HUBCO scrip offers a strong yield play with 12 month forward dividend yield of 17.5%. Dividend yield of 20% in FY 2010 and USD IRR of 26% over the remaining life of the project makes this share a very lucrative investment. This scrip has a minimal business risk as the Government of Pakistan has guaranteed a price which is dollar pegged. Pak Rupee currency depreciation only helps the profitability and Dividend payout of the company. At current market price of Rs 21, HUBCO share appears to be a good buy with potential, as per many analysts, of touching Rs 37 per share.
Karachi Stock Market's growth and dividend oriented shares include OGDC, NBP and HUBCO.
RECOMMENDATION: STRONG BUY
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