Investors seeking a powerful combination of immediate income and substantial growth can unlock extraordinary value through high dividend-yield stocks. This compelling investment strategy offers a dual advantage: steady cash flow and promising capital appreciation, positioning portfolios to outperform traditional market approaches while mitigating risk.
Here is a list of stocks offering high dividend yields along with growth potential exceeding 30%:
1. NMDC (National Mineral Development Corporation)
Founded in 1958 and headquartered in Hyderabad, National Mineral Development Corporation (NMDC) is a leading state-owned mineral producer under the Ministry of Steel. It is India’s largest iron ore producer, with mines in Chhattisgarh and Karnataka generating over 30 million tonnes per annum.
Beyond iron ore, NMDC is diversifying its portfolio to include minerals such as diamonds and exploring new sectors for growth. Known for its robust infrastructure and sustainable practices, NMDC plays a vital role in India’s steel industry. The company continues to expand and modernise its operations, ensuring its relevance in the global mineral market.
Motilal Oswal reiterates a “BUY” rating on NMDC with a target price of Rs. 290, an upside of 23%. citing robust growth prospects from rising steel demand, capacity expansion, and capex projects to enhance production to 100 MT by FY30E. Currently, the share trades at Rs. 235.69.
2. Coal India
Coal India Limited (CIL), headquartered in Kolkata and incorporated in 1975, is the world’s largest coal producer. A Maharatna Public Sector Undertaking under the Ministry of Coal, CIL contributes significantly to India’s energy needs. With over 350 mines managed by eight subsidiaries, CIL produces around 600 million tonnes of coal annually.
To align with global sustainability goals, it is diversifying into renewable energy and investing in wind and solar projects. CIL remains crucial to India’s energy infrastructure, ensuring the supply of affordable and reliable power while working toward a cleaner energy future.
Sharekhan maintains a “BUY” rating on Coal India with a revised target price of Rs. 560, a 32.6% upside. Strong volume growth outlook, potential FSA price hikes, and high dividend yield, despite a soft quarter with reduced realisations and volumes. Currently, the share trades at Rs. 422.10.
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3. Hero MotoCorp
Hero MotoCorp Limited, the world’s largest manufacturer of two-wheelers, has its headquarters in New Delhi. Founded in 1984 as Hero Honda Motors Ltd., the company became an independent entity in 2010 after Honda’s exit. Hero MotoCorp offers an extensive range of motorcycles and scooters tailored to various consumer segments.
Its commitment to innovation is evident through substantial investments in research and development, focusing on product advancement and sustainable technologies. The company remains a pioneer in the Indian two-wheeler market and continues to expand its global footprint.
Axis Securities maintains a “BUY” rating on Hero Motocorp with a target price of Rs. 5,845, a 24.5% upside. The rationale is strong rural recovery, volume growth driven by the festive season and new product launches, alongside improved EBITDA margins and an expanding EV portfolio. Currently, the share trades at Rs. 4,695.80.
4. Tata Steel
Tata Steel Limited, founded in 1907 and headquartered in Mumbai, is a flagship company of the Tata Group and a global leader in steel production. The company operates integrated steel plants in India and abroad, with an annual production capacity exceeding 30 million tonnes.
Tata Steel is renowned for its sustainable practices, focusing on reducing carbon emissions and adopting innovative technologies to enhance efficiency. Its diverse portfolio caters to sectors like automotive, construction, and engineering, making it a cornerstone of India’s industrial growth.
Axis Securities has upgraded Tata Steel to a “BUY” with a target price of ₹175/share, which is an upside of 19.4%. citing strong Indian operations offset by challenges in Europe. Revenue and EBITDA beat estimates for Q2FY25, but PAT missed. While decarbonisation of Capex in Europe could slow India’s capacity expansion, the KPO-II ramp-up is expected to boost profitability. The UK aims for EBITDA and cash flow neutrality by Q1 FY26. Despite cautious sector outlook, FY26 will be Capex-light, aiding de-leveraging efforts. Currently, the stock trades at Rs. 146.53.
Written By Fazal Ul Vahab C H
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