Dividend Stars In A Volatile Market: SEBI RA Flags BPCL, IOC, Coal India For High Yields

In volatile markets, dividend-paying stocks with robust cash flows and strong business models can offer investors both resilience and regular income. 

SEBI-registered research firm Equitymaster Research highlighted three beaten-down names that currently offer dividend yields above 6%, supported by strong fundamentals and large-scale operations.

Bharat Petroleum Corporation (BPCL)

Equitymaster Research said BPCL declared a total dividend of ₹10 per share for FY25 and has maintained a 5-year average dividend yield of 6.9%. 

The company reported ₹220 billion in FY25 operating cash flow despite ₹104 billion in LPG under-recoveries. Its debt-equity ratio stands at 0.24.

BPCL has allocated ₹1.7 trillion in capex under Project Aspire, including ₹433 billion for its Bina Petrochemicals project. 

Equitymaster noted the company expects to fund both expansion and dividends through internal cash flows.

Indian Oil Corporation (IOC)

Equitymaster noted IOC’s FY25 dividend payout of ₹26.5 per share equates to 46% of its net profit. 

IOC stock trades at a price-to-book ratio of 1.05, near its 5-year average. 

Cash flows remain strong, and the company plans to increase refining capacity by 25% by FY26 through a ₹720 billion spend.

IOCL has lined up a ₹2.5 trillion capex pipeline for the next 10 years, including investments in green hydrogen, battery swapping, and SAF. 

The company’s FY25 debt-equity ratio was 0.77.

Coal India

Equitymaster stated that Coal India declared ₹26.5 per share in dividends for FY25, translating to a yield of over 8%. 

The company is debt-free and posted FY25 EBITDA of Rs 514 billion. Net profit stood at ₹353 billion, with a 5-year PAT CAGR of 29%.

Equitymaster also noted that the stock trades close to its 52-week low of Rs 349 and its 5-year average P/E of 6.8. 

Coal India plans to achieve 1 billion tonnes in annual coal production by FY29 and has over ₹250 billion in coal gasification projects lined up.

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