{"id":12884,"date":"2026-05-09T23:06:46","date_gmt":"2026-05-09T18:06:46","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=12884"},"modified":"2026-05-09T23:43:49","modified_gmt":"2026-05-09T18:43:49","slug":"15-stocks-with-dividend-yield-of-more-than-8","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/15-stocks-with-dividend-yield-of-more-than-8\/","title":{"rendered":"Top 15 Stocks With Dividend Yield of More Than 8%"},"content":{"rendered":"\n<p>High dividend yield stocks often attract investors looking for steady income along with potential capital appreciation. In Pakistan\u2019s power sector, Kot Addu Power Company Limited stands out as a strong yield play, supported by improving fundamentals and strategic diversification.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>15. The Hub Power Company Limited (HUBC)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 8.0%<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\"><strong>Metric<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Data Highlights<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Dividend Yield Focus<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Attractive Dividend Yield estimated at 9% to 9.4%<\/strong> for FY26\/27. Strong and stable payouts from CPEC IPPs (CPHGC, TEL, and TNPTL) remain the primary driver for dividends.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Projected DPS<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>PKR 17.0<\/strong> for FY26 and FY27.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Latest Corporate Briefing (Feb 2026)<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">The <strong>CKD assembly project (Mega Motors)<\/strong> reached financial close in January 2026, with construction underway for a plant with a <strong>25,000-unit annual capacity<\/strong>. Hubco Green has established an <strong>EV charging corridor<\/strong> enabling travel from Karachi to Multan, with Peshawar connectivity expected by late February 2026.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Strategic Updates<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Mega Conglomerate has increased its stake in Hubco to <strong>19.5%<\/strong>. Exploration surveys for the offshore block <strong>&#8220;Zin&#8221;<\/strong> have been completed, with drilling planned for late 2026 or early 2027.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Hub Power Company Limited (HUBC)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">The Hub Power Company Limited<\/a><\/strong> remains one of the market\u2019s prominent dividend plays, supported by stable cash flows from its power assets and growing diversification into new sectors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend yield remains attractive<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">HUBC<\/a><\/strong> is expected to deliver a <strong>dividend yield of around 9% to 9.4% for FY26 and FY27<\/strong>, making it one of the stronger income-focused stocks in the market. Projected dividends are estimated at <strong>PKR 17.0 per share for both FY26 and FY27<\/strong>. The company\u2019s payout profile continues to be supported by steady cash flows from its CPEC-related independent power projects, including <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/cphgc\/\" data-type=\"post_tag\" data-id=\"281\">CPHGC<\/a>, <a href=\"https:\/\/ksestocks.com\/blog\/tag\/tel\/\" data-type=\"post_tag\" data-id=\"278\">TEL<\/a>, and <a href=\"https:\/\/ksestocks.com\/blog\/tag\/tnptl\/\" data-type=\"post_tag\" data-id=\"279\">TNPTL<\/a><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong earnings recovery<\/strong><\/h3>\n\n\n\n<p>The company reported a sharp improvement in profitability during FY26. For the second quarter of FY26, <strong>earnings per share came in at PKR 8.2<\/strong>, reflecting a <strong>148% year-over-year increase<\/strong>. Meanwhile, <strong>net earnings for the first half of FY26 reached PKR 22.8 billion<\/strong>. A key contributor to earnings was the receipt of around <strong>PKR 5 billion in dividends from associates TEL and TELNOVA<\/strong> during the first half of the year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Expansion beyond traditional power generation<\/strong><\/h3>\n\n\n\n<p>One of the most important developments for <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">HUBC<\/a><\/strong> is its push toward diversification. The company\u2019s <strong>CKD automobile assembly project under Mega Motors<\/strong> reached financial close in January 2026. Construction is now underway for a plant with an annual production capacity of <strong>25,000 units<\/strong>. At the same time, <strong>Hubco Green<\/strong> continues to expand its electric vehicle infrastructure network. The company has already established an <strong>EV charging corridor connecting Karachi to Multan<\/strong>, while connectivity to <strong>Peshawar is expected by late February 2026<\/strong>. These projects indicate that <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">HUBC<\/a><\/strong> is positioning itself for long-term opportunities beyond the traditional energy sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strategic shareholder and exploration updates<\/strong><\/h3>\n\n\n\n<p>Another notable development is the increase in stake by <strong>Mega Conglomerate<\/strong>, which has raised its holding in <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">HUBC<\/a><\/strong> to <strong>19.5%<\/strong>. On the exploration side, the company has completed surveys for the offshore block <strong>\u201cZin\u201d<\/strong>, with drilling activities planned for <strong>late 2026 or early 2027<\/strong>. If successful, this could open another growth avenue for the company over the longer term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">The Hub Power Company Limited<\/a><\/strong> offers a mix of <strong>strong dividend yield, stable cash generation, and long-term diversification potential<\/strong>. With projected yields above <strong>9%<\/strong>, improving earnings, and expansion into EV infrastructure, automobile assembly, and offshore exploration, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hubc\/\" data-type=\"post_tag\" data-id=\"33\">HUBC<\/a><\/strong> remains an important stock to watch for investors seeking both income and future growth exposure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>14. United Bank Limited (UBL)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 8.1%<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield:<\/strong> Projections for <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">UBL<\/a><\/strong>&#8216;s dividend yield range from <strong>7.3%<\/strong> to <strong>8.6%<\/strong>.<\/li>\n\n\n\n<li><strong>Latest Corporate Briefing Data (April 15, 2026):<\/strong> The bank posted a record consolidated profit of <strong>PKR 130.2 billion<\/strong> for CY25, marking a <strong>71.5% year-over-year increase<\/strong>. EPS for the year was <strong>PKR 52.13<\/strong>.<\/li>\n\n\n\n<li><strong>Efficiency and Growth:<\/strong> UBL is the most cost-efficient bank in the industry, with a cost-to-income ratio of just <strong>31%<\/strong> (well below the 48% industry average). It operates the largest branch network in Pakistan with <strong>1,818 branches<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>United Bank Limited (UBL)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">United Bank Limited<\/a><\/strong> remains one of the strongest banking franchises in Pakistan, supported by record profitability, a large deposit base, and one of the lowest cost structures in the industry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend yield remains attractive<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">UBL<\/a><\/strong>\u2019s projected dividend yield ranges between <strong>7.3% and 8.6%<\/strong>, keeping the stock within the group of high-yield banking names in the market. The bank\u2019s strong earnings growth and efficient operations continue to support its ability to maintain healthy shareholder payouts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Record profitability in CY25<\/strong><\/h3>\n\n\n\n<p>For the full year 2025, UBL reported a <strong>record consolidated profit of PKR 130.2 billion<\/strong>, reflecting a <strong>71.5% year-over-year increase<\/strong>. Annual earnings per share came in at <strong>PKR 52.13<\/strong>, highlighting the strength of the bank\u2019s earnings momentum during the year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Industry-leading efficiency<\/strong><\/h3>\n\n\n\n<p>One of UBL\u2019s biggest strengths is its cost structure. The bank operates with a <strong>cost-to-income ratio of just 31%<\/strong>, significantly lower than the <strong>industry average of 48%<\/strong>. This makes UBL the most cost-efficient bank in the sector and gives it a major advantage in maintaining profitability across different economic cycles.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Largest branch network supports scale<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">UBL<\/a><\/strong> also benefits from its extensive physical presence, operating the <strong>largest branch network in Pakistan with 1,818 branches<\/strong>. This scale helps the bank maintain a broad customer base and supports deposit mobilization across retail and commercial segments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Deposit growth and funding mix<\/strong><\/h3>\n\n\n\n<p>As of the third quarter of CY25, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">UBL<\/a><\/strong>s <strong>deposit market share reached 13.5%<\/strong>, reinforcing its position as one of the country\u2019s leading banks. The funding profile also remains strong, with zero-cost current accounts accounting for <strong>50%<\/strong> of total deposits. This low-cost deposit base helps protect margins and improve overall funding efficiency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong asset quality<\/strong><\/h3>\n\n\n\n<p>The bank continues to maintain healthy credit quality, with a <strong>non-performing loan coverage ratio of 111%<\/strong>. This strong coverage level provides an additional layer of stability and reflects prudent risk management practices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">United Bank Limited<\/a><\/strong> offers a compelling combination of <strong>strong dividend potential, record profitability, and industry-leading efficiency<\/strong>. With a large branch network, low-cost deposits, and one of the strongest earnings profiles in the sector, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\">UBL<\/a><\/strong> remains a key banking stock for investors seeking both income and long-term financial stability.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>13. Bank of Punjab (BOP)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 8.4%<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield:<\/strong> This stock offers a dividend yield of approximately <strong>8%<\/strong>, placing it among the top dividend-yielding bank stocks.<\/li>\n\n\n\n<li><strong>Earnings and Payout:<\/strong> In CY25, the bank maintained a dividend payout ratio of roughly <strong>45-50%<\/strong>. Its trailing P\/E multiple is approximately <strong>6.9x<\/strong>, trading near the sector average.<\/li>\n\n\n\n<li><strong>Valuation:<\/strong> The bank currently trades at a Price-to-Book (P\/B) multiple of approximately <strong>1.0x<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bank of Punjab (BOP)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bop\/\" data-type=\"post_tag\" data-id=\"118\">Bank of Punjab<\/a><\/strong> has emerged as one of the higher-yielding banking stocks in the market, supported by steady payouts and improving profitability trends.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend yield remains attractive<\/strong><\/h3>\n\n\n\n<p>The stock currently offers a <strong>dividend yield of around 8%<\/strong>, placing it among the stronger income-generating names within the banking sector. The bank also maintained a <strong>dividend payout ratio of approximately 45% to 50% in CY25<\/strong>, reflecting a balanced approach between rewarding shareholders and retaining earnings for future growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Valuation remains relatively reasonable<\/strong><\/h3>\n\n\n\n<p>From a valuation perspective, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bop\/\" data-type=\"post_tag\" data-id=\"118\">BOP<\/a><\/strong> continues to trade at moderate levels compared to peers. The stock\u2019s <strong>trailing P\/E ratio stands at around 6.9x<\/strong>, which is close to the sector average and suggests the market is still pricing the bank conservatively despite improving fundamentals. Meanwhile, the bank trades at a <strong>Price-to-Book (P\/B) multiple of roughly 1.0x<\/strong>, indicating that the stock is valued close to its book value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why investors are watching the stock<\/strong><\/h3>\n\n\n\n<p>The investment case for <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bop\/\" data-type=\"post_tag\" data-id=\"118\">BOP<\/a><\/strong> largely revolves around its combination of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Attractive dividend payouts<\/li>\n\n\n\n<li>Reasonable valuation multiples<\/li>\n\n\n\n<li>Exposure to the broader banking sector recovery<\/li>\n<\/ul>\n\n\n\n<p>For income-focused investors, the stock offers an opportunity to capture relatively high cash returns while still trading at valuations that are not overly stretched.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bop\/\" data-type=\"post_tag\" data-id=\"118\">Bank of Punjab<\/a><\/strong> offers a straightforward dividend story backed by stable payouts and fair valuations. With an <strong>8%<\/strong> dividend yield, a payout ratio near <strong>50%<\/strong>, and valuation multiples close to sector averages, the stock remains an important name to watch for investors seeking income-focused opportunities in Pakistan\u2019s banking sector.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h3 class=\"wp-block-heading\"><strong>12. Engro Powergen Qadirpur Limited (EPQL)<\/strong><\/h3>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Forward Dividend Yield: 8.6%<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\"><strong>Metric<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Data Highlights<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Dividend<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Dividend Payout for CY25 was PKR 11.75 per share<\/strong>. Future dividend payouts will be directly <strong>linked to annual profitability<\/strong> rather than the clearance of historical receivables.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Latest Corporate Briefing (April 2026)<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">The company has transitioned to a <strong>hybrid model<\/strong> where profitability is tied to the energy production load factor. Management is actively pursuing <strong>three additional gas supply avenues<\/strong> (including Kandhkot and Badar gas fields) to increase the load factor to a target of <strong>70-80%<\/strong>.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Operational Note<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Load factor for 2025 was <strong>42%<\/strong>, impacted by a scheduled 20 to 22-day &#8220;Hot Gas Path Inspection&#8221; shutdown.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Engro Powergen Qadirpur Limited (EPQL)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/epql\/\" data-type=\"post_tag\" data-id=\"36\">Engro Powergen Qadirpur Limited<\/a><\/strong> is gradually transitioning toward a more performance-based operating structure, where earnings and dividend payouts are tied directly to energy production and load factors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend profile remains a key focus<\/strong><\/h3>\n\n\n\n<p>For CY25, the company distributed a <strong>dividend payout of PKR 11.75 per share<\/strong>, 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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Shift toward a hybrid operational model<\/strong><\/h3>\n\n\n\n<p>One of the biggest developments for <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/epql\/\" data-type=\"post_tag\" data-id=\"36\">EPQL<\/a><\/strong> is its transition to a <strong>hybrid business model<\/strong>, where profitability is linked to the plant\u2019s energy production load factor. To support this transition, management is actively pursuing <strong>three additional gas supply sources<\/strong>, including the <strong>Kandhkot and Badar gas fields<\/strong>. The objective is to raise the plant\u2019s load factor to around <strong>70% to 80%<\/strong>, which could significantly improve earnings potential over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Liquidity position improved during CY25<\/strong><\/h3>\n\n\n\n<p>The company\u2019s liquidity profile improved materially during 2025 after receiving a <strong>PKR 7.4 billion bullet payment in Q1 2025<\/strong>. This payment helped reduce receivables and strengthen cash flows. By year-end, overdue receivables had declined to approximately <strong>PKR 1.5 billion<\/strong>, improving overall financial visibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Quarterly and annual performance<\/strong><\/h3>\n\n\n\n<p>For the full year CY25, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/epql\/\" data-type=\"post_tag\" data-id=\"36\">EPQL<\/a><\/strong> reported an <strong>EPS of PKR 2.58<\/strong>, while the <strong>4QCY25 dividend stood at PKR 1.25 per share<\/strong>.<\/p>\n\n\n\n<p>Although profitability remained moderate, the improving liquidity position and operational restructuring provide a clearer path for future earnings recovery.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Operational challenges impacted utilization<\/strong><\/h3>\n\n\n\n<p>The company\u2019s <strong>load factor for 2025 stood at 42%<\/strong>, mainly due to a scheduled <strong>20 to 22-day Hot Gas Path Inspection shutdown<\/strong>. While this maintenance activity temporarily reduced utilization, it was necessary to maintain long-term plant efficiency and operational reliability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/epql\/\" data-type=\"post_tag\" data-id=\"36\">Engro Powergen Qadirpur Limited<\/a><\/strong> represents a dividend-focused turnaround story within Pakistan\u2019s power sector.<\/p>\n\n\n\n<p>The stock\u2019s future performance will largely depend on management\u2019s ability to improve gas supply availability and raise utilization levels. If the company successfully moves toward its targeted <strong>70%\u201380%<\/strong> load factor range, both profitability and dividend sustainability could strengthen meaningfully over time.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>11. Allied Bank Limited (ABL)<\/strong><\/h2>\n\n\n\n<p><strong>Average Forward Dividend Yield: 8.8%<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield:<\/strong> The bank\u2019s dividend yield is projected at <strong>9.0%<\/strong> to <strong>9.6%<\/strong>.<\/li>\n\n\n\n<li><strong>Balance Sheet Trends:<\/strong> Net investments grew substantially by <strong>80%<\/strong> to roughly <strong>PKR 2.04 trillion<\/strong> in 9MCY25. Net advances, however, declined by <strong>37%<\/strong> as the bank shifted its focus towards high-yielding government securities.<\/li>\n\n\n\n<li><strong>Stability:<\/strong> The bank maintains one of the strongest capital positions in the sector, with a Capital Adequacy Ratio (CAR) of <strong>31.15%<\/strong> as of mid-2025.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Allied Bank Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/abl\/\" data-type=\"post_tag\" data-id=\"119\">ABL<\/a>)<\/strong><\/h3>\n\n\n\n<p>A<strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/abl\/\" data-type=\"post_tag\" data-id=\"119\">llied Bank Limited<\/a><\/strong> stands out as a stable dividend play in the banking sector, supported by strong capital buffers and a shift toward lower-risk income streams.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Attractive dividend yield outlook<\/strong><\/h3>\n\n\n\n<p>The bank is expected to deliver a <strong>dividend yield in the range of 9.0% to 9.6%<\/strong>, making it a suitable option for investors targeting returns above <strong>8%<\/strong>. This yield is supported by an improving payout strategy, with the <strong>dividend payout ratio rising to 53%<\/strong> for the nine months ending September 2025, compared to <strong>42% in CY24<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Earnings performance remains solid<\/strong><\/h3>\n\n\n\n<p>For the nine-month period ending September 2025, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/abl\/\" data-type=\"post_tag\" data-id=\"119\">Allied Bank<\/a><\/strong> reported a <strong>profit after tax of approximately PKR 26 billion<\/strong>. The improvement in payout ratio alongside stable profitability reflects management\u2019s confidence in sustaining shareholder returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Shift in balance sheet strategy<\/strong><\/h3>\n\n\n\n<p>One of the key developments for <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/abl\/\" data-type=\"post_tag\" data-id=\"119\">ABL<\/a><\/strong> has been a shift in its asset mix. The bank significantly increased its <strong>net investments by 80% to around PKR 2.04 trillion<\/strong> during 9MCY25. At the same time, <strong>net advances declined by 37%<\/strong>, as the bank reduced exposure to lending and focused more on <strong>high-yielding government securities<\/strong>. This strategy helps lower credit risk while maintaining earnings through secure investment income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong capital position ensures stability<\/strong><\/h3>\n\n\n\n<p>A major strength for <a href=\"https:\/\/ksestocks.com\/blog\/tag\/abl\/\" data-type=\"post_tag\" data-id=\"119\"><strong>Allied Bank<\/strong><\/a> is its robust capital base. The bank reported a <strong>Capital Adequacy Ratio (CAR) of 31.15% as of mid-2025<\/strong>, 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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/abl\/\" data-type=\"post_tag\" data-id=\"119\">Allied Bank Limited<\/a><\/strong> offers a compelling mix of <strong>stable dividends and strong financial discipline<\/strong>. With yields close to <strong>10%<\/strong>, 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.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>10. Fauji Fertilizer Company Limited (FFC)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 8.8%<\/strong><\/p>\n\n\n\n<p><strong>Dividend Yield Profile<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Current Yield (2025):<\/strong> The dividend yield for 2025 stood at <strong>7.2% to 8.0%<\/strong>.<\/li>\n\n\n\n<li><strong>Forward Yield (2026E):<\/strong> Analysts project the yield to increase to <strong>10%<\/strong> in 2026 based on expected earnings growth.<\/li>\n\n\n\n<li><strong>Payout Resilience:<\/strong> The company maintained a payout ratio of <strong>72%<\/strong> in 2025, supported by robust cash flows and high-margin urea volumes.<\/li>\n<\/ul>\n\n\n\n<p><strong>Latest Corporate Briefing Highlights (March 16, 2026)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GIDC and Tax Management:<\/strong> The company has accrued <strong>Rs. 85 billion<\/strong> in GIDC, which is expected to be reduced to <strong>Rs. 71 billion<\/strong> after adjusting for government receivables. Payments are anticipated in quarterly installments with limited impact on future dividends.<\/li>\n\n\n\n<li><strong>PIA Acquisition:<\/strong> FFC is leading a consortium to acquire a <strong>75% stake<\/strong> in Pakistan International Airlines, with FFC holding a <strong>34% interest<\/strong>. The company\u2019s share of the consideration is <strong>Rs. 67 billion<\/strong>, with <strong>Rs. 31 billion<\/strong> payable by May 2026.<\/li>\n\n\n\n<li><strong>Strategic Energy Shift:<\/strong> A bankable feasibility study for a <strong>coal gasification project<\/strong> has been completed to reduce reliance on volatile natural gas supplies.<\/li>\n\n\n\n<li><strong>Network Expansion:<\/strong> The company has expanded its &#8220;Sona Centres&#8221; to <strong>244 locations<\/strong> to provide direct services and fertilizer to approximately 118,000 registered farmers.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fauji Fertilizer Company Limited (FFC)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">Fauji Fertilizer Company Limited<\/a><\/strong> remains one of the most stable and reliable dividend-paying stocks in the market, backed by its dominant industry position and resilient earnings profile.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend yield set to improve<\/strong><\/h3>\n\n\n\n<p>In 2025, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">FFC<\/a><\/strong> delivered a <strong>dividend yield of around 7.2% to 8.0%<\/strong>, slightly below the high-yield threshold but still attractive given its consistency. Looking ahead, the outlook is stronger. Analysts expect the <strong>dividend yield to rise to around 10% in 2026<\/strong>, supported by earnings growth and stable payout levels. The company maintained a <strong>payout ratio of 72% in 2025<\/strong>, reflecting a balanced approach between rewarding shareholders and retaining cash for future needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Market leadership supports stability<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">FFC<\/a><\/strong> continues to dominate the fertilizer sector, accounting for <strong>more than 40% of total industry production<\/strong>. This scale provides pricing power, operational efficiency, and a stable demand base, all of which support long-term earnings and dividend sustainability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Managing liabilities and cash flows<\/strong><\/h3>\n\n\n\n<p>One of the key areas of focus for the company is managing its obligations. <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">FFC<\/a><\/strong> has accrued <strong>Rs. 85 billion in GIDC<\/strong>, which is expected to reduce to <strong>Rs. 71 billion after adjustments<\/strong>. These payments are planned in <strong>quarterly installments<\/strong>, and management expects limited impact on future dividend payouts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strategic expansion and diversification<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">FFC<\/a><\/strong> is also exploring new growth avenues. The company is leading a consortium to acquire a <strong>75% stake in Pakistan International Airlines<\/strong>, with its own share amounting to <strong>34%<\/strong>. This translates into a commitment of <strong>Rs. 67 billion<\/strong>, with <strong>Rs. 31 billion payable by May 2026<\/strong>. In addition, the company is working on a <strong>coal gasification project<\/strong> aimed at reducing reliance on natural gas and improving long-term cost stability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strengthening the distribution network<\/strong><\/h3>\n\n\n\n<p>To further enhance its market reach, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">FFC<\/a><\/strong> has expanded its <strong>\u201cSona Centres\u201d network to 244 locations<\/strong>, serving around <strong>118,000 registered farmers<\/strong>. This strengthens its direct connection with end-users and supports consistent product demand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\">Fauji Fertilizer Company Limited<\/a><\/strong> offers a strong combination of <strong>market leadership, steady earnings, and improving dividend yield<\/strong>. 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.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>9. Indus Motor Company&nbsp;<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 9.2%<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Dividend Yield and Payout Profile<\/strong><\/h4>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/indu\/\" data-type=\"post_tag\" data-id=\"84\">Indus Motor Company <\/a><\/strong>is recognized for its shareholder-friendly policies and consistent payout history.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Historical Dividend Yield:<\/strong> For the fiscal year ending June 2025 (MY25A), the stock delivered a robust <strong>dividend yield of 10.14%<\/strong>.<\/li>\n\n\n\n<li><strong>Dividend Payout Policy:<\/strong> The company maintains a consistent payout policy, historically distributing approximately <strong>60% of its annual earnings<\/strong> as dividends to shareholders.<\/li>\n\n\n\n<li><strong>Historical and Projected Dividends per Share (DPS):<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>MY24 (Actual):<\/strong> Rs 114.70.<\/li>\n\n\n\n<li><strong>MY25 (Actual):<\/strong> Rs 176.00.<\/li>\n\n\n\n<li><strong>MY26 (Projected):<\/strong> Rs 182.00.<\/li>\n\n\n\n<li><strong>MY27 (Projected):<\/strong> Rs 297.00.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Projected Dividend Yield (MY27F):<\/strong> Based on projected earnings growth and the 60% payout policy, analysts anticipate a <strong>dividend yield of 8.46%<\/strong> for the 2027 fiscal year.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Latest Corporate Briefing and Operational Highlights<\/strong><\/h3>\n\n\n\n<p>Recent management disclosures and operational reviews highlight the company\u2019s strategic positioning:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Market Leadership:<\/strong> <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/indu\/\" data-type=\"post_tag\" data-id=\"84\">INDU<\/a><\/strong> maintains a dominant <strong>50.26% market share<\/strong> in the 1300cc and above passenger car segment.<\/li>\n\n\n\n<li><strong>Strong Order Book:<\/strong> The Toyota Corolla is currently being delivered with a <strong>lead time of 7\u20138 months<\/strong>, underscoring sustained demand momentum.<\/li>\n\n\n\n<li><strong>Localization Strategy:<\/strong> The launch of the Corolla Cross HEV represents Pakistan\u2019s first locally assembled hybrid vehicle with the <strong>highest-ever localized content<\/strong>. This reduces exposure to exchange rate volatility and supports gross margin expansion, which reached <strong>14.5%<\/strong> in MY25.<\/li>\n\n\n\n<li><strong>Cash Generation:<\/strong> The company reported high liquidity with <strong>operating cash flows of Rs 41,237 million<\/strong> (equivalent to Rs 525 per share) in MY25, providing a strong buffer for continued dividend distributions.<\/li>\n\n\n\n<li><strong>Competitive Landscape:<\/strong> Management has expressed caution regarding the <strong>import of used vehicles<\/strong>, which rose to over 42,000 units in MY25, potentially impacting domestic market share in entry-level segments. Additionally, competition is intensifying in the SUV and pickup categories from new Chinese entrants.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Indus Motor Company Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/indu\/\" data-type=\"post_tag\" data-id=\"84\">INDU<\/a>)<\/strong><\/h3>\n\n\n\n<p><a href=\"https:\/\/ksestocks.com\/blog\/tag\/indu\/\" data-type=\"post_tag\" data-id=\"84\">Indus Motor Company<\/a> is widely known for its shareholder-friendly approach, maintaining a consistent dividend policy while benefiting from strong brand positioning and demand recovery in the auto sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Consistent dividend policy and yield<\/strong><\/h3>\n\n\n\n<p>The company has a track record of rewarding shareholders, typically distributing around <strong>60% of its annual earnings as dividends<\/strong>. For the fiscal year ending June 2025, the stock delivered a <strong>dividend yield of 10.14%<\/strong>, placing it among the higher-yielding names in the market. Dividend payments have also shown strong growth, rising from <strong>Rs 114.70 in MY24 to Rs 176.00 in MY25<\/strong>. Looking ahead, dividends are projected to increase further to <strong>Rs 182.00 in MY26<\/strong> and <strong>Rs 297.00 in MY27<\/strong>. Based on these projections, the <strong>expected dividend yield for MY27 stands at 8.46%<\/strong>, supported by earnings growth and a stable payout policy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Volume recovery supports earnings outlook<\/strong><\/h3>\n\n\n\n<p>The company has seen a strong rebound in sales during FY26, which strengthens its ability to sustain future payouts. In the first eight months of FY26, total volumes are expected to reach <strong>29,440 units<\/strong>, reflecting a <strong>59% year-on-year increase<\/strong>. For February 2026 alone, sales are estimated at around <strong>3,800 units<\/strong>, up <strong>46% year-on-year<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Product mix driving growth<\/strong><\/h3>\n\n\n\n<p>Growth is largely being driven by key models. The <strong>Toyota Yaris<\/strong> is expected to see sales increase by <strong>2.4 times year-on-year<\/strong> in February 2026, accounting for roughly <strong>48% of total volumes<\/strong>, supported by strong commercial demand. At the same time, <strong>Toyota Corolla<\/strong> sales are estimated to grow by <strong>31% year-on-year<\/strong>, while the <strong>Corolla Cross HEV<\/strong> continues to contribute to the company\u2019s higher-margin product mix, despite rising competition in the hybrid segment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Market leadership and demand visibility<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/indu\/\" data-type=\"post_tag\" data-id=\"84\">Indus Motor<\/a><\/strong> maintains a strong position in the market, holding a <strong>50.26% share in the 1300cc and above passenger car segment<\/strong>. Demand remains solid, particularly for the Corolla, where delivery lead times currently stand at <strong>7 to 8 months<\/strong>, indicating a strong order book and sustained consumer interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Localization and margin support<\/strong><\/h3>\n\n\n\n<p>The company\u2019s localization strategy is another key strength. The <strong>Corolla Cross HEV<\/strong> is Pakistan\u2019s first locally assembled hybrid vehicle with high localized content, which helps reduce exposure to exchange rate fluctuations. This has supported margins, with gross margin reaching <strong>14.5% in MY25<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong cash flows enable payouts<\/strong><\/h3>\n\n\n\n<p>Indus Motor\u2019s ability to maintain high dividends is backed by strong liquidity. In MY25, the company generated <strong>operating cash flows of Rs 41,237 million<\/strong>, equivalent to <strong>Rs 525 per share<\/strong>. This strong cash position provides a solid foundation for continued dividend distributions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Competitive risks remain<\/strong><\/h3>\n\n\n\n<p>Despite its strengths, the company faces rising competition. Imports of used vehicles exceeded <strong>42,000 units in MY25<\/strong>, which could impact entry-level segments. In addition, competition is increasing in the SUV and pickup categories, particularly from new Chinese entrants, which may affect market share over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/indu\/\" data-type=\"post_tag\" data-id=\"84\">Indus Motor Company Limited<\/a><\/strong> offers a compelling combination of <strong>high dividend yield, strong cash flows, and market leadership<\/strong>. With consistent payouts above <strong>8%<\/strong>, a recovering auto cycle, and an improving product mix, the company remains a solid option for investors seeking both income and exposure to growth in Pakistan\u2019s automobile sector.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>8. Bank Al Habib Limited (BAHL)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 9.5%<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield:<\/strong> The stock offers a dividend yield of <strong>10.0%<\/strong> to <strong>10.5%<\/strong> based on recent projections.<\/li>\n\n\n\n<li><strong>Latest Corporate Briefing Data (April 10, 2026):<\/strong> Standalone EPS for CY25 was reported at <strong>Rs 27.57<\/strong>, with a total annual dividend of <strong>Rs 15 per share<\/strong>. The bank\u2019s deposit base expanded by 14.1% year-over-year, supported by a robust <strong>89% CASA ratio<\/strong>.<\/li>\n\n\n\n<li><strong>Asset Quality and Trade:<\/strong> The bank maintains strong asset quality with an NPL ratio of <strong>4.26%<\/strong> and has a significant market share in trade finance, handling over <strong>12%<\/strong> of the industry\u2019s trade volume.<\/li>\n\n\n\n<li><strong>Future Outlook:<\/strong> Management intends to open <strong>33 additional branches<\/strong> this year and expects annual deposit growth to be between <strong>16% and 17%<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bank Al Habib Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/bahl\/\" data-type=\"post_tag\" data-id=\"117\">BAHL<\/a>)<\/strong><\/h3>\n\n\n\n<p>Bank Al Habib Limited offers a balanced investment case, combining reliable dividend payouts with steady operational growth and a strong funding base.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Attractive dividend yield outlook<\/strong><\/h3>\n\n\n\n<p>The stock is expected to deliver a <strong>forward dividend yield of around 9.5%<\/strong>, with recent projections placing the yield in the <strong>10.0% to 10.5% range<\/strong>. This consistent yield makes <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bahl\/\" data-type=\"post_tag\" data-id=\"117\">BAHL<\/a><\/strong> a strong option for investors seeking returns above 8% while maintaining exposure to a stable banking franchise.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Earnings and dividend performance<\/strong><\/h3>\n\n\n\n<p>For the full year 2025, the bank reported a <strong>standalone EPS of Rs 27.57<\/strong>, along with a <strong>total annual dividend of Rs 15 per share<\/strong>. The ability to sustain payouts at this level reflects steady profitability and disciplined capital management.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong deposit base and funding mix<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bahl\/\" data-type=\"post_tag\" data-id=\"117\">BAHL<\/a><\/strong> continues to strengthen its balance sheet through deposit growth. The bank\u2019s <strong>deposit base expanded by 14.1% year-on-year<\/strong>, supported by a high-quality funding structure. A key strength is its <strong>CASA ratio of 89%<\/strong>, which indicates a large share of low-cost deposits. This helps keep funding costs low and supports margins over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Asset quality and trade finance leadership<\/strong><\/h3>\n\n\n\n<p>The bank maintains solid asset quality, with a <strong>non-performing loan (NPL) ratio of 4.26%<\/strong>, reflecting prudent risk management. It also holds a strong position in trade finance, handling <strong>over 12% of the industry\u2019s total trade volume<\/strong>, which provides a stable and recurring source of income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Growth strategy and future outlook<\/strong><\/h3>\n\n\n\n<p>Looking ahead, the bank plans to expand its footprint by opening <strong>33 new branches<\/strong>. Management is also targeting <strong>annual deposit growth of 16% to 17%<\/strong>, which should further strengthen its funding base and support future earnings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bahl\/\" data-type=\"post_tag\" data-id=\"117\">Bank Al Habib Limited<\/a><\/strong> offers a compelling mix of <strong>high dividend yield, strong deposit growth, and stable asset quality<\/strong>. With yields around <strong>10%<\/strong>, a robust CASA base, and expansion plans in place, the bank remains a solid choice for investors focused on income with steady long-term growth potential.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>7. Pakistan Tobacco Company Limited (PAKT)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 10.1%<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PAKT-STOCK-PSX.png\" data-type=\"attachment\" data-id=\"6884\">Pakistan Tobacco Company Limited<\/a><\/strong> remains one of the market\u2019s strongest cash-generating businesses, supported by pricing power, stable margins, and a long history of shareholder payouts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend yield remains among the highest on PSX<\/strong><\/h3>\n\n\n\n<p>The stock currently offers a <strong>dividend yield of around 10% to 12%<\/strong>, making it one of the highest-yielding consumer names on the Pakistan Stock Exchange.&nbsp; The company paid a cumulative dividend of approximately <strong>PKR 150\u2013155 per share over the last twelve months<\/strong>, with quarterly and interim payouts remaining frequent and consistent.&nbsp; Most recently, the board approved a <strong>second interim dividend of PKR 35 per share for 2026<\/strong>, continuing its aggressive payout trend.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong profitability continues to support payouts<\/strong><\/h3>\n\n\n\n<p><strong>Pakistan Tobacco Company<\/strong> delivered solid earnings growth during 2025 despite pressure from excise duties and affordability concerns in the broader tobacco market. For the first nine months of CY25, profitability reached <strong>PKR 24.52 billion<\/strong>, with earnings per share rising to <strong>PKR 95.96<\/strong>, reflecting a <strong>23% year-over-year increase<\/strong>.&nbsp; In the third quarter alone, earnings stood at <strong>PKR 10.26 billion<\/strong>, while EPS came in at <strong>PKR 40.15<\/strong>, supported by stronger margins, higher other income, and improved cost management.&nbsp; Full-year 2025 earnings per share were reported at around <strong>PKR 116.85<\/strong>, while net profit margins remained above <strong>21%<\/strong>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Pricing power remains a key strength<\/strong><\/h3>\n\n\n\n<p>One of the company\u2019s biggest advantages is its ability to pass on higher costs through pricing. Management has continued implementing price increases to offset rising excise duties and inflationary pressures, helping protect margins even during periods of slower volume growth.&nbsp; This pricing power is especially important in Pakistan\u2019s tobacco industry, where operating margins and cash flow generation remain significantly stronger than in many other consumer sectors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Industry risks remain<\/strong><\/h3>\n\n\n\n<p>Despite strong financial performance, the tobacco sector continues to face structural challenges. Management highlighted that the industry is dealing with affordability pressures and a growing illicit cigarette market, which is estimated to account for around <strong>57% of the industry<\/strong>.&nbsp; In addition, regulatory and taxation risks remain an important factor for long-term investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cash generation supports dividend sustainability<\/strong><\/h3>\n\n\n\n<p><strong>Pakistan Tobacco Company<\/strong>\u2019s investment case remains heavily centred around its ability to generate cash consistently. The company has maintained frequent interim dividend payments, even during periods of regulatory pressure, highlighting the strength of its operating model and liquidity profile.&nbsp; Investor discussions within Pakistan\u2019s retail market also frequently highlight the stock\u2019s strong cash flow generation and high dividend payouts, although some investors remain cautious due to liquidity, regulatory uncertainty, and sector-related ethical concerns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PAKT-STOCK-PSX.png\" data-type=\"attachment\" data-id=\"6884\">Pakistan Tobacco Company Limited<\/a><\/strong> continues to stand out as one of the highest dividend-paying consumer stocks on the PSX. With dividend yields exceeding 10%, strong margins, and consistent cash generation, the company remains attractive for income-focused investors. However, the investment case also comes with elevated regulatory and taxation risks tied to the tobacco industry.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>6. Habib Metropolitan Bank Limited (HMB)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 10.4%<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield:<\/strong> This stock delivered a healthy dividend yield of approximately <strong>10%<\/strong> in CY25.<\/li>\n\n\n\n<li><strong>Latest Corporate Briefing Data (April 15, 2026):<\/strong> The bank reported a profit after tax of <strong>PKR 22.6 billion<\/strong> for the 2025 calendar year. Despite an 8% decline in earnings, it maintained a consistent dividend payout of <strong>PKR 12 per share<\/strong>.<\/li>\n\n\n\n<li><strong>Deposit and Investment Strategy:<\/strong> Total deposits grew by 21% over the year to reach <strong>PKR 1.12 trillion<\/strong>, with a strategic focus on low-cost current accounts, which now make up 38% of the total mix. The investment portfolio is heavily weighted towards <strong>floating-rate instruments (88%)<\/strong>, protecting against interest rate volatility.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Habib Metropolitan Bank Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/hmb\/\" data-type=\"post_tag\" data-id=\"328\">HMB<\/a>)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hmb\/\" data-type=\"post_tag\" data-id=\"328\">Habib Metropolitan Bank Limited<\/a><\/strong> continues to position itself as a reliable dividend payer, supported by steady operations and a focus on balance sheet quality.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Consistent dividend yield<\/strong><\/h3>\n\n\n\n<p>The bank delivered a <strong>dividend yield of around 10% in CY25<\/strong>, making it a strong candidate for investors seeking returns above the <strong>8%<\/strong> threshold. Despite a decline in earnings, the bank maintained a <strong>consistent dividend payout of PKR 12 per share<\/strong>, reflecting management\u2019s commitment to shareholder returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Earnings performance and stability<\/strong><\/h3>\n\n\n\n<p>For the full year 2025, the bank reported a <strong>profit after tax of PKR 22.6 billion<\/strong>, marking an <strong>8% year-on-year decline<\/strong>. Even with this dip, the ability to sustain payouts indicates underlying earnings stability and a conservative capital management approach.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Deposit growth and funding strategy<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hmb\/\" data-type=\"post_tag\" data-id=\"328\">HMB<\/a><\/strong> recorded strong growth in deposits, which increased by <strong>21% year-on-year to PKR 1.12 trillion<\/strong>. The bank is also focusing on improving its funding mix. <strong>Low-cost current accounts now make up 38% of total deposits<\/strong>, which helps reduce funding costs and supports margins over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Investment positioning and rate protection<\/strong><\/h3>\n\n\n\n<p>The bank\u2019s investment strategy is tilted toward stability. Around <strong>88% of its portfolio is allocated to floating-rate instruments<\/strong>, which provides a hedge against interest rate changes and helps maintain income in a volatile rate environment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Operational efficiency and asset quality<\/strong><\/h3>\n\n\n\n<p>The <strong>cost-to-income ratio increased to 52.5% in CY25<\/strong>, mainly due to expansion in branch networks and ongoing investment in digital infrastructure. On the asset quality front, the bank remains stable, maintaining a <strong>coverage ratio above 90% against non-performing loans<\/strong>, indicating prudent risk management.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/hmb\/\" data-type=\"post_tag\" data-id=\"328\">Habib Metropolitan Bank Limited<\/a><\/strong> offers a balanced mix of <strong>steady dividend income and operational stability<\/strong>. With a yield of around <strong>10%<\/strong>, strong deposit growth, and a cautious investment strategy, the bank remains a solid option for investors seeking reliable income along with controlled risk exposure.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. National Bank of Pakistan (NBP)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 10.5%<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield and Payout:<\/strong> This stock offered the highest dividend yield in the banking sector during the 2025 calendar year at <strong>16%<\/strong>, significantly outperforming its peers. It maintained a payout ratio of <strong>87%<\/strong>, supported by a dividend per share (DPS) of <strong>Rs 35<\/strong>, which was the highest in the sector.<\/li>\n\n\n\n<li><strong>Balance Sheet Strength:<\/strong> Average deposits grew 12% year-over-year to <strong>Rs 4.3 trillion<\/strong> in CY25, while the investment base increased to <strong>Rs 4.9 trillion<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>National Bank of Pakistan (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/nbp\/\" data-type=\"post_tag\" data-id=\"113\">NBP<\/a>)<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/nbp\/\" data-type=\"post_tag\" data-id=\"113\">National Bank of Pakistan<\/a><\/strong> has emerged as a leading high-yield banking stock, backed by strong earnings growth and a generous payout strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Sector-leading dividend yield<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/nbp\/\" data-type=\"post_tag\" data-id=\"113\">NBP<\/a><\/strong> offered the <strong>highest dividend yield in the banking sector during CY25 at 16%<\/strong>, significantly outperforming its peers. This was supported by a <strong>payout ratio of 87%<\/strong> and a <strong>dividend per share of Rs 35<\/strong>, the highest in the sector. The bank\u2019s ability to maintain such a high payout highlights strong underlying cash generation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Earnings growth drives payouts<\/strong><\/h3>\n\n\n\n<p>The bank reported a sharp increase in profitability during CY25. <strong>Earnings per share rose to Rs 40<\/strong>, reflecting a <strong>224% year-on-year growth<\/strong>. This surge was mainly driven by a <strong>45% increase in net interest income (NII)<\/strong>, along with a <strong>30% decline in non-interest expenses<\/strong>. However, it is important to note that part of this growth was influenced by one-time pension fund adjustments in the previous year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Balance sheet expansion remains strong<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/nbp\/\" data-type=\"post_tag\" data-id=\"113\">NBP<\/a><\/strong> also showed solid growth in its balance sheet. <strong>Average deposits increased by 12% year-on-year to Rs 4.3 trillion<\/strong>, indicating strong customer inflows and funding stability. At the same time, the bank\u2019s <strong>investment portfolio expanded to Rs 4.9 trillion<\/strong>, providing a strong base for future earnings through interest income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><a href=\"https:\/\/ksestocks.com\/blog\/tag\/nbp\/\" data-type=\"post_tag\" data-id=\"113\"><strong>National Bank of Pakistan<\/strong><\/a> stands out as a <strong>high dividend yield leader in the banking sector<\/strong>. With a <strong>16%<\/strong> yield, strong earnings growth, and an expanding balance sheet, the bank offers a compelling opportunity for investors seeking income-focused exposure, although the sustainability of such high payouts will depend on normalized earnings going forward.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. <\/strong><strong>Pakistan Oilfields Limited (POL)&nbsp;<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield: 10.9%<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend Profile and Yield Outlook<\/strong><\/h3>\n\n\n\n<p>POL is characterized as a &#8220;premium yield play&#8221; and the only &#8220;safe dividend play&#8221; within the E&amp;P coverage, primarily due to its strong operating leverage and relative insulation from circular debt.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Average Payout Ratio:<\/strong> POL has maintained an average payout ratio of approximately <strong>80% to 90%<\/strong> over the past five years.<\/li>\n\n\n\n<li><strong>Dividend Yield Forecasts:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>FY26e:<\/strong> 11.7% to 12%.<\/li>\n\n\n\n<li><strong>FY27e:<\/strong> 12.3%.<\/li>\n\n\n\n<li><strong>FY28e:<\/strong> 13.2%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Dividend Per Share (DPS) Forecasts:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>FY25a:<\/strong> PKR 75.0.<\/li>\n\n\n\n<li><strong>FY26e:<\/strong> PKR 74.9.<\/li>\n\n\n\n<li><strong>FY27e:<\/strong> PKR 78.4.<\/li>\n\n\n\n<li><strong>FY28e:<\/strong> PKR 84.4.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Yield Rationale:<\/strong> The company&#8217;s ability to sustain high payouts is supported by a robust balance sheet and superior cash flow conversion. It maintains a <strong>Free Cash Flow (FCF) ratio exceeding 110%<\/strong> over the last five years, with cash flow per flowing barrel nearly double the sector average.<\/li>\n\n\n\n<li><strong>Cash Reserves:<\/strong> As of 1Q26, POL held significant liquid cash and financial assets amounting to <strong>PKR 112 billion<\/strong> (equivalent to PKR 396 per share), which represents approximately 63%\u201367% of its total market capitalization.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Operational and Corporate Briefing Highlights<\/strong><\/h3>\n\n\n\n<p>POL&#8217;s operations remain oil-heavy, which provides better wellhead price realizations compared to gas-focused peers.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Production Mix:<\/strong> Crude oil contributes <strong>over 50%<\/strong> of the company&#8217;s top line, while natural gas accounts for roughly <strong>28%<\/strong>.<\/li>\n\n\n\n<li><strong>Asset Concentration:<\/strong> The <strong>TAL Block<\/strong> is the company\u2019s primary contributor, accounting for <strong>60% of total production<\/strong>.<\/li>\n\n\n\n<li><strong>Recent Well Successes:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Makori Deep-03:<\/strong> Recently drilled well that flowed <strong>22.08 MMSCFD<\/strong> of gas and <strong>2,112 bbl\/d<\/strong> of condensate.<\/li>\n\n\n\n<li><strong>Razgir-1:<\/strong> Delivered flows of <strong>25.1 MMSCFD<\/strong> of gas and <strong>333 bbl\/d<\/strong> of condensate.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reserves Replacement:<\/strong> For FY25, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">POL<\/a><\/strong> reported a sector-leading reserve replacement ratio (RRR) exceeding <strong>200%<\/strong>, primarily driven by a sharp upward revision in the <strong>Jhandial field<\/strong>.<\/li>\n\n\n\n<li><strong>Risk Mitigation:<\/strong> Unlike its peers, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">POL<\/a><\/strong> is largely shielded from circular debt because a high proportion of its sales are liquid and centered around its associate refinery rather than government-owned gas utilities.<\/li>\n<\/ul>\n\n\n\n<p><strong>Pakistan Oilfields Limited (POL)<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">Pakistan Oilfields Limited<\/a><\/strong> is widely regarded as one of the most reliable dividend-paying companies in the exploration and production (E&amp;P) space. Its ability to generate strong cash flows and maintain high payouts makes it a preferred choice for income-focused investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend profile remains a key strength<\/strong><\/h3>\n\n\n\n<p>POL has consistently maintained a <strong>payout ratio of around 80% to 90%<\/strong> over the past five years, reflecting its commitment to returning cash to shareholders. The dividend outlook remains strong. The company is expected to deliver a <strong>dividend yield of 11.7% to 12% in FY26<\/strong>, rising to <strong>12.3% in FY27<\/strong> and further to <strong>13.2% in FY28<\/strong>. In line with this, projected dividends stand at <strong>PKR 74.9 for FY26<\/strong>, increasing to <strong>PKR 78.4 in FY27<\/strong> and <strong>PKR 84.4 in FY28<\/strong>, compared to <strong>PKR 75.0 in FY25<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong cash flows support payouts<\/strong><\/h3>\n\n\n\n<p>The sustainability of these dividends is backed by strong cash generation. <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">POL<\/a><\/strong> has maintained a <strong>free cash flow ratio exceeding 110%<\/strong> over the past five years, with cash flow per flowing barrel nearly double the sector average. This high cash conversion allows the company to continue paying attractive dividends without putting pressure on its balance sheet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Stable financial performance<\/strong><\/h3>\n\n\n\n<p>The company\u2019s financials reflect consistency and resilience. In FY25, POL reported <strong>net sales of PKR 57,117 million<\/strong> and a <strong>profit after tax of PKR 24,182 million<\/strong>, translating into an <strong>EPS of PKR 85.2<\/strong>. For FY26, net sales are projected at <strong>PKR 55,905 million<\/strong>, with <strong>profit after tax of PKR 23,608 million<\/strong> and <strong>EPS of PKR 83.2<\/strong>. While a slight decline is expected, overall profitability remains strong. Margins also remain robust, with an <strong>EBITDAX margin of 75% in FY25<\/strong>, expected to moderate slightly to <strong>70% in FY26<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A cash-rich balance sheet adds comfort<\/strong><\/h3>\n\n\n\n<p>One of POL\u2019s biggest strengths is its liquidity. As of 1QFY26, the company held <strong>PKR 112 billion in cash and financial assets<\/strong>, equivalent to <strong>PKR 396 per share<\/strong>. This represents roughly <strong>63% to 67% of its total market capitalization<\/strong>, highlighting an exceptionally strong balance sheet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Operational strengths and production mix<\/strong><\/h3>\n\n\n\n<p>Operationally, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">POL<\/a><\/strong> benefits from a favorable production mix. <strong>Crude oil contributes over 50% of its revenue<\/strong>, while <strong>natural gas accounts for around 28%<\/strong>. This oil-heavy mix allows the company to benefit from better pricing compared to gas-focused peers. The <strong>TAL Block remains the core asset<\/strong>, contributing around <strong>60% of total production<\/strong>, making it central to the company\u2019s output and earnings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Recent exploration success supports growth<\/strong><\/h3>\n\n\n\n<p>Recent drilling activity has also been encouraging. The <strong>Makori Deep-03 well<\/strong> delivered flows of <strong>22.08 MMSCFD of gas and 2,112 barrels per day of condensate<\/strong>, while the <strong>Razgir-1 well<\/strong> produced <strong>25.1 MMSCFD of gas and 333 barrels per day of condensate<\/strong>. In addition, POL reported a <strong>reserve replacement ratio exceeding 200% in FY25<\/strong>, driven largely by an upward revision in the Jhandial field. This indicates strong sustainability of its resource base.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Limited exposure to circular debt<\/strong><\/h3>\n\n\n\n<p>Unlike many peers in the energy sector, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">POL<\/a><\/strong> remains relatively insulated from circular debt. A large portion of its sales is liquid and linked to its associate refinery, rather than government-owned gas utilities. This reduces payment delays and improves cash flow visibility, further strengthening its dividend profile.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong>Pakistan Oilfields Limited<\/strong> offers a compelling combination of <strong>high dividend yield, strong cash flows, and a robust balance sheet<\/strong>. With yields consistently above <strong>10%<\/strong>, strong liquidity, and operational stability, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/pol\/\" data-type=\"post_tag\" data-id=\"202\">POL<\/a><\/strong> stands out as one of the most reliable income-generating stocks for investors seeking returns above 8% in Pakistan\u2019s market.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Engro Fertilizers Limited (EFERT)<\/strong><\/h3>\n\n\n\n<p><strong>Dividend Yield Profile<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Current Yield (2025):<\/strong> The stock offered a dividend yield of approximately <strong>9% to 10%<\/strong> based on 2025 distributions.<\/li>\n\n\n\n<li><strong>Forward Yield (2026E):<\/strong> Projections for 2026 estimate an attractive dividend yield of <strong>10.7% to 11%<\/strong>.<\/li>\n\n\n\n<li><strong>Long-term Outlook (2027F):<\/strong> The yield is forecasted to potentially rise to <strong>11.8% or 12%<\/strong> by 2027.<\/li>\n<\/ul>\n\n\n\n<p><strong>Latest Corporate Briefing Highlights (March 30, 2026)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cash Retention Strategy:<\/strong> The board moderated the payout ratio to <strong>89%<\/strong> (down from 102% in 2024) to meet <strong>Rs. 19.6 billion<\/strong> in GIDC liabilities and super tax obligations.<\/li>\n\n\n\n<li><strong>Strategic Projects:<\/strong> Phase 1 of the industry-wide <strong>Pressure Enhancement Facility<\/strong> is complete, and the company raised debt to fund its 33% stake in this <strong>$300 million<\/strong> project to secure a long-term gas supply.<\/li>\n\n\n\n<li><strong>Operational Efficiency:<\/strong> Inventory levels improved to <strong>23%<\/strong> during the year, although high inventory finance and freight costs impacted overall annual margins.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Engro Fertilizers Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/efert\/\" data-type=\"post_tag\" data-id=\"27\">EFERT<\/a>)<\/strong><\/h3>\n\n\n\n<p><strong>Forward Dividend Yield: 11.4%<\/strong><\/p>\n\n\n\n<p><strong>Engro Fertilizers Limited<\/strong> remains one of the key dividend plays in the market, supported by strong cash flows, leading market share, and a clear focus on sustaining payouts while managing long-term obligations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend profile remains attractive<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/efert\/\" data-type=\"post_tag\" data-id=\"27\">EFERT<\/a><\/strong> continues to offer a compelling yield story. Based on 2025 payouts, the stock delivered a <strong>dividend yield of around 9% to 10%<\/strong>, placing it comfortably above the <strong>8%<\/strong> threshold. Looking ahead, the outlook remains strong. The <strong>forward dividend yield for 2026 is projected at 10.7% to 11%<\/strong>, with expectations of further improvement to <strong>11.8%\u201312% by 2027<\/strong>. This consistent yield trajectory makes it a preferred choice for income-focused investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Full-year performance highlights stability<\/strong><\/h3>\n\n\n\n<p>For the full year 2025, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/efert\/\" data-type=\"post_tag\" data-id=\"27\">EFERT<\/a><\/strong> reported a <strong>basic EPS of Rs. 16.95<\/strong>, along with a <strong>total dividend of Rs. 15.0 per share<\/strong>. The company also strengthened its position in the urea market, increasing its share to <strong>34% from 32% in the previous year<\/strong>. This expansion reflects strong demand and effective distribution within the domestic market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cash management and payout strategy<\/strong><\/h3>\n\n\n\n<p>One of the key developments has been a more balanced approach to cash distribution. The company adjusted its payout ratio to <strong>89%<\/strong>, down from <strong>102% in 2024<\/strong>, to manage upcoming obligations, including <strong>Rs. 19.6 billion in GIDC liabilities and super tax<\/strong>. This shift suggests a focus on maintaining financial stability while still offering attractive dividends.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strategic investments for long-term supply<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/efert\/\" data-type=\"post_tag\" data-id=\"27\">EFERT<\/a><\/strong> is also investing to secure its long-term operational base. The company has completed <strong>Phase 1 of the Pressure Enhancement Facility<\/strong>, an industry-wide project aimed at ensuring gas availability. To support this, it has raised debt for its <strong>33% stake in the $300 million project<\/strong>, which is expected to strengthen future production continuity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Operational efficiency and margin pressures<\/strong><\/h3>\n\n\n\n<p>On the operational side, inventory levels improved to <strong>23% during the year<\/strong>, indicating better supply management. However, higher <strong>inventory financing and freight costs<\/strong> weighed on margins, which explains the pressure seen in profitability despite strong revenue growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/efert\/\" data-type=\"post_tag\" data-id=\"27\">Engro Fertilizers Limited<\/a><\/strong> offers a strong combination of <strong>high dividend yield and market leadership<\/strong>. With a yield consistently above <strong>8%<\/strong>, improving market share, and strategic investments to secure future operations, the company remains well-positioned for investors seeking stable income along with long-term value.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Bank Alfalah Limited (BAFL)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dividend Yield:<\/strong> The bank is projected to deliver an attractive dividend yield of <strong>11.0%<\/strong> over the next 12 months.<\/li>\n\n\n\n<li><strong>Latest Corporate Briefing Data (March 31, 2026):<\/strong> For the full year 2025, consolidated EPS stood at <strong>PKR 17.63<\/strong>. Despite a year-over-year profit decline of 30%, the bank increased its total annual dividend payout by 24% to <strong>PKR 10.50 per share<\/strong>. Total deposits grew by 17% during the year, reaching <strong>PKR 2.5 trillion<\/strong>.<\/li>\n\n\n\n<li><strong>Operational Indicators:<\/strong> Management aims for a normalized cost-to-income ratio of <strong>50-60%<\/strong>. In the first half of CY25, digital throughput surged 80% year-over-year to <strong>PKR 9.1 trillion<\/strong>, reflecting a heavy investment in digital transformation that accounts for roughly 9.2% of its operating expenses. The bank also maintains a clean loan portfolio with an infection ratio of <strong>4.1%<\/strong> and a strong provision coverage of <strong>108%<\/strong> as of June 2025.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bank Alfalah Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/bafl\/\" data-type=\"post_tag\" data-id=\"132\">BAFL<\/a>)<\/strong><\/h3>\n\n\n\n<p><strong>Forward Dividend Yield: 16.9%<\/strong><\/p>\n\n\n\n<p><strong>Bank Alfalah Limited<\/strong> presents a solid mix of income and growth, making it a compelling option for investors seeking dividend yields above 8%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strong dividend yield outlook<\/strong><\/h3>\n\n\n\n<p>The bank is expected to deliver a <strong>dividend yield of around 11.0% over the next 12 months<\/strong>, placing it among the higher-yielding names in the market. This is supported by a consistent payout strategy. For the full year 2025, the bank declared a <strong>total dividend of PKR 10.50 per share<\/strong>, marking a <strong>24% increase year-on-year<\/strong>, even though profits declined during the period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Earnings performance and deposit growth<\/strong><\/h3>\n\n\n\n<p>In 2025, <strong>Bank Alfalah<\/strong> reported a <strong>consolidated EPS of PKR 17.63<\/strong>, while profitability declined by <strong>30% year-on-year<\/strong>. Despite this, the bank continued to strengthen its core operations. Total deposits grew by <strong>17%<\/strong>, reaching <strong>PKR 2.5 trillion<\/strong>, highlighting strong customer confidence and an expanding funding base.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Operational efficiency and digital growth<\/strong><\/h3>\n\n\n\n<p>The bank is actively working to improve efficiency. Management is targeting a <strong>cost-to-income ratio in the range of 50\u201360%<\/strong>, which suggests a focus on better cost control in the coming periods. At the same time, digital transformation remains a key growth driver. In the first half of 2025, <strong>digital throughput surged 80% year-on-year to PKR 9.1 trillion<\/strong>. This reflects consistent investment in technology, which accounts for around <strong>9.2% of operating expenses<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Asset quality remains strong<\/strong><\/h3>\n\n\n\n<p>Another important strength is the bank\u2019s asset quality. As of June 2025, it maintained an <strong>infection ratio of 4.1%<\/strong> and a <strong>provision coverage of 108%<\/strong>, indicating a relatively clean loan book and strong risk management.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bafl\/\" data-type=\"post_tag\" data-id=\"132\">Bank Alfalah Limited<\/a><\/strong> offers a combination of <strong>attractive dividend yield and steady operational growth<\/strong>. With a projected yield of around <strong>11%<\/strong>, strong deposit expansion, improving efficiency targets, and a growing digital platform, the bank remains well-positioned for investors seeking reliable income along with long-term stability.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. Kot Addu Power Company Limited (KAPCO)<\/strong><\/h2>\n\n\n\n<p><strong>Forward Dividend Yield:&nbsp; 22.2%<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\"><strong>Metric<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Data Highlights<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Dividend Yield Focus<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Estimated Dividend Yield of 13.7%<\/strong> for both FY26 and FY27. The company is expected to maintain an attractive yield even as it pursues portfolio diversification.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Projected DPS<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>PKR 5.00<\/strong> for FY26 and FY27.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Latest Corporate Briefing (Feb 2026)<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">The <strong>Tri-Partite Power Purchase Agreement (TPPA)<\/strong> for 500 MW was approved and issued in late 2025. The PPA has been renewed for a <strong>3-year period ending in 2028<\/strong> under a hybrid take-and-pay model. KAPCO has also submitted a binding offer to acquire a <strong>42.03% stake in Al-Abbas Cement Limited (ACPL)<\/strong> to diversify its earnings base.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Kot Addu Power Company Limited (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">KAPCO<\/a>)<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">Kot Addu Power Company Limited<\/a><\/strong> is emerging as an attractive high-yield stock, offering strong dividend visibility while also working toward stabilizing its long-term earnings base.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Dividend yield remains the key attraction<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">KAPCO<\/a><\/strong>\u2019s investment case is largely centered around its dividend profile. The company is expected to deliver an <strong>estimated dividend yield of 13.7% for both FY26 and FY27<\/strong>, making it one of the higher-yielding stocks in the market. In line with this, projected dividends stand at <strong>PKR 5.00 per share for both FY26 and FY27<\/strong>, suggesting consistency in payouts even as the company navigates operational changes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>PPA renewal supports earnings visibility<\/strong><\/h3>\n\n\n\n<p>A major development for <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">KAPCO<\/a><\/strong> has been the renewal of its power agreement. The <strong>Tri-Partite Power Purchase Agreement (TPPA) for 500 MW<\/strong> was approved and issued in late 2025, extending operations for a <strong>three-year period until 2028<\/strong>.<\/p>\n\n\n\n<p>The agreement follows a <strong>hybrid take-and-pay model<\/strong>, which provides a more stable revenue structure compared to previous arrangements. This renewal plays a key role in restoring earnings visibility for the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Balance sheet strength improves outlook<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">KAPCO<\/a><\/strong>\u2019s financial position has improved significantly. As of September 2025, the company reported a <strong>net cash position of PKR 45.1 per share<\/strong>, reflecting strong liquidity. In addition, it has <strong>fully repaid its short-term debt<\/strong>, reducing it from <strong>PKR 31.1 billion to zero<\/strong>. This deleveraging not only lowers financial risk but also supports the company\u2019s ability to maintain dividend payouts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Turnaround expected in profitability<\/strong><\/h3>\n\n\n\n<p>With the reinstatement of the PPA, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">KAPCO<\/a><\/strong> is expected to return to profitability. The company is projecting a <strong>gross profit of PKR 548 million in FY26<\/strong>, marking a turnaround after a period of pressure on earnings. This recovery strengthens the case for sustained dividends in the near term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Diversification into the cement sector<\/strong><\/h3>\n\n\n\n<p>To reduce reliance on power generation alone, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">KAPCO<\/a><\/strong> is also exploring diversification. The company has submitted a <strong>binding offer to acquire a 42.03% stake in Al-Abbas Cement Limited (ACPL)<\/strong>. If completed, this move would provide exposure to another cyclical sector and help diversify earnings streams over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h3>\n\n\n\n<p><strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kapco\/\" data-type=\"post_tag\" data-id=\"11\">Kot Addu Power Company Limited<\/a><\/strong> offers a compelling mix of <strong>high dividend yield and improving fundamentals<\/strong>. With a yield of over <strong>13%<\/strong>, 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%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>High dividend yield stocks often attract investors looking for steady income along with potential capital appreciation. In Pakistan\u2019s power sector, Kot Addu Power Company Limited stands out as a strong yield play, supported by improving fundamentals and strategic diversification. 15. The Hub Power Company Limited (HUBC) Forward Dividend Yield: 8.0% Metric Data Highlights Dividend Yield [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":12896,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[119,132,117,118,27,36,89,328,33,11,113,430,202,278,279],"class_list":["post-12884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-psx-blog","tag-abl","tag-bafl","tag-bahl","tag-bop","tag-efert","tag-epql","tag-ffc","tag-hmb","tag-hubc","tag-kapco","tag-nbp","tag-pakt","tag-pol","tag-tel","tag-tnptl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2026\/05\/top-15-stocks-with-dividend-yield-940x445.jpg",940,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2026\/05\/top-15-stocks-with-dividend-yield-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2026\/05\/top-15-stocks-with-dividend-yield-300x251.jpg",300,251,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2026\/05\/top-15-stocks-with-dividend-yield.jpg",940,788,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/12884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=12884"}],"version-history":[{"count":8,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/12884\/revisions"}],"predecessor-version":[{"id":12898,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/12884\/revisions\/12898"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/12896"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=12884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=12884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=12884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}