5 Best Dividend Stocks of PSX

The idea of buying and selling in the stock market tends to be a scary thought for most of us.

It’s a scary thought because we don’t know what to look for, how to go about it and how much money we need to invest. 

However, the idea of buying and selling in the stock market is not as scary as it seems. 

This is especially true for beginners who are just learning about investing.

Dividend Stocks of PSX

Dividend stocks have been considered the best investment option for many years. 

They are ideal for beginners because they are relatively safe and predictable. 

They also offer a good return on investment, which is why many investors choose them over other kinds of stocks. 

Here are the 10 best dividend stocks of the Pakistan Stock Exchange:

EFERT

Engro Fertilizers Limited is a Pakistani company that manufactures, purchases, and markets fertilizers, seeds, and pesticides. It was incorporated in 2009 and is headquartered in Karachi. Engro Fertilizers is a subsidiary of Engro Corporation Limited.

The company offers urea, phosphate, nitrogen, phosphorous, and potassium fertilizers. It also provides rice and wheat seeds under the Bharosa brand. In addition, Engro Fertilizers provides logistics services and agri-business solutions.

Key Factors

1. EFERT is less volatile than 75% of PSX stocks over the past 3 months.
2. EFERT earnings (13.1% per year) are forecast to grow faster than the market 
3. EFERT earnings have grown by 9.1% per year over the past 5 years.
4. EFERT’s debt-to-equity ratio has reduced from 77.4% to 73.1% over the past 5 years.
5. EFERT dividend (17.30%) is in the top 25% of dividend payers in the market.
6. EFERT has 17.30% as of the Current Dividend Yield.

For more info about this stock visit sarmaaya.pk

KAPCO

Kot Addu Power Company Limited owns and operates a 1,600 MW multi-fuel-fired power station located in Kot Addu, Punjab, Pakistan. Kot Addu Power Company Limited was incorporated in 1996 and is based in Lahore, Pakistan.

The power plant uses gas, furnace oil, and diesel to generate electricity, which is sold to the Pakistan Water and Power Development Authority. 

Key Factors

1. KAPCO’s weekly volatility (5%) has been stable over the past year.
2. KAPCO earnings have grown by 1.3% per year over the past 5 years.
3. KAPCO’s debt-to-equity ratio has reduced from 142.8% to 54.5% over the past 5 years.
4. KAPCO’s dividend (27.08%) is in the top 25% of dividend payers in the market.
5. KAPCO dividend payments have increased over the past 10 years.
6. KAPCO has 27.08% of the Current Dividend Yield.

For more info about this stock visit sarmaaya.pk

HUBC

Hub Power Co. Ltd. is an independent power producer in Pakistan. It has three segments: Power Generation, Operations and Maintenance, and Investments. 

Hub Power owns and operates an oil-fired power station with a net installed capacity of 1,200 megawatts at the Hub plant located in Mouza Kund, Balochistan, and an oil-fired power station with a net installed capacity of 214 megawatts in Punjab. 

It also operates 84 megawatts of the hydel power plant at the Laraib plant in Azad Jammu and Kashmir.

Key Factors

1. HUBC weekly volatility (7%) has been stable over the past year but is still higher than 75% of PSX stocks.
2. HUBC has a high level of non-cash earnings.
3. HUBC earnings have grown significantly by 27.2% per year over the past 5 years.
4. HUBC’s dividend (22.17%) is in the top 25% of dividend payers in the market.
5. HUBC dividend payments have increased over the past 10 years.
6. HUBC has 22.17% of the Current Dividend Yield.

For more info about this stock visit sarmaaya.pk

EPCL

Engro Polymer & Chemicals Ltd was incorporated in 1997 and is headquartered in Karachi, Pakistan. Engro Polymer and Chemicals Limited is a subsidiary of Engro Corporation Limited.

It manufactures, markets & sells PVC, vinyl chloride monomer, caustic soda liquid & flakes, hydrochloric acid, & sodium hypochlorite in Pakistan. It operates through 3 segments: PVC & Allied Chemicals, Caustic Soda & Allied Chemicals, & Power Supplies. Its PVC products are used to manufacture pipes, artificial leather, shoes, rigid & soft sheets, garden hoses, windows & doors, etc.

The company also exports its products to European, the United States, the Middle East, and Afghanistan markets.

Key Factors

1. EPCL earnings have grown significantly by 39.7% per year over the past 5 years.
2. EPCL’s Return on Equity (51.5%) is considered outstanding.
3. EPCL debt to equity ratio has reduced from 116.5% to 71.1% over the past 5 years.
4. EPCL dividend (28.27%) is in the top 25% of dividend payers in the market.
5. EPCL dividend payments have increased, but the company has only paid a dividend for 5 years.
6. EPCL has 28.27% as of the Current Dividend Yield.

For more info about this stock visit sarmaaya.pk

FABL

Faysal Bank Limited offers banking services including deposit accounts, loans, credit cards, wealth management, and more.

Faysal Bank Limited was incorporated in 1994 and is headquartered in Karachi, Pakistan. Faysal Bank Limited operates as a subsidiary of Ithmaar Bank B.S.C.

 It also provides corporate financing, trade financing, investment banking, and cash management services.

In addition, the company provides Islamic banking services. As of December 31, 2021, the company operated 606 branches, including 2 sub-branches. 

Key Factors

1. FABL weekly volatility (5%) has been stable over the past year.
2. FABL earnings have grown by 15.7% per year over the past 5 years.
3. FABL earnings growth over the past year (24.3%) exceeded the Bank’s industry average.
4.  FABL Assets to Equity ratio (14.7x) is moderate.
5. FABL dividend payments have increased, but the company has only paid a dividend for 7 years
6. FABL has 26.59 % of the Current Dividend Yield.

For more info about this stock visit sarmaaya.pk

Conclusion

Pakistan Stock Exchange (PSX) is a great place to invest your savings. There are a variety of companies listed on the exchange, and many of them offer dividends to shareholders. 

These stocks have strong records of paying dividends, and they are likely to continue doing so in the future. You can do research on your own but I have concluded them on financial health and volatility factors.

I hope you enjoyed reading this article. Be sure to share it with your friends and family so they can benefit from it as well. Thanks for reading!

Sources of information: Sarmaaya.pk, PSX, Simply Wall St

Note: This is not financial advice this article is only for information purposes.