5 high dividend-yield stocks trading near 52-week lows. Is this a golden entry point? – Stock Insights News

In a market where volatility remains high amid macroeconomic uncertainty, dividend-paying stocks offer a sense of stability. 

Some stocks not only offer high dividend yields but are also trading near their 52-week lows. Investing at lower levels gives investors higher yields than those buying at higher levels.

Not only that, but they can also offer potential capital appreciation and diversify portfolios due to the lower volatility of such stocks.

For income-seeking investors, this combination can look attractive. However, finding such stocks with strong fundamentals is challenging.

In this editorial, we will look at five such stocks that are trading near 52-week lows and also have high dividend yields.

Let’s take a look…

#1 NALCO

First on the list is NALCO.

NALCO is a Navaratna Central Public Sector Enterprise (CPSE) under the Ministry of Mines. 

It produces bauxite, alumina, aluminium, and power and is one of Asia’s largest integrated primary producers of aluminium.

73% of its revenue comes from aluminium, while 27% comes from chemicals. NALCO earns 67% from the domestic market and 33% from exports.

NALCO has a rich history of rewarding shareholders. Over the last five years, it has distributed 110% of its net profit as dividends, with a dividend per share of Rs 4.

However, its dividend payout in FY24 was the lowest in the last five years. Nevertheless, it paid a dividend of Rs 8 per share in nine months of FY25, translating into a yield of 6%.

NALCO Dividend History (FY20-24)

Going ahead, NALCO has various growth initiatives in place. It has envisioned a corporate plan to boost revenue and profitability. To this end, the company is expanding its capacity with a capital expenditure of Rs 82.5 billion (bn).

It’s adding a fifth stream to its alumina refinery, increasing its refining capacity to 21 lakh metric tons (MTPA) annually. This is set for commissioning by Q2FY26. It’s also setting up a 5 lakh MTPA capacity smelter expansion project at Angul for a capex of Rs 170 bn.

In FY25, it secured a 50-year mining lease from the Odisha state government for the Pottangi bauxite mines, which have 75 million (m) tonnes of mineable reserves.

NALCO aims to push growth through expanding capacity in the coming years, as the demand of metals is expected to surge.

However, recent concerns about a slowdown in the global economy and a recession in the US could cause disappointment in the short term.

#2 MSTC

Next on the list is MSTC.

Established in 1964, MSTC is a Mini Ratna Category-I Public Sector Undertaking in which the Government of India holds a 64.7% stake.

The company is strategically vital to the government. It operates in the domains of commodities trading, e-commerce, e-auction, and e-procurement services. It played a vital role in introducing the government sector into B2B e-commerce for selling natural resources and government assets through auctions.

As a PSU, MSTC is known for paying out high dividends. Its payout ratio has constantly increased over time. Over the last five years, the company has paid an average Rs 10 per share dividend, with a payout ratio of 38.8%.

In FY24, it had a dividend payout ratio of 53.4%, translating into a dividend per share of 15.5. In the nine months of FY25, the company has paid Rs 40.5 dividend, which translates into a yield of 8%.

MSTC Dividend History (FY20-24)

Looking ahead, the company has multiple growth levers for future growth. It has expanded into mineral offshore block auctions, including critical minerals. It has also signed an agreement to auction minor mineral blocks in Ladakh, Goa, Arunachal Pradesh, and M-Sand in Rajasthan. 

MSTC has also developed the MSTC Realty Portal for auctioning the non-performing assets of non-public sector banks. 

It has signed an agreement with Bharat Petroleum to manage scrap sales. It’s also setting up a data center, which is expected to be operational by the first half of 2025.

However, MSTC’s e-commerce vertical is facing stagnation due to intense competition. Still, the management is optimistic and expects the segment to grow at 8-10% annually.

#3 DB Corp

Next on the list is DB Corp.

DB Corp, one of India’s leading print media companies, publishes five newspapers and periodicals, including Dainik Bhaskar and Divya Bhaskar. It also has radio licenses for 30 cities in 7 states under the brand name ‘94.3 My FM’.

DB Corp has a strong track record of dividend payments. Over the past five years, it has distributed 56% of its net profit as dividends. It has paid an average dividend of Rs 7.3 per share.

In FY24, it also distributed 54.4% of its profit as dividends, translating into a dividend of Rs 12.9. It has paid a dividend of Rs 20 in FY25 so far, translating into a yield of 8.7%.

DB Corp Dividend History (FY20-24)

Going forward, the management reiterated its commitment to sustaining performance despite the high base of election-related advertisements last year. 

Its digital business is on a strong growth trajectory, having reached 19 m monthly active users (as of Q2FY25), and the aim is to sustain this. The company is expanding into 14 states, including Uttar Pradesh and Uttarakhand, for digital mobile app outreach.

The company is facing circulation challenges. To overcome this, a new reader engagement plan costing Rs 140 m has been launched to encourage readers and regain lost circulation. The management is actively conducting door-to-door surveys to reconnect with readers and improve circulation figures.

It’s also trying to maintain costs, which is expected to help profitability.

#4 Coal India

Next on the list is Coal India.

Coal India is a public-sector undertaking owned by the Ministry of Coal, Government of India. It’s the world’s largest coal producer, meeting 80% of India’s coal demand.

It’s one of the preferred investment options for investors seeking consistent dividends. Since its listing in 2010, the stock’s minimum yield has been 5.3%, with a consistent payment track record.

Over the last five years, it has distributed 54.3% of its net profit with a dividend per share of Rs 19.

In nine months of FY25, it has paid a dividend of Rs 26.4 per share, translating into a yield of 7%.

Coal India Dividend History (FY20-24)

Going forward, coal will remain a critical energy source. Due to rising power demand, the demand for coal is expected to remain strong.

Along with investing in critical minerals, Coal India is investing heavily in diversification into renewable energy to meet India’s renewable energy target.

With a ramp up in mining capacity and coal production, the company aims to increase its renewable energy capacity to 3 gigawatts (GW) by FY30 at an investment of Rs 150 bn. Beyond that, it’s also investing Rs 100 bn in setting up another 2 GW.

With cash and cash equivalents of Rs 53.5 bn (FY24), the company is expected to pay consistent dividends to shareholders in the coming years.

#5 Hindustan Zinc

Last on the list is Hindustan Zinc.

Hindustan Zinc is India’s largest integrated zinc producer and the second largest globally.

Its zinc operations command about 75% of the primary zinc market in India. Additionally, it ranks as the third-largest silver producer globally, boasting an annual capacity of 800 MT.

Hindustan Zinc is one of the highest dividend-paying listed companies. It has declared dividends 38 times in the last 20 years, with an average dividend of Rs 14.9 per share.

The payout has been maintained in the last four years as well. It has paid an average dividend of Rs 32 per share during this period. 

In FY23, it distributed a total of Rs 320 bn, followed by Rs 54.9 bn in FY24. The high dividend payout in FY23 was due to parent Vedanta’s deleveraging effort.

However, the same has now moderated. In FY25 till date, the company has paid a dividend of Rs 29, translating into a yield of 7.3%.

Hindustan Zinc Dividend History (FY20-24)

Looking ahead, Hindustan Zinc aims to double its metal production to two million tonnes per annum within the next five years.

The company is also expanding into critical minerals and has won several blocks across the country, which will gradually start contributing to its revenues.

Additionally, it operates a captive power plant and aims to meet 70% of its energy requirements through renewable sources by 2027. This will result in cost savings directly boosting profitability.

Hindustan Zinc had cash and cash equivalents of Rs 101.9 bn as of FY24. With its strong track record of generating free cash flow, it’s expected to continue rewarding shareholders in the years to come.

Conclusion

Dividend-paying stocks not only offer an opportunity to generate passive income but also offer the added benefit of capital appreciation.

Buying such stocks at lower levels i.e., higher yields, boosts the total return when the stock price recovers.

However, like every stock, these too carry risk. Therefore, choosing companies with strong fundamentals is essential. 

As with any investment, it’s vital to assess financial performance, corporate governance, and growth prospects, to make informed decisions.

Happy Investing.

Disclaimer

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