Pakistan equity dividends make investors richer by PKR 272B

The companies listed on Pakistan Stock Exchange’s KSE-100 index announced cash dividends worth PKR 272 billion during the fourth quarter of fiscal year 2024-25 (April-June), up 7% from the same period a year ago.

This translates into a 61% dividend payout during the fourth quarter, compared to 69% in the same period last year, according to a report by Topline Securities, released on Saturday.

During the fourth quarter of 2023-24, companies listed on the KSE-100 index paid nearly PKR 254 billion to their shareholders.

On a quarter-on-quarter basis, dividends increased by 142%, in line with the year-end pattern, where companies typically declare payouts. This brings the total of last fiscal year's dividends to PKR 775 billion, a 13% increase with a payout ratio of 45%.

The banking sector remained the biggest contributor, with a dividend announcement of PKR 87 billion during the fourth quarter, followed by exploration and production (E&P) companies (PKR 69 billion) and fertilizers (PKR 30 billion).

In the banking sector, United Bank Limited (UBL), Standard Chartered Bank (SCBPL), and Meezan Bank (MEBL) were the top contributors with payouts of PKR 20 billion, PKR 13.5 billion, and PKR 12.5 billion, respectively.

Dividend payouts in the E&P sector were led by Mari Energies (MARI) with PKR 26 billion, Oil & Gas Development Company (OGDC) with PKR 21.5 billion, Pakistan Oil Fields (POL) with PKR 14 billion, and Pakistan Petroleum (PPL) with PKR 6.8 billion.

In the fertilizer sector, Fauji Fertilizer (FFC) announced the largest payout of PKR 17 billion, while Fatima Fertilizer (FATIMA) declared PKR 7 billion, and Engro Fertilizers (EFERT) announced PKR 7.4 billion.

The automobile sector was led by Indus Motor (INDU) with PKR 3.9 billion in dividends, followed by Millat Tractors (MTL) PKR 2.9 billion, and Sazgar (SAZEW) PKR 1.2 billion.

In the food & personal care sector, Nestle Pakistan (NESTLE) emerged as the largest contributor with PKR 10.1 billion in dividends. Unilever (UPFL) and National Foods (NATF) declared dividends of PKR 2.8 billion and PKR 1.1 billion, respectively.

Bestway Cement (BWCL) announced dividends of PKR 5.9 billion, followed by Fauji Cement (FCCL) PKR 3.1 billion and Lucky Cement (LUCK) PKR 1.2 billion. In the power sector, Hub Power Company (HUBCO) declared the highest dividend of PKR 12.9 billion during the quarter.

In the pharmaceutical sector, where all companies announced ‘nil payout’ in the June quarter, the sector declared PKR 3.3 billion in dividends, with GlaxoSmithKline (GLAXO), Haleon Pakistan (HALEON), and AGP Ltd. (AGP) paying PKR 1.5 billion, PKR 1.2 billion, and PKR 560 million, respectively.