Large-cap stocks are shares of big, well-known companies that are usually leaders in their industries. These companies are often stable and reliable compared to the other caps, making them popular choices for investors. Some of these large companies also pay dividends, regular payments made to shareholders from the company’s profits.
When a large-cap stock has a dividend yield of more than 5%, it means the investor receives a fairly generous income from the company in the form of dividend payments. In simple terms, large-cap stocks with high dividend yields can be a good option for investors who want steady income, but it’s smart to look closely at the company before investing.
Here is the list of stocks to keep on your radar
Vedanta Ltd
Vedanta Ltd is a diversified natural resources company based in India, operating across sectors such as zinc, lead, silver, oil & gas, iron ore, copper, and aluminium. It is part of the Vedanta Resources Limited group, headquartered in London. Vedanta is one of the world’s largest producers of zinc and is a significant player in the Indian energy and metals sectors, and the company also has a presence in power generation and ferro alloys.
The company maintains a dividend yield of 9.10%, reflecting its strong financial health, and it has a dividend payout ratio of 113%, indicating a generous distribution to shareholders. Additionally, the company delivers a robust Return on Equity (ROE) of 38.5% and a solid Return on Capital Employed (ROCE) of 25.3%, demonstrating efficient capital utilization and strong profitability.
Coal India Ltd
Coal India Limited (CIL) is a state-owned enterprise under the Ministry of Coal, Government of India. It is the largest coal-producing company in the world, contributing around 80% of India’s domestic coal production. CIL operates through its subsidiaries across different regions of India and plays a crucial role in meeting the country’s energy needs, especially for thermal power generation.
The company maintains a dividend yield of 6.86%, reflecting its strong financial health, and it has a dividend payout ratio of 46.2%, indicating a generous distribution to shareholders. Additionally, the company delivers a robust Return on Equity (ROE) of 38.9% and a solid Return on Capital Employed (ROCE) of 48.0%, demonstrating efficient capital utilization and strong profitability.
Hindustan Zinc Ltd
Hindustan Zinc Ltd (HZL) is India’s largest and the world’s second-largest zinc producer, majority-owned by Vedanta Ltd. The company is also a leading producer of lead and silver in India. Headquartered in Udaipur, Rajasthan, HZL operates some of the country’s richest zinc-lead mines and smelting operations. It plays a key role in supplying essential metals for infrastructure and industrial applications.
The company maintains a dividend yield of 5.70%, reflecting its strong financial health, and it has a dividend payout ratio of 119%, indicating a generous distribution to shareholders. Additionally, the company delivers a robust Return on Equity (ROE) of 72.4% and a solid Return on Capital Employed (ROCE) of 60.7%, demonstrating efficient capital utilization and strong profitability.
Oil and Natural Gas Corporation Ltd (ONGC)
ONGC is India’s largest oil and gas exploration and production company, owned by the Government of India. It plays a critical role in India’s energy security by producing a majority of the country’s crude oil and natural gas. The company explores and operates both offshore and onshore oilfields across India and internationally. ONGC also has subsidiaries and joint ventures in refining, petrochemicals, and power.
The company maintains a dividend yield of 5.03%, reflecting its strong financial health, and it has a dividend payout ratio of 42.5%, indicating a generous distribution to shareholders. Additionally, the company delivers a decent Return on Equity (ROE) of 10.6% and a solid Return on Capital Employed (ROCE) of 12.0%, demonstrating efficient capital utilization and decent profitability.
REC Ltd
REC Ltd (formerly Rural Electrification Corporation Ltd) is a public sector enterprise under the Ministry of Power, Government of India. It provides financial assistance to the power sector, focusing on generation, transmission, and distribution projects. REC plays a pivotal role in supporting rural electrification and infrastructure development across India. It funds state electricity boards, power utilities, and independent power producers.
The company maintains a dividend yield of 4.89%, reflecting its strong financial health, and it has a dividend payout ratio of 29.8%, indicating a generous distribution to shareholders. Additionally, the company delivers a robust Return on Equity (ROE) of 21.5% and a decent Return on Capital Employed (ROCE) of 9.96%, demonstrating efficient capital utilization and strong profitability.
Written by Sridhar J
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