Top High-Dividend Paying Stocks on PSX (Commercial Banks, Fertilizer, Power)
Dividends are a large part of why many Pakistani investors buy shares rather than leave money in the bank. Commercial banks, fertilizer makers and power producers are the three sectors that most often come up when people look for income stocks on the Pakistan Stock Exchange (PSX). This guide shows where those sectors’ yields stand today, what the recent payouts look like, how dividends are taxed, and why a high yield can be a warning sign rather than a bargain.
This is general information, not investment advice. Dividend yield changes every time the share price or the payout changes. The table below is a snapshot dated 27 October 2026 from a public screener, and its own page warns that prices and yields may be delayed. Check the current price and the latest company announcement before you act.
How to Read a Dividend Yield
Dividend yield is the annual dividend per share divided by the current share price. Two things move it:
- The payout. If a company raises or cuts its dividend, the yield changes.
- The price. If the price falls, the yield rises even though nothing was paid out more. A very high yield can mean the market expects the dividend to be cut.
So a yield is only useful alongside the company’s earnings, its payout history and, for the next payment, what the board has announced. See our PSX dividend investing guide for the basics.
Yield Snapshot by Sector
All figures below are from the Ticker Analysts list of the top 40 PSX stocks by dividend yield, “last updated 27 October 2026”. The page lists P/E and market capitalisation but not dividend per share or payout ratio, and its price column is blank, so we cannot recompute the yields.
Commercial banks
| Bank | Dividend yield | P/E | Market cap (Rs) |
|---|---|---|---|
| National Bank of Pakistan (NBP) | 23.17% | 4.3 | 321.4bn |
| Habib Metropolitan Bank (HMB) | 12.68% | 4.9 | 99.2bn |
| BankIslami Pakistan (BIPL) | 11.69% | 7.2 | 26.1bn |
| The Bank of Punjab (BOP) | 11.39% | 4.8 | 89.1bn |
| Bank Alfalah (BAFL) | 10.32% | 3.2 | 87.9bn |
| Bank AL Habib (BAHL) | 10.04% | 5.9 | 166.1bn |
| Standard Chartered Bank (Pakistan) | 10.01% | 9.7 | 232.0bn |
| MCB Bank | 9.65% | 7.7 | 442.1bn |
| Allied Bank (ABL) | 9.48% | 5.6 | 193.2bn |
| Soneri Bank | 8.38% | 4.4 | 19.7bn |
| Habib Bank (HBL) | 8.15% | 6.2 | 413.8bn |
| United Bank (UBL) | 7.85% | 6.8 | 1,021.4bn |
Fertilizer
| Company | Dividend yield | P/E | Market cap (Rs) |
|---|---|---|---|
| Fauji Fertilizer (FFC) | 7.68% | 8.8 | 759.3bn |
| Engro Fertilizers (EFERT) | 6.43% | 11.9 | Not stated |
| Fatima Fertilizer | 1.89% | 6.1 | Not stated |
Power
| Company | Dividend yield | P/E | Market cap (Rs) |
|---|---|---|---|
| Saif Power (SPWL) | 20.09% | 28.1 | 3.4bn |
| Kot Addu Power (KAPCO) | 12.54% | 8.4 | 21.1bn |
| Engro Powergen Qadirpur (EPQL) | 11.46% | 10.8 | 7.8bn |
| The Hub Power Company (HUBC) | 10.62% | 4.9 | 244.3bn |
Some sources describe the same stocks with different yields. One investing blog dated 16 August 2026 gave “typical” ranges such as 12% to 15% for MCB and 12% to 16% for HBL, but it names no data source, gives no as-of prices and does not explain how the ranges were calculated. We did not use it. The screener figures above are lower, and are the ones we could tie to a date.
What the Recent Payouts Look Like
Banks
Banks pay interim dividends through the year, so annual figures add up quarterly payments.
| Bank | Dividend information | Source period |
|---|---|---|
| MCB | Rs 36 per share in calendar 2025; Rs 27 in the first nine months of 2026 | CY25 and 9M26 |
| United Bank | Rs 29.5 in calendar 2025; Rs 24 in the first nine months of 2026 | CY25 and 9M26 |
| Meezan Bank | Rs 28 in calendar 2025; Rs 23.50 in the first nine months of 2026 | CY25 and 9M26 |
| NBP | Rs 35 in calendar 2025 | CY25 |
| HBL | Rs 12 per share already paid in 2026, plus a Rs 6 interim dividend for Q3 2026 | 9M26 |
Brokerage research reported that the aggregate bank payout in 2025 was the highest in the sector’s history, and that the average payout ratio in the first half of 2026 rose to 54.5% from 51.9% a year earlier (a projection-based estimate). Banks pay out about half their profit, so their dividends follow their earnings. That link is the subject of Investing in the PSX Banking Sector: How Interest Rates Drive Bank Profitability.
Meezan Bank (MEBL) does not appear in the screener’s top 40 yields. That does not mean it is a poor payer, only that its share price is high relative to its dividend.
Fertilizer: FFC as an example
Fauji Fertilizer pays several times a year. One public aggregator lists these cash dividends:
| Ex-dividend date | Cash dividend (Rs per share) | Pay date |
|---|---|---|
| 10 Aug 2026 | 14.50 | 19 Aug 2026 |
| 11 May 2026 | 8.50 | 20 May 2026 |
| 6 Mar 2026 | 8.50 | 25 Mar 2026 |
| 3 Nov 2025 | 9.50 | 13 Nov 2025 |
| 7 Aug 2025 | 12.00 | 19 Aug 2025 |
| 8 May 2025 | 7.00 | 16 May 2025 |
| 20 Mar 2025 | 21.00 | 4 Apr 2025 |
The four payments from November 2025 to August 2026 add up to Rs 41. The same aggregator’s summary says the annual dividend is Rs 37, with a trailing yield of 6.74% and a payout ratio of about 63%, and does not explain the gap. The screener above shows 7.68%. Both are trailing numbers calculated on different dates and prices, so treat the yield as roughly 7%, and use the payments themselves rather than either percentage.
Power
We did not retrieve payout histories for the power stocks, so we do not state dividend-per-share figures for them. Two things worth knowing:
- The yields on the list range from about 10% for the largest name to over 20% for a very small company with a P/E of 28. When a yield is that far above its peers and the earnings do not cover it, the figure is more likely a sign of a falling price than of a reliable income stream.
- Independent power producers that depend on payments from the government’s power purchaser carry a different kind of risk from banks, which earn their profit from interest margins. Read each company’s latest results for receivables and payout statements.
Tax on Dividends
Dividends are taxed at source under section 150 of the Income Tax Ordinance. The FBR’s withholding card (updated to 30 June 2026 per the Finance Act 2026) shows:
| Case | On the Active Taxpayer List (ATL) | Not on the ATL |
|---|---|---|
| Most company dividends and other cases not separately listed | 15% | 30% |
| Dividends from independent power producers reimbursed by the government’s power purchaser (CPPA-G) | 7.5% | 15% |
| Company that pays no tax because of exemptions, loss carry-forward or tax credits | 25% | 50% |
| Mutual funds (income from debt) | 25% | 50% |
| Mutual funds (equity income) | 15% | 30% |
The reduced 7.5% rate applies only to dividends from independent power producers that are reimbursed by CPPA-G. Check the company’s own tax notice before assuming it applies to a particular stock: for example, Hub Power publishes notices on dividend withholding. The 25% rate for companies that pay no tax is easy to miss, and it matters when a company is using up past losses or exemptions.
Being on the ATL halves the tax on every dividend. See How to Check Your FBR ATL Status Online and our filer vs non-filer withholding tax guide. Capital gains on the shares are taxed separately. See How Commercial Bank Dividends Work on PSX.
Worked example
You own 1,000 shares and a company pays Rs 10 per share.
| ATL (15%) | Non-ATL (30%) | |
|---|---|---|
| Gross dividend | Rs 10,000 | Rs 10,000 |
| Tax withheld | Rs 1,500 | Rs 3,000 |
| Cash received | Rs 8,500 | Rs 7,000 |
So a 10% headline yield is about 8.5% after tax for a filer and 7% for a non-filer.
A Checklist Before Buying for Dividends
- Look at earnings cover. Is the dividend comfortably below earnings per share? Banks in the table above pay about half of profit, which leaves room.
- Check five years of payments. Has the company paid every year, and has the amount been stable?
- Watch what drives profit. Bank profit depends on interest rates, fertilizer profit on input and product pricing, and power profit on payments from the government’s power purchaser. A change in any of these changes the dividend.
- Be wary of the extremes. A yield of 20% or more on a small company is usually a price signal.
- Account for the ex-dividend price drop. The share price normally falls by about the dividend on the ex-date, so buying just before a payout does not create free money.
- Count tax and costs. Brokerage commission and withholding reduce what you keep.
- Mind concentration. The three sectors here are not independent of the economy. Rate decisions, gas and power pricing, and government policy hit them at the same time.
- Check Shariah status if it matters. The screener marks Hub Power, Engro Fertilizers, Fauji Fertilizer, Engro Powergen Qadirpur and BankIslami as compliant and most conventional banks as not.
Use the PakGains dashboard alongside the charts page to keep an eye on the market while you track your shortlist.
Final Thoughts
Banks, fertilizer and power have all paid large dividends in recent years, but they do so for different reasons and carry different risks. Banks pay out roughly half of profits that depend on interest rates. Fertilizer producers like FFC pay several times a year but with changing amounts. Power producers’ payouts depend on how reliably the government’s power purchaser pays them. A high yield is a starting point for research, not a recommendation, and what you keep depends on your filer status.
Related Guides on PakGains
- Explore the PSX hub, the stock market hub, and the start-here page
- PSX Dividend Investing Guide
- Investing in the PSX Banking Sector
- How Commercial Bank Dividends Work on PSX
- Capital Gains Tax on PSX Stocks
- Filer vs Non-Filer Withholding Tax
- PSX Top Gainers and Losers Explained
- Pakistan Stock Market (PSX) Beginners Guide
- The PakGains tools page and dashboard
Sources: Best Dividend Stocks on PSX 2026, Ticker Analysts, Best Fertilizer Stocks on PSX 2026, Ticker Analysts, Fauji Fertilizer dividend history, StockAnalysis, Pakistan’s Banking Sector: Navigating the Rate Cycle, Kahloon Journal, Pakistan’s listed banks post PKR 505 billion profit, Nukta, HBL 9M26 results, Business Recorder, Bank profit sinks on provisions, Express Tribune, FBR Withholding Tax Rates Card, updated to 30 June 2026, Pakistan’s dividend tax collection rises 21%, Nukta
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About Sherjeel Islam
Sherjeel Islam is the founder and lead developer behind PakGains. With an extensive background in software engineering, database architecture, and enterprise data systems, he specializes in building real-time market tracking tools and analytical models for Pakistani investors. Sherjeel focuses on bridging the gap between raw market data and practical financial tools, writing in-depth guides on market indicators, cryptocurrency frameworks, and cross-border financial technology.
Disclaimer: The content on PakGains is for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. Financial markets, cryptocurrencies, and banking services involve inherent risk. Always conduct your own research or consult with a licensed financial professional before making financial decisions.