Dividend bonanza: Top large Cap stocks with dividend yield above 5%

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its current market price of a stock. It is expressed as a percentage and is often used by investors to assess the income-generating potential of that company/stock.

Dividend Yield (%) = Annual Dividends Per Share ➗ Current Market Price Per Share ×100

Stocks with high dividends have high dividend yields. Generally, PSU stocks pay hefty dividends and their market prices are undervalued, therefore they have a high dividend yield.

Below are 4 large-cap stocks with dividend yield above 5%

1. Coal India Ltd - Coal India is a state-owned coal mining company established in 1975. As the largest coal producer globally, it plays a vital role in the power and steel industries

Coal India’s dividend yield stands at 5.1% at the current price of ₹503. In the last 12 months, it has declared 3 dividends two interim and one final amounting to ₹25.50 per share.

2. Bharat Petroleum Corporation Ltd (BPCL)- BPCL is a PSU company also part of the Fortune 500 engaged in the refining of crude oil and marketing of petroleum products.

BPCL’s dividend yield stands at 6.21% at a current price of ₹338. In the last 12 months, it has declared 1 interim dividend of ₹21 per share.

3. Indian Oil Corporation Ltd (IOCL) - It is India's flagship Maharatna national oil company. Its business includes the entire hydrocarbon value chain - from refining, pipeline transportation and marketing, to exploration and production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources and globalization of downstream operations.

IOCL’s dividend yield stands at 7.64% at the current price of ₹170. In the last 12 months, it has declared 2 dividends one interim and one final each amounting to ₹13 per share.

4. Vedanta Ltd - Vedanta Limited is a globally diversified natural resources company, with interests in zinc-lead-silver, Iron ore, Steel, Copper, Aluminium, Power, Oil and Gas, supplying essential resources for global growth.

Vedanta’s dividend yield stands at 6.32% at the current price of ₹411.30. In the last 12 months, it has declared 3 interim dividends ₹26 per share.

Companies with market cap above ₹20,000 crore ( Large Cap) and a dividend yield above 5%

Conclusion

High dividend yields indicate income potential from investments, often seen in undervalued stocks. Examples include Coal India, Bharat Petroleum, Indian Oil Corporation (IOCL), and Vedanta, with IOCL having the highest yield at 7.64%. However, a significant point to note is that these stocks have rallied over 75% in the last 12 months.