High dividend-paying stocks can emerge as a good bet amid volatile markets. This is particularly true in times of high-interest rates and weak global trends. Dividends are part of a company’s profits that are distributed to shareholders. Generally, companies that pay high dividends are financially healthy.
Here are two high dividend yield stocks to buy for an upside of up to 37%:
Coal India
Coal India is a Maharatna CPSE mainly engaged in the mining and production of coal and it also operates coal washeries. Its major consumers are from the power and steel sectors.
Motilal Oswal has a buy call on the shares of Coal India with a target price of ₹ 275.00 apiece. This indicates an upside of 24.35% as compared to its current share price of ₹ 221.15 apiece.
Coal India has a market capitalization of ₹ 1,36,319 crores and is a large-cap company. It has a high return on equity of 43.58% and an ideal debt-to-equity ratio of 0.07. Further, it has a high dividend yield of 10.56%. It paid two interim dividends of ₹ 15.00 and ₹ 5.25 in FY 2022-23.
ICICI Securities
ICICI Securities is engaged in the business of institutional and retail broking, distribution of financial products, merchant banking and advisory services.
HDFC Securities has an ‘add’ call on the shares of ICICI Securities with a target price of ₹ 625.00 apiece. This translates into an upside of 36.43% as compared to its current share price of ₹ 458.10 apiece.
ICICI Securities has a market capitalization of ₹ 14,787 crores and is a small-cap company. It has a very high return on equity of 65.02% and a dividend yield of 5.14%. It paid an interim dividend of ₹ 11.25 per share and a final dividend of ₹ 12.75 per share in FY 2021-22, taking the total amount paid to ₹ 24 per share. Moreover, it has paid an interim dividend of ₹ 9.75 per share so far in FY 2022-23.
Written by Simran Bafna
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