High-Dividend Stocks: Vedanta To MSTC — 15 Companies Offer More Than 5% Yields

In the world of investing, where market volatility can be a constant source of uncertainty, high-dividend-yield stocks stand out as a beacon of stability and tangible returns. Their primary allure lies in the promise of a regular income stream, rewarding shareholders with a consistent share of the company's profits, regardless of day-to-day stock price fluctuations.

This steady cash flow not only provides a valuable source of passive income but also offers a psychological cushion during turbulent times.

A history of strong and sustainable dividends is often interpreted as a sign of a mature, financially healthy company with a stable business model and management's confidence in its long-term prospects, making these equities a cornerstone for investors focused on both income generation and wealth preservation.

At current price levels, 15 companies — across large, mid, and small caps offer a dividend yields of more than 5%.

Leading the charge is mining and metals giant Vedanta, which tops the list with a staggering dividend yield of 9.5%. This figure is bolstered by the company's strong cash flow generation, which supported a total payout of Rs 13,474 crore in FY25, and a robust performance in the fourth quarter.

The company has also shown a track record of high dividend per share payouts over the last five years, offering an attractive yield even among those companies which consistently reward shareholders in the form of dividends.

A dividend yield is a straightforward financial ratio that tells investors how much a company pays in dividends each year relative to its stock price.

1. Vedanta: 9.7%

2. MSTC Ltd.: 8.3%

3. D.B. Corp: 8%

4. Chennai Petroleum Corporation: 8%

5. Allcargo Logistics: 7%

While the yields are high across the board, their sustainability varies significantly from company to company.

Following Vedanta is public sector enterprise MSTC, with an impressive 8.3% yield. Despite declaring six dividends since 2023, and an average payout ratio of 38% over the last five years, the company has shown a growing, but volatile dividend policy.

In stark contrast, media house D.B. Corp presents a more stable picture. Its 8% yield is supported by strong cash flows and a conservative dividend policy. The company's ability to maintain its payout despite a weak top and bottom line points towards a sustainable model that should reassure investors.

Chennai Petroleum, with a dividend yield of 8%, paints a more complex picture. While the current yield is high, it has notably picked up in the last two financial years. An inherent cyclicality remains its business, which when combined with declining profits and margin volatility remain key risks for investors to monitor.

While Allcargo Logistics offers a 7% yield, and has declared a dividend in the last four out of five years, it did not declare a dividend in FY24 due to corporate restructuring.

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Here is the list of the 15 highest stocks dividend-yielding stocks...