In times of market volatility, where global trade uncertainties often make an investor check the pockets, the brokerage firm Motilal Oswal has identified five high dividend-paying companies that not only offer consistent payouts but also boast fundamentals and cash-rich balance sheets.
According to Motilal Oswal’s latest report, “With markets being volatile due to global trade uncertainty, one can look at high dividend yield stocks which can provide margin of safety to the portfolio.”
All five companies in the list have been given equal weightage, with the brokerage projecting a potential upside of 10% to 15% over the next six months.
Here is a closer look at the top picks and why they made the cut- ITC
According to the brokerage report, ITC’s core cigarette business has maintained steady performance amid stable taxation, helping it generate consistent cash flows. The company is also expanding in the paperboard segment through the acquisition of Aditya Birla Real Estate’s ‘Century Pulp and Paper’ for Rs 3,500 crore.
“ITC has announced acquisition of Aditya Birla Real Estate’s paper business, ‘Century Pulp and Paper’ (CPP), as going concern on a slump sale basis for Rs 35Bn,” the brokerage firm added in its report.
Furthermore, the brokerage firm estimates a dividend yield of 3.5% for ITC so far.
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As per the brokerage report, Power Grid is well placed to benefit from long term government investments in the power transmission sector. Moreover, it added that the stock offered a dividend yield of 3% in FY25, providing a potential income stream alongside capital appreciation.
“The NEP represents a significant commitment to capacity expansion and the advancement of clean energy technologies,” it noted.
Coal India
According to the brokerage, Coal India remains a dominant player in the coal supply chain, producing over 75% of the country’s coal and catering primarily to the power sector. The stock is currently trading below its 10-year historical average, making its tentaive dividend yield of 7.1% for FY25 one of the most attractive in this basket.
“Coal India produces over 75% of India’s coal, with 80% supplied to the power sector,” the brokerage firm mentioned in its report.
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