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.
Power Grid
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. With peak power demand expected to rise to 270 GW in the summer of 2025 and further to 363 GW by FY30, Coal India is likely to benefit from long-term energy demand.
HPCL
HPCL could gain from recent movements in oil prices and domestic fuel pricing. “Oil price decline due to OPEC+ output hike and US tariffs is likely to improve HPCL’s gross marketing margins,” noted the brokerage firm in its report.
The government’s Rs 50 per cylinder LPG price hike is expected to partially offset the Rs 76,000 crore in LPG under recoveries. Upcoming triggers include the commissioning of its bottom upgrade unit in Q4FY25 and the expected launch of the Rajasthan refinery in CY25.
While the exact dividend yield was not explicitly stated, the brokerage noted, “With expected FY26 RoE of 17%, current valuations look attractive.”
Castrol India
According to the brokerage, Castrol stands to benefit from falling crude prices, which have dropped to a four-year low of $60 per barrel. Lower input costs help improve margins for lubricant companies.
“For its lubricant business, it is targeting above industry average growth rate of 4–5%,” the report highlights.
In addition to it, the brokerage estimates an overall dividend yield of 6.5% so far starting last fiscal.