Synopsis: A group of high dividend yield stocks with positive free cash flow stands out for balancing shareholder payouts with healthy cash generation, highlighting companies that combine income potential with financial strength.
Dividend yield is one of the key factors investors consider when selecting stocks for regular income, as it reflects the return from dividends relative to the share price. However, a high dividend yield alone is not enough. Positive free cash flow is equally important because it reflects a company’s ability to generate cash after meeting capital expenditure needs. Companies with healthy free cash flow are generally in a better position to sustain dividend payments while continuing to invest in their business and support future growth.
Powergrid Infrastructure Investment Trust
Powergrid Infrastructure Investment Trust (PGInvIT) is an infrastructure investment trust sponsored by Power Grid Corporation of India Ltd. It owns and operates interstate power transmission assets that generate stable, long-term revenue through regulated tariffs. The trust aims to provide regular cash distributions to unitholders while supporting India’s expanding electricity transmission network.
With the market capitalization of Rs. 8,842 Crores, the shares of Powergrid Infrastructure Investment Trust were trading at around Rs. 97.2 per share which is trading at its 52 week high of Rs. 99.7 per share. The company has dividend yield of 12.4% and free cash flow of Rs. 1,162 Crores.
Jagran Prakashan Ltd
Jagran Prakashan Ltd is one of India’s leading media and communications companies, primarily engaged in newspaper publishing, digital media, radio broadcasting, outdoor advertising, and event management. Its flagship newspaper, Dainik Jagran, is among the country’s most widely read Hindi dailies, with a strong presence across multiple Indian states.
With the market capitalization of Rs. 1379 Crores, the shares of Jagran Prakashan Ltd were trading at around Rs. 63.4 per share which is 20 percent discount from its 52 week high of Rs. 79.7 per share. The company has dividend yield of 11.1% and free cash flow of Rs. 233 Crores.
Alldigi Tech Ltd
Alldigi Tech Ltd is a technology-driven business process management and digital transformation company that provides customer experience, finance and accounting, human resources, and technology services. The company serves clients across banking, financial services, insurance, healthcare, retail, and other industries through its delivery centers in India and overseas.
With the market capitalization of Rs. 1238 Crores, the shares of Alldigi Tech Ltd were trading at around Rs. 813 per share which is 25 percent discount from its 52 week high of Rs. 1090 per share. The company has dividend yield of 7.31% and free cash flow of Rs. 116 Crores.
Altius Telecom Infrastructure Trust
Altius Telecom Infrastructure Trust is an infrastructure investment trust (InvIT) focused on owning and managing telecom tower assets in India. Sponsored by Bharti Airtel, it generates stable rental income by leasing telecom infrastructure to mobile network operators. The trust aims to provide predictable cash flows, long-term value creation, and regular distributions to unitholders.
With the market capitalization of Rs.51,801 Crores, the shares of Altius Telecom Infrastructure Trust were trading at around Rs. 170 per share which is trading near its 52 week high of Rs. 171 per share. The company has dividend yield of 9.31% and free cash flow of Rs. 8864 Crores.
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