Investing in the Stock Market: Where Fundamentals Meet Dividends
High Dividend Yield Stocks: Investing money in the world of the stock market is not a game, but if you choose the right company, then the returns can also be amazing. Today, we will talk about the top 10 companies whose stocks are not only powerful performers but their fundamentals are also rock solid. These are the companies that are making a splash in sectors like metal, mining, energy and infrastructure. By looking at the details given in the table, we will do a deep dive into them, as well as find answers to some important questions, such as why one should invest in them and what their scope is in the future. So let’s get started!
Top 10 High Dividend Yield Stocks
We have selected 10 such companies from the table, which are leaders in their sector, and their stocks also have good performance. Let’s know about them one by one and understand why these stocks are so special.
| S.No. | Name | CMP (Rs.) | CMP / BV | P/E | PEG | G Factor | ROE (%) | ROCE (%) | Mar Cap (Rs. Cr.) | Debt / Eq | Div Yld (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Hindustan Zinc | 453.15 | 14.41 | 18.51 | 2.01 | 6.00 | 72.52 | 60.81 | 1,91,470.33 | 0.82 | 6.40 |
| 2 | Coal India | 399.70 | 2.49 | 6.98 | 0.43 | 7.00 | 38.83 | 48.04 | 2,46,324.25 | 0.09 | 6.38 |
| 3 | Natl. Aluminium | 180.77 | 1.86 | 6.30 | 0.06 | 9.00 | 32.73 | 43.96 | 33,200.79 | 0.01 | 4.43 |
| 4 | Vedanta | 432.40 | 4.10 | 12.12 | -15.95 | 7.00 | 38.78 | 27.00 | 1,69,085.18 | 1.82 | 10.06 |
| 5 | Guj Pipavav Port | 158.25 | 3.61 | 19.17 | 2.99 | 6.00 | 18.96 | 24.88 | 7,650.44 | 0.03 | 4.61 |
| 6 | Rites | 279.30 | 5.08 | 34.88 | -3.90 | 3.00 | 14.66 | 20.81 | 13,423.26 | 0.00 | 4.12 |
| 7 | BPCL | 316.60 | 1.69 | 10.09 | 0.40 | 5.00 | 17.34 | 16.25 | 1,37,357.08 | 0.75 | 6.63 |
| 8 | ONGC | 238.31 | 0.87 | 8.25 | 0.43 | 5.00 | 10.68 | 12.42 | 2,99,800.63 | 0.55 | 5.14 |
| 9 | HPCL | 408.20 | 1.70 | 12.90 | 0.89 | 5.00 | 13.74 | 10.51 | 86,857.72 | 1.38 | 5.14 |
| 10 | IOCL | 143.38 | 1.09 | 16.69 | 0.74 | 4.00 | 6.56 | 7.37 | 2,02,470.32 | 0.82 | 8.37 |
1. Hindustan Zinc: The King of Zinc
Hindustan Zinc (HZL) is the world’s second-largest zinc-lead mining company and India’s number-one integrated zinc producer. It is part of the Vedanta Group, and its mine at Rampura Agucha in Rajasthan is the third-largest open-pit mine in the world. Apart from zinc, lead and silver, it also produces cadmium. Its profit grew 33% to ₹10,353 crore in FY25, and revenue also jumped 18%. A dividend yield of 6.40% and ROCE of 60.81% show how solid the company is financially.
HZL specializes in zinc, lead and silver production, which is used in industries such as galvanization, batteries and alloys. It has 5 mines and several smelters spread across Rajasthan. Recently, it won the bid for critical mineral blocks, which will further strengthen its portfolio.
2. Coal India: Treasure of Coal
Coal India is India’s largest coal producer, which supplies coal to power plants and steel and cement industries. Its market cap is ₹2,46,324 crore, and with a dividend yield of 6.38%, it is an investor favorite. Its net profit in Q4 FY25 was ₹20.7 billion, double that of last year.
Coal India’s focus is on coal production and distribution. It meets a large part of India’s energy demand. Recently, it also acquired critical mineral blocks, which will diversify its portfolio.
3. National Aluminium (NALCO): Power of Aluminum
National Aluminum Company (NALCO) is India’s leading government company, which specializes in aluminum production. It has a market cap of ₹33,200 crore, and revenue grew 47% to ₹52.7 billion in Q4 FY25. The company supplies the electrical, construction and transportation sectors.
NALCO focuses on aluminum production, refining and distribution. They have bauxite mines and refineries in Odisha. The company is also focusing on sustainability, which has improved its ESG score.
4. Vedanta: Multi-metal Giant
Vedanta Limited is a global natural resources company that deals in zinc, lead, silver, copper, iron ore, aluminum and oil gas. It has a market cap of ₹1,69,085 crore and a dividend yield of 10.06%.
Vedanta has operations spread across India, South Africa, Namibia and Australia. It holds a 64.9% stake in Hindustan Zinc and was recently in the news for its demerger plan.
5. Gujarat Pipavav Port: Ports Player
Gujarat Pipavav Port is India’s leading private port operator, specializing in container and bulk cargo handling. It has a market cap of ₹7,650 crore and a dividend yield of 4.61%. The company runs the Pipavav Port in Gujarat, which is important for the shipping and logistics industry. Its focus is on infrastructure development and operational efficiency.
Given India’s growing demand in the logistics sector, this company is good for long-term growth.
6. RITES: Engineer of Infrastructure
RITES is a government company which works in infrastructure and transport consultancy. It has a market cap of ₹13,423 crore and a dividend yield of 4.12%.
RITES provides consultancy and engineering services in railway, highway and metro projects. It is part of India’s infrastructure boom. Given the pace of infrastructure development in India, RITES has good potential.
7. BPCL: Powerhouse of Petroleum
Bharat Petroleum Corporation Limited (BPCL) is India’s leading oil refining and marketing company. It has a market cap of ₹1,37,357 crore and a dividend yield of 6.63%.
BPCL deals in petrol, diesel and gas production as well as retail distribution. It is also moving towards green energy. With the demand of the energy sector and solid financials, BPCL is a good bet for long-term investors.
8. ONGC: King of Oil
Oil and Natural Gas Corporation (ONGC) is India’s largest oil exploration and production company. Its market cap is ₹2,99,800 crore, and its 5.14% dividend yield makes it a stable investment. ONGC is a leader in crude oil and natural gas production. It specializes in offshore and onshore drilling.
9. HPCL: The Rockstar of Refining
Hindustan Petroleum Corporation Limited (HPCL) is BPCL’s competitor in oil refining and marketing. Its market cap is ₹86,857 crore. HPCL deals in petrol, diesel and LPG production, along with retail and industrial supply.
10. IOCL: The All-Rounder of Oil
Indian Oil Corporation (IOCL) is India’s largest oil marketing company. The company has a market cap of ₹2,02,470 crore. Its 8.37% dividend yield makes it a favorite of dividend lovers. IOCL works in refining, distribution and petrochemicals. It meets a large part of India’s fuel demand.
Important Questions and Answers Related to These Stocks
1. Why invest in these stocks?
These 10 high dividend yield stocks are leaders in their respective sectors. Whether it is metals (Hindustan Zinc, Vedanta), coal (Coal India), aluminum (NALCO), or energy (BPCL, ONGC, HPCL, IOCL), their fundamentals are strong. High dividend yield (4.12% to 10.06%) and good ROE/ROCE make them stable and growth-oriented. India’s infrastructure and energy demand is increasing, which will further increase the scope of these sectors.
2. Are these stocks right for the long term?
Yes, absolutely! Most of these companies have government backing or solid private management. Stocks like Hindustan Zinc and Coal India offer high dividends and stable growth. On the other hand, stocks like Vedanta balance the risk due to diversified portfolios. Considering India’s economic growth in the long term, these stocks can give potential returns.
3. What is the risk in these?
Every stock has risk. Metals and commodity stocks (Hindustan Zinc, Vedanta, NALCO) are affected by global price fluctuations. Oil companies (BPCL, ONGC, HPCL, IOCL) depend on crude prices and government policy. But their low P/E and high dividend cover the risk to some extent. Vedanta (1.82) and HPCL (1.38) have slightly high debt-to-equity ratios so that they may carry a little more risk.
4. Are these the best stocks for dividend investors?
Yes, especially stocks like Vedanta (10.06%), IOCL (8.37%), and CPCL (8.25%) offer high dividend yields. If you want regular income, these stocks can fit into your portfolio.
5. What is their future scope?
Infrastructure, manufacturing, and energy demand are growing rapidly in India. Zinc demand may double in the next 5-10 years. PSU stocks like Coal India and NALCO get government policy support. In the ports and infrastructure sector, Gujarat Pipavav and RITES are also on the growth path.
Conclusion
These 10 high dividend yield stocks are part of India’s growth story. Whether it’s Hindustan Zinc’s zinc production, Coal India’s coal mine strength, or ONGC and IOCL’s energy dominance, each company is unique in its way. Their high dividend yield, solid ROE and market leadership make them a favorite among investors. But remember, there is always risk in the stock market. Research and patience are essential for smart investing.
So, which stock is your favorite? Let us know in the comments, and if you have any market-related questions, ask that too!
Disclaimer: Marketread provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions. Detailed explanations of dividend calculation, yield, tax rules, and reinvestment, backed by credible sources (upstox, MoneyControl).