PSX-listed firms distribute over Rs1 trillion in dividends in FY26, up 19% YoY

Profit reported that PSX-listed firms paid a record Rs1,011,727 million in cash dividends during fiscal year 2026. That was 19.18% higher than the Rs848,907 million distributed in FY25, and it was the first time payouts crossed Rs1 trillion. The increase extended a run of five consecutive annual gains that began after the pandemic slump of FY20.

Commercial banks stayed the largest source, distributing Rs406,792 million, up 30.5% from Rs311,617 million, and accounting for over 40% of the year's total. Oil and gas exploration companies ranked second with Rs149,961 million, a 19.3% increase. The fertiliser sector was among the few major groups to decline, with payouts down 6.7% to Rs91,573 million, while food and personal care producers lifted theirs 34.5% to Rs64,361 million. Technology and communication payouts more than quadrupled, reaching Rs23,857 million against Rs4,667 million a year earlier.

According to the analyst quoted in the report, the market's average dividend yield during the past decade was 9.3%, which exceeded every other regional market. Over that span, Treasury bills averaged an 11% yield while savings accounts returned 5.1%. The current dividend yield stands at 7.5%, and the price-to-earnings multiple is seven times. Bank payouts were linked to higher investment-to-deposit ratios, driven by government financing needs amid limited external funding, with relatively low deposit costs also helping.