Top 5 Dividend-Paying Stocks in Pakistan

Introduction

Pakistan’s leading dividend-paying companies in 2026 show a clear pattern of strong cash generation, sector dominance, and increasing diversification beyond core operations. Fertilizer, oil and gas exploration, power generation, and large-scale energy producers continue to drive earnings stability through high payout ratios, strong reserves, and improving operational efficiency. Across all five companies, dividends remain a central theme supported by solid quarterly profits, steady production flows, and investment income from diversified assets. At the same time, companies are increasingly expanding into new growth areas such as mining, renewable energy, data centres, and international energy participation, strengthening long-term earnings visibility while maintaining shareholder returns as a core priority.

5. Pakistan Oilfields Limited (POL)

Expected Average 2027 EPS Growth Rate 8.1%

Strong Cash Generation and High Payout Structure

POL is projected to deliver EPS of PKR 75.2 to 83.2 in FY 2026, with dividend per share expected between PKR 68.0 and 74.9. This reflects a payout ratio of around 90 per cent, showing a strong focus on shareholder returns. Dividend yield is estimated at approximately 12 per cent, supported by stable cash flows and consistent operational performance. Net sales are expected at around PKR 55.9 billion, while return on equity is projected in the range of 29% to 30%

Liquidity Strength and Defensive Revenue Mix

As of early 2026, POL holds approximately PKR 112 billion in cash and financial assets, equal to roughly PKR 396 per share. This strong liquidity base supports dividend stability and reduces financial stress risk. More than 50% of revenue comes from crude oil, which helps reduce exposure to circular debt issues affecting the gas sector. Low capital expenditure relative to peers further strengthens free cash flow and dividend sustainability. However, production concentration remains high, with around 60 percent of output coming from the Tal block.

New Wells Supporting Production Stability

Recent operational updates show new production additions supporting output stability. Makori Deep 03 delivered 22.08 mmscfd gas and 2,112 bpd condensate, adding near-term production strength. Razgir 1 is now connected to the Tolanj facility and is producing 25.1 mmscfd gas and 333 bpd condensate. These developments aim to offset natural decline in mature fields. Earlier production pressure from LNG system constraints is expected to normalize as new wells contribute more consistently during 2026. Earnings remain sensitive to global crude oil prices and rupee movement, which act as key external drivers.

4. The Hub Power Company Limited (HUBC)

Expected Average 2027 EPS Growth Rate 5.9%

Strong Dividend Visibility And Stable Earnings Base

The Hub Power Company Limited remains a key income stock supported by steady cash flows from its power generation assets and growing contribution from diversified investments. For FY26, net sales are projected at PKR 71.36 billion with expected profit after tax of PKR 51.82 billion. Finance cost is estimated at PKR 8.61 billion. Dividend outlook remains strong with expected DPS of PKR 17.0 for FY26 and FY27.

 

Core Power Assets Continue To Drive Cash Flows

CPEC linked IPPs remain the main dividend engine for the company, with CPHGC and TNPTL continuing to distribute strong cash flows to the holding structure. Thar plants (TEL and TNTPL) maintained load factors of 60 to 68 percent in 1HFY26, supporting operational stability. Local coal usage generated USD 116 million in foreign exchange savings during the first half of the year.

Quarterly Performance Remains Resilient

In 2QFY26, the company posted EPS of PKR 8.2 and net earnings of PKR 10.6 billion. Associate income also supported results with PKR 4 billion from TELNOVA and PKR 1 billion from TEL. Overall performance reflects steady earnings delivery from core operations.

Diversification Into New Growth Areas

HUBC continues to expand beyond power generation. Its 50 percent stake in BYD vehicle assembly has reached financial close for a 25,000-unit CKD plant in Gharo, with operations expected in 2H2026. Through HUBC Green, 16 EV fast chargers are operational, with expansion planned toward Peshawar. In mining, seismic work for the Zin block is completed and drilling is planned for late 2026 or early 2027. Mega Conglomerate has increased its stake in the company to 19.5%

3. Oil & Gas Development Company Limited (OGDC)

Expected Average 2027 EPS Growth Rate 8.4%

Company Overview

OGDC is Pakistan’s largest exploration and production company with a market capitalization of approximately PKR 1.3 trillion. The Government of Pakistan owns 85.02% of the company. It contributes around 49% of national oil production, 28% of gas production, and 34% of LPG production.

Latest Quarterly Results

During 9MFY26, net sales reached PKR 300 billion, while profit after tax stood at PKR 115.3 billion and EPS came in at PKR 26.8. Average daily production was 32,022 barrels of crude oil, 648 mmcf of gas, and 653 tons of LPG. Management also reported that optimization initiatives lifted oil production above 40,000 barrels per day for the first time since FY19.

Latest Corporate Briefing Highlights

Management aims to increase oil production to 48,000 to 50,000 barrels per day by December 2026. The company achieved a reserve replacement ratio of 153%, while its own operated fields posted an impressive 240%. The Baragzai X 01 discovery is expected to increase production over the next two years, with current test flows estimated to add PKR 6.91 per share to earnings. OGDC is also evaluating 80 tight gas wells that offer a 40% pricing premium over conventional gas.

Strategic Growth Initiatives

The company is expanding beyond hydrocarbons through multiple long-term projects. Civil works continue at the Reko Diq copper and gold project where OGDC holds an effective 8.33% stake. It also owns a 10% participating interest in Abu Dhabi Offshore Block 5, which is expected to contribute to earnings from 2028. Renewable energy expansion is underway through its subsidiary OGDC Renewable Energy Private Limited.

Dividend Outlook

OGDC is expected to pay dividends of PKR 13.5 to PKR 16.3 per share during FY26, with an anticipated dividend yield of 5.5% to 6.0% and a payout ratio of 39% to 45%. Liquidity could improve further if the proposed gas circular debt resolution is implemented, helping recover the company’s PKR 583 billion exposure. Additional FY26 cash inflows include PKR 92 billion from interest settlements and around PKR 90 billion in Uch Power arrears.

2. Mari Energies Limited (MARI)

Expected Average 2027 EPS Growth Rate 13.1%

2026 Financial Projections

Metric	2026 Projection
Dividend Per Share (DPS)	PKR 20.0 to PKR 22.2
Dividend Yield	2.9% to 3.2%
Dividend Payout Ratio	Around 40%
Net Sales	Approximately PKR 202 billion
Profit After Tax	Approximately PKR 59.3 billion
Earnings Per Share (EPS)	PKR 49.4 to PKR 50.0
Return on Equity (ROE)	Approximately 21% to 23%

Strategic Transformation

Mari Petroleum has officially rebranded as Mari Energies Limited, reflecting its strategy to become a diversified energy company with investments beyond conventional oil and gas operations.

Data Centre Expansion

Through its subsidiary Sky47 Limited, the company is developing Pakistan’s first Tier III certified 5MW data centres in Islamabad and Karachi. Management expects this business to contribute around 8% to 10% of overall earnings once scalable utilization is achieved.

Mining Expansion

Mari Minerals (Pvt) Limited is expanding mineral exploration activities in the Chagai district of Balochistan with a focus on copper and gold exploration, supporting the company’s long-term diversification strategy.

Offshore Growth

During 2026, Mari Energies secured participation in all 23 offshore blocks awarded in the latest bidding round and will operate 18 of them. The company is also acquiring a 65% working interest and operatorship of the Peshawar Block along with a 20% working interest in the Eastern Offshore Block C.

Latest Operational Update

Natural gas production during the first five months of FY26 remained broadly stable with a minor adjustment of 2.8%, while crude oil production recorded a normalization adjustment of 6.0%.Commercial production has commenced from the Spinwam field in the Waziristan Block with production capacity of approximately 70 mmscfd of gas and 700 barrels of condensate per day, contributing around 9% of current hydrocarbon production.Production from the Ghazij and Shawal reservoirs currently stands at 48 mmscfd. A phased development plan targets production of 220 mmscfd by the second half of 2028 to support domestic fertilizer plants.Mari Energies continues to serve as the system balancer in Pakistan’s gas network by managing reservoir pressure to ensure long term gas supply to key customers.

Reserve Position

The company maintains the sector’s highest Reserve Replacement Ratio of 278%, while total reserves and resources (2P+2C) have reached a record 952 MMBOE, strengthening long term production visibility.

1. Fauji Fertilizer Company Limited (FFC)

Expected Average 2027 EPS Growth Rate 9.0%

Fauji Fertilizer Company Limited (FFC) is Pakistan’s largest urea producer with more than 40% of industry production and the country’s entire domestic DAP production capacity. Alongside its fertilizer business, the company has investments in banking, power, and food sectors that provide additional earnings support.

Investment Income Boosted Earnings

Other income increased to PKR 10.7 billion, mainly supported by PKR 5 billion in dividends from Thar Energy Limited and PKR 2 billion from Askari Bank. These investments continued to strengthen overall profitability.

Corporate Briefing Highlights

FFC remains the lead partner in the consortium bidding for a 75% stake in Pakistan International Airlines, with a 34% share and an investment commitment of about PKR 67 billion. The company has also completed a feasibility study for the Thar coal gasification project and continues working on improving gas supply through the Mari field. Management expects the Sona Centre network to expand to 270 outlets by the end of 2026, while another planned maintenance shutdown is scheduled for September 2026.

Dividend Outlook

Management estimates a total dividend of PKR 44.0 to PKR 47.15 per share for 2026, reflecting confidence in the company’s cash generation.

Conclusion

The combined outlook of FFC, MARI, OGDC, HUBC, and POL highlights a high-quality dividend universe in Pakistan where income stability is supported by both operational strength and financial discipline. Fertilizer leadership, large-scale gas reserves, oil-linked cash flows, and diversified power assets collectively ensure consistent earnings support even in a challenging macroeconomic environment. Across these companies, payout ratios remain strong, reserve replacement is improving in key E&P names, and investment income is playing an increasingly important role in sustaining dividends. At the same time, diversification into energy transition projects, mining, offshore exploration, and industrial ventures signals a gradual shift toward broader long-term growth engines. Overall, the 2026 landscape reflects a balanced mix of high-yield income and structural transformation across Pakistan’s blue-chip universe.

⚠️ 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 →