To all my fellow Pakistanis dealing with rising prices, it’s a good idea for us to start thinking about ways to make money, in parallel to your primary source of income, without working too hard and ways to make sure that your money doesn’t lose its value over time.

One such avenue that not only preserves your savings but can also generate extra income during these tough times is the Pakistan Stock Exchange (PSX).

For many Pakistanis, the stock market remains an underutilized income source. While I can’t promise it will turn you into an overnight billionaire, it can certainly boost your income if approached wisely.

Let’s dive into this concept. Allow me to randomly select two stocks that have shown decent performance in the past year. Please note that these stocks are not the best in the market (there are stocks that gave more 200% return over the last year but lets keep things simple and realistic), and the dates chosen are covering a one-year span from today.

Example 1: The Hub Power Company Ltd (HUBC)

HUBC is a publicly traded company on the Pakistan Stock Exchange. If you had invested in HUBC exactly one year ago at PKR 65 per share, your dividend return would have been 46%, and the value of your shares would have increased by 27%. Importantly, this investment would continue to provide returns in the future. Here are the details:

  • Company: The Hub Power Company Ltd
  • Symbol: HUBC
  • Price on 20th September 2022: PKR 65
  • Price on 20th September 2023: PKR 83
  • Dividend: PKR 30 per share
  • Dividend Return: 46%
  • Share Value Increase: +27%
  • Total Return: 73%

So, let’s imagine you had PKR 1 million in September 2022. With this amount, buying property or a car might not be an option. So, you decide to invest in HUBC instead. Within just one year, you would have received PKR 460,000 in dividends directly deposited into your bank account, hassle-free. Plus, your initial investment would have grown to PKR 1.27 million. That’s undeniably a fantastic investment by any measure.

Example 2: United Bank Limited (UBL)

UBL is another publicly traded company on the Pakistan Stock Exchange. Its share price was around PKR 113 exactly one year ago. If you had purchased the shares then, you would have enjoyed a dividend return of 30.9% and seen the share value increase by 29%. Here are the details:

  • Company: United Bank Ltd
  • Symbol: UBL
  • Price on 20th September 2022: PKR 113
  • Price on 20th September 2023: PKR 146
  • Dividend: PKR 35 per share
  • Dividend Return: 30%
  • Share Value Increase: +29%
  • Total Return: 59%

It’s essential to know that not every company does well. Some actually do really badly. So, the most important thing is picking the right stocks at the right times.

Selecting stocks to invest in the stock market is a skill, and in future posts, I’ll share the strategies that have proven effective for me.

Stay tuned as I provide you with strategies and essential knowledge to make informed decisions.

I would to emphesise that the strategies that i will share with you is for long term investors who want steady return on their investments. This is not for people who want to be overnight billionare people who want to gamble in the stock market.