Classification: Long-term equity investing – combining value and high dividend yield in Indian stocks.

Directly naming “best stocks to buy” for you would be investment advice, which I must avoid. What I can do is:

1) define clear value + dividend filters, and

2) give illustrative examples of stocks that currently fit this style (not recommendations).

---

1. How to define “value + high dividend yield” (India)

Use these filters as a starting point:

1. Dividend Yield

- Aim for ≥ 4–5%, since Nifty 50 itself is around 1.3% dividend yield as of early December 2025. (trendlyne.com)

- Check 5–10 years of consistent dividends, not just one special year.

2. Valuation (Value Angle)

- P/E below or near industry average (avoid very high P/Es unless strong growth visibility).

- P/B < 2–3 for financials and capital-heavy PSUs (with acceptable ROE).

- EV/EBITDA reasonable vs peers for commodities/PSUs.

3. Quality & Sustainability

- ROE ≥ 12–15% over cycle (slightly lower may be acceptable for utilities/PSUs).

- Payout ratio ~30–70%: too low → yield will stay low; too high with weak earnings → dividend at risk.

- Balance sheet strength: low/moderate leverage, healthy interest coverage.

4. Business & Policy Risk

- PSUs often have high yields but are exposed to government policy, cyclicality and ESG pressure (coal, oil, metals).

- Ensure the dividend is backed by cash flows, not just asset sales or one-offs.

---

2. Illustrative examples that currently screen well on yield + value

These are examples only, based on publicly available data as of Oct–Nov 2025. They are not buy/sell recommendations and you must re-check current data before any decision.

A. Large-cap / PSU “value + yield” names

- Coal India Ltd (NSE: COALINDIA)

- Dividend yield: ~6.9–8% based on recent lists. (etnownews.com)

- PSU monopoly in coal; strong cash generation; trades at single‑digit P/E historically.

- Key risks: coal demand transitions, ESG pressure, pricing/policy interference.

- Oil & Natural Gas Corp – ONGC (NSE: ONGC)

- Dividend yield: around 4.8–5% in recent screeners. (etnownews.com)

- Upstream oil & gas PSU; cash-rich, but earnings are commodity and policy driven.

- Valuation typically looks “cheap”, but cyclicality is high.

- Hindustan Zinc Ltd (NSE: HINDZINC)

- Dividend yield: around 6–7% in recent lists. (etmoney.com)

- Very high margins and cash flows; parent is Vedanta group.

- Risks: zinc/lead/metal price cycles, promoter actions, potential special dividends not being permanent.

These PSU/commodity names often look attractive on P/E + dividend yield, but you must be comfortable with cyclical and policy risk.

B. Mid & small-cap income + value ideas (more volatile)

- Jagran Prakashan Ltd (NSE: JAGRAN)

- Dividend yield: ~6%+ as per recent lists. (etmoney.com)

- Cash-generative media business (print, radio, digital); relatively low valuation vs earnings.

- Risks: structural shift from print, ad cycles.

- MSTC Ltd (NSE: MSTCLTD)

- Appears on high yield + good ROA screens; dividend yield around 8% in some screeners. (etmoney.com)

- PSU trading/auction platform; smaller market cap, so higher volatility & liquidity risk.

- Gujarat Pipavav Port Ltd (NSE: GPPL)

- Dividend yield: ~5% in recent data. (etnownews.com)

- Port asset with steady cash flows; infra-style business.

- Risks: cargo/cycle exposure, regulatory and concession-related issues.

These are typical examples where yield + moderate valuations + reasonable profitability coexist, but liquidity and business risk are higher than in large caps.

C. Growth + moderate dividend (blend of value, income, growth)

- Tata Consultancy Services (TCS), HCL Technologies, etc.

- Recent data shows TCS dividend yield ~4.3% and HCL Tech ~3.9%. (etnownews.com)

- These are basically growth + quality IT names paying moderate dividends.

- Valuations (P/E) are higher than PSUs, but earnings visibility is stronger.

- Castrol India, select banks (e.g., Canara Bank in FY24–25)

- Screens show Castrol ~5.8% yield; Canara Bank even higher in a specific year due to large payouts. (etmoney.com)

- You must check whether such high yield is recurring or due to one-off specials.

This bucket suits investors willing to accept lower yield (2–5%) in exchange for better long‑term growth and possibly more stable businesses.

---

3. How to build your own value + dividend list (practical steps)

Use this simple process:

1. Run screens for dividend yield ≥ 4–5%

- Economic Times High Dividend Yield Screener (economictimes.indiatimes.com)

- Screener.in “Dividend yield stocks” (screener.in)

- ET Money High Dividend Yield stocks list (etmoney.com)

2. Apply value & quality filters

- Remove stocks with:

- Negative or highly volatile EPS,

- Very high payout ratio with falling profits,

- Very high debt or pledged promoter holding.

- Prefer:

- ROE > 12–15% (or acceptable vs sector),

- P/E and P/B below or near sector averages.

3. Cross-check index and sector basics

- Compare to Nifty 50 dividend yield (~1.3%) and PE (~22–23) as a broad benchmark; anything giving 5–7% yield is clearly a high-yield play relative to index. (trendlyne.com)

4. Diversify

- Don’t concentrate only in one area (e.g., all coal/oil/PSUs).

- Build a basket:

- 30–40% in stable large-cap/PSU yielders,

- 30–40% in quality growth + moderate yield names,

- 20–30% in carefully chosen mid/small-caps (if risk appetite allows).

- These weights are illustrative only, not advice.

5. Re-check latest data before buying

- Dividend yields change daily with price and annual payouts.

- Always reconfirm latest price, EPS, dividends, and corporate actions on NSE/BSE or company filings.

- Live stock data can change; I cannot give intraday or real-time numbers here.

---

4. Key risks with “high dividend + value” strategy

- Yield traps: Very high yields can come from a falling price due to deteriorating business.

- Cyclical earnings: PSUs and commodity companies look cheap at peak cycles; when the cycle turns, both profits and dividends can fall.

- Policy/governance risk: Particularly in PSUs and some small caps.

- Concentration risk: Overweighting one sector (e.g., energy, metals) because it looks cheap and high-yielding.

---

You can use the above framework and the cited screeners to shortlist your own candidates and then take a call with your risk profile and time frame, ideally in consultation with a SEBI-registered investment adviser or wealth manager.

If you have any further queries, please connect with us on 022-6290-10141 (Timings : 09.00 AM to 05.00 PM) or you can email us on info@cniinfoxchange.com