The last few months have been a rollercoaster for investors. Markets swung wildly, headlines flipped from optimism to panic, and anyone relying purely on capital gains found it hard to keep calm.
Here’s the thing—when volatility is the norm, hoping your portfolio will keep climbing isn’t a plan. It’s a gamble.
That’s why seasoned investors are shifting focus to something far more stable. Not the kind that comes and goes with market moods, but consistent, dependable income.
A time-tested way to do that is dividend stocks with big and regular pay outs.
In this editorial, we’re looking at three ultra-high-yield dividend stocks delivering strong, steady cash flow.
These aren’t flavour-of-the-month trades. They’re classic cash cows. If permanent income is what you’re after, these deserve a close look.
Read on…
#1 Coal India
First on the list is Coal India, a ‘Maharatna’ Central Public Sector Enterprise (CPSE) primarily engaged in the coal mining.
It has a dominant position in domestic coal mining, contributing more than 70% of the total domestic coal production in FY25. It holds 48% of India’s proven coal reserves.
The company has delivered an 8% top-line compounded annual growth rate (CAGR) over a 5-year period and a net profit CAGR of 16%.
The last 5-year return on equity (ROE) has been 47%.
The company is a steady dividend payer and has a 6.89% dividend yield.
Coal India Stock Price – 1 Year
Looking ahead, the company’s performance is expected to remain healthy over the medium term.
It plans to fund its large capital expenditure requirements largely through internal accruals, even after large dividend payouts, indicating a continued strong financial position capable of generating sufficient accruals.
#2 Indian Oil Corporation
Coming second on the list is Indian Oil Corporation (IOCL), India’s largest oil refining and marketing company.
IOCL operates an integrated business model that captures refining, marketing, pipelines, and petrochemicals.
The company has 31% of the domestic refining sector, with a consolidated refining capacity of 80.8 million metric tons per annum (MMTPA) spread across its 11 refineries.
IOCL controls more than 50% of the total pipeline network in the country, exceeding 20,000 km, facilitating access to markets and reducing product placement costs.
In its marketing segment, IOCL has a network with over 40,000 retail outlets, nearly 13,000 LPG distributorships, and almost 6,000 aviation fuel stations.
Indian Oil Corporation Stock Price – 1 Year
The company has delivered a top-line growth of 9% CAGR over a 5-year period and a net profit CAGR of 23%.
The last 5-year return on equity (ROE) has been 13%.
The company is a steady dividend payer and has a 1.95% dividend yield.
This low dividend yield should improve going forward as the FY25 profits were down, limiting the dividend payout.
In addition to this, the company also did not receive its LPG subsidies from the government for the year.
So, as and when the company receives unrecovered LPG subsidies, it can immediately lift earnings and thus dividend capacity.
Major expansions are scheduled to commission from late FY26 to FY27 (Panipat, Gujarat, Barauni). As new projects begin to generate cash flow and large capex tapers, free cash for dividends should rise.
#3 Castrol India
At number three comes Castrol India, engaged in the manufacturing and marketing of automotive and industrial lubricants and related services.
The company holds a leading position in the Indian lubricants market and is recognised the world’s third-largest, accounting for 10% of global demand.
Its core business is broadly categorised into “Wheels” and “Wings”.
The “Wheels” segment focuses on passenger cars, motorcycles, commercial vehicles, and includes offerings like Castrol EDGE, Castrol MAGNATEC, Castrol Activ, Castrol CRB TURBOMAX+, and the Castrol CRB ESSENTIAL range for a wider customer base.
Additionally, Castrol India has expanded its portfolio into auto care products, such as chain cleaners and anti-rust sprays.
Beyond mobility, the “Wings” segment focuses across diverse industries like marine, steel, mining, aerospace, cement, wind, railways, and machinery manufacturing, delivering tailored solutions and specialised industrial lubricants, including the Castrol Rustilo DW series for rust protection.
The company has delivered a top-line growth of 7% CAGR over 5 years and a net profit CAGR of 2%.
The last 5-year ROE has been 44%.
The company is cash-rich and net debt-free. It has, over the last decade, on an average, paid over 70% of its earnings in dividends.
Currently, its dividend yield is 5.85%.
Castrol India Stock Price – 1 Year
Looking ahead, the overall market for Castrol’s portfolio is anticipated to grow in the range of 4-5% over the next 2 to 3 years.
For FY25, the management expects to maintain operating margins in a range of 22-25%.
The India market for cooling solutions (for data centers) is expected to grow at around 20%. While currently a negligible part of Castrol’s P&L, this segment is anticipated to become significant and profitable in the next 10 years.
Castrol intends to play aggressively in this space, leveraging its technology leadership.
Conclusion
So, what does all this add up to?
In a market that refuses to sit still, high-yield dividend stocks offer something rare: predictability.
You’re not betting on perfect timing or hoping for the next rally—you’re getting paid, steadily, regardless of daily noise.
The three stocks we’ve covered aren’t just about yield. They’re about turning your portfolio into a source of real, ongoing income. That’s the difference between chasing returns and building something sustainable.
But a word of caution: not all high-yield stocks are safe, and not all safe stocks will keep paying. A juicy dividend today can be a trap tomorrow if it’s built on shaky ground.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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