Vedanta, Hindustan Zinc and Coal India among five stocks that delivered dividend yields of over 5%

Indian benchmark indices have seen a steep correction in recent months, falling more than 14% from record highs and showing no signs of recovery. The pain is more severe in small-cap and mid-cap indices, which have fallen more than 20%. In times like these, investors look for stable income opportunities in the markets.

Companies that consistently pay dividends underscore their strong fundamentals and robust corporate governance. Moreover, this also suggests that these companies are generating steady profits and cash from the business. Investors look for companies that pay dividends consistently and have high dividend yields.

The dividend yield, calculated by dividing the total dividend paid by the current market price, is a key metric for evaluating stocks. For instance, a stock trading at ₹100 per share with a ₹7 dividend has a 7% yield. Here are five companies that currently have a dividend yield exceeding 5%.

Oil & Natural Gas Corporation

The government-owned company has paid dividends 38 times since 2011 and paid total dividends worth ₹13.5 per share in FY25, translating to a dividend yield of 5.6%. ONGC shares have fallen 33% from the record-high levels of ₹344 achieved in August 2024. The stock closed at ₹233 apiece, 0.51% lower on Tuesday, February 25.

Coal India

The company has paid dividends 29 times since 2011 and paid total dividends worth ₹26 per share in FY25, translating to a dividend yield of 7.12% for FY25. The company reported a muted set of numbers for Q3FY25 as total revenue declined 1.3% YoY and net profit dipped 15% YoY. Shares of Coal India closed 0.77% lower at ₹361.15 apiece on Tuesday.

Hindustan Zinc

The company currently has a dividend yield of 7.1%. It paid dividends of ₹29 per share to its shareholders in FY25. The company traded 33.3% below its record high level of ₹542 achieved in August 2024. Hindustan Zinc’s share price closed 2% lower at ₹407.2 apiece on the NSE on Tuesday.

Vedanta Ltd

At the current market price of ₹408 apiece, the dividend yield stands at 10.6% as the company paid ₹43.5 in dividends to its shareholders in FY25. The stock has rallied 73% in 2024 and corrected by 20% from the record high levels. On Tuesday, the share price of Vedanta closed nearly 3% lower at ₹409 apiece on the NSE.

Indian Oil Corporation

The shares have corrected nearly 40% from the record high levels achieved in February 2024 and closed 1.33% lower at ₹118.6 apiece on the NSE on Tuesday.

Apart from the above key five names, companies like Shriram Finance, BPCL, REC, Oil India, NMDC, National Aluminum, Indraprastha Gas and Aster DM Healthcare have dividend yields above 5% per annum.