Before investing, it is important to estimate your profit from dividends
When you are looking to invest in the Pakistan Stock Exchange (PSX), then picking the right stocks becomes very crucial. Beginners usually lose their money on investments because of not knowing about the stocks that are strong and solid.
This post talks about some of the top PSX stocks to follow in Pakistan, along with calculating the expected return of investment through a dividend calculator.
What Makes a Good PSX Stock?
Some features that make a stock a good one include:
- Strong company history
- Growth in profits
- Good dividend payments
- Stability in management
- Less risky than market average
Most Pakistani investors have been found to prefer dividend-paying stocks.
Best PSX Stocks to Follow
Here are some of the most popular stocks on the Pakistani stock exchange
Banking Sector
- United Bank Limited (UBL)
- MCB Bank Limited (MCB)
- Bank of Punjab (BOP)
- Habib Bank Limited (HBL)
- Bank Alfalah Limited (BAFL)
The banking sector is regarded as stable because banks make money from lending, savings, and finance.
Fertilizer Sector
- Fauji Fertilizer Company (FFC)
- Fatima Fertilizer Company (FATIMA)
- Engro Fertilizers Limited (EFERT)
Power / Energy Sector
- Hub Power Company (HUBC)
- Jhang Power Limited (JVDC)
Oil & Gas / Energy Sector
- Oil and Gas Development Company (OGDC)
- Pakistan Oilfields Limited (POL)
Why are Dividend Stocks Popular?
Dividend stocks provide you profit regardless of whether the value of the stock remains stable or not. Hence, people living in Pakistan choose dividend stocks to invest.