Higher Dividend Yielding Stocks

The quickly changing market landscape in a country like Pakistan makes it more difficult for investors to figure out what strategies will help grow their portfolio. Just when you think you’ve adjusted for market factors, like low interest rates, retirees and other investors turn to dividend paying stocks to provide them with a reliable source of income. In fact, investing in companies paying high dividend yields is often viewed as the "Sensible" or "Rainy Day" approach to creating an investment portfolio.

Stocks of the PSX:

Various companies offering shareholders a higher dividend yield, let's take a closer look at the yields of some stocks at Pakistan Stock Market - PSX.  We used AZEETRADE.COM a division of AZEE Securities, Stock Screener to pull a list of companies that are paying higher dividends in excess of 8.0% CY 2017.

Analyzing the above information reveals that top ten of the stocks in the KSE-100 Index were paying dividends of 8.0% to 15% or higher from varied sectors. 

Stocks Paying High Dividends:

Common stocks paying high dividends, we might conclude that high dividends were the result of limited internal investment opportunities.  Let's take a closer look, it helps us understand why companies offer dividends to their stockholders

Stocks that pay cash dividends to stockholders. Dividend payments are distributed to shareholders when a corporation generates profits or has a cash surplus. Some companies make regularly scheduled dividend payments. Others provide stockholders with the dividend bonus on a more sporadic basis.

There are a number of reasons to consider dividend paying stocks. Stocks that pay dividends can help generate cash flow, which can be used for living expenses or reinvested to increase the overall gains in your portfolio.

Buying dividend-paying stocks, keep in mind that the frequency or amounts of past dividend payments are not always indicators or future dividends. Companies can decide to greatly reduce the amount or frequency of dividend payments to shareholders.