 71 billion after adjustments. These payments are planned in quarterly installments, and management expects limited impact on future dividend payouts.

Strategic expansion and diversification

FFC is also exploring new growth avenues. The company is leading a consortium to acquire a 75% stake in Pakistan International Airlines, with its own share amounting to 34%. This translates into a commitment of Rs. 67 billion, with Rs. 31 billion payable by May 2026. In addition, the company is working on a coal gasification project aimed at reducing reliance on natural gas and improving long-term cost stability.

Strengthening the distribution network

To further enhance its market reach, FFC has expanded its “Sona Centres” network to 244 locations, serving around 118,000 registered farmers. This strengthens its direct connection with end-users and supports consistent product demand.

Bottom line

Fauji Fertilizer Company Limited offers a strong combination of market leadership, steady earnings, and improving dividend yield. With expected yields rising to around 10%, a dominant position in the fertilizer sector, and ongoing strategic initiatives, the company remains a solid choice 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 →