Top 7 High Dividend Yield and Low Debt Companies in India: Coal India, Power Grid Infra

In today's volatile market environment with ever-increasing interest rates, the trend among investors seems to be to invest in stocks with relatively higher dividend yields and lower debt equity. Companies that offer relatively higher dividend payments with minimal leverage represent stable businesses with strong track records of paying dividends and demonstrated abilities to weather all financial market conditions.

For this analysis, companies are shortlisted under a strict financial screening criteria. Here, companies are considered only if they are paying a dividend yield of more than 5%, a debt to equity ratio of less than 0.3x, and a market capitalisation of more than ₹1,000 crores. This analysis shows that apart from paying high dividend yields, these companies are also solid and established in their respective fields.

Balmer Lawrie Investments Ltd

Balmer Lawrie Investments Ltd is a Government Enterprise and a key holding company with a significant stake in Balmer Lawrie & Co. Ltd. Through its subsidiaries, the company has diversified exposure to businesses such as industrial packaging, greases and lubricants, and leather chemicals, which provide stability and recurring income.

The stock is currently trading at ₹71.99, with a market capitalisation of ₹1,597.99 crore. The company maintains a low debt-to-equity ratio of 0.17, reflecting a strong balance sheet. Balmer Lawrie Investments offers a dividend yield of 5.97% and has consistently maintained a healthy dividend payout ratio of 58.8%. 

Coal India Ltd

Coal India Ltd is primarily engaged in the mining and production of coal and also operates coal washeries. The company supplies coal mainly to the power and steel sectors, while also catering to cement manufacturers, fertiliser producers, and brick kiln operators. Its dominant position in India’s coal industry ensures strong and consistent cash generation.

Coal India is currently trading at ₹430.50 and has a massive market capitalisation of ₹2,65,305.55 crore. The company has a conservative capital structure, with a debt-to-equity ratio of 0.13x. It offers a dividend yield of 6.15%, supported by a dividend payout ratio of 45.1%. Strong operating cash flows and low leverage enable Coal India to sustain high dividend payouts, making it one of the most popular high dividend PSU stocks in India.

D.B. Corp Ltd

D.B. Corp Ltd operates in the print media sector and is best known for publishing leading newspapers such as Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar, and Divya Marathi. In addition to print media, the company has diversified into radio broadcasting, digital platforms, and event management, which helps support revenue stability.

The stock is currently priced at ₹236.95 and has a market capitalisation of ₹4,223.46 crore. With a debt-to-equity ratio of 0.13x, D.B. Corp maintains a comfortable balance sheet. The company offers a dividend yield of 5.06% and has sustained a dividend payout ratio of 58.4%. 

Expleo Solutions Ltd

Expleo Solutions Ltd is an IT-enabled services company providing software validation and verification services, primarily to the BFSI sector across global markets. The company’s niche specialisation and international client base allow it to operate with minimal financial leverage.

Expleo Solutions is trading at ₹884.85, with a market capitalisation of ₹1,373.30 crore. It stands out with an exceptionally low debt-to-equity ratio of 0.03x, indicating a nearly debt-free balance sheet. The stock offers a dividend yield of 5.63%, making it a relatively rare high dividend yield IT stock. 

Jagran Prakashan Ltd

Jagran Prakashan Ltd is a diversified media conglomerate with interests across newspapers and magazines, FM radio, digital media platforms, outdoor advertising, promotional marketing, and event management. Its diversified business model supports steady cash flows even as media consumption patterns evolve.

The stock is currently trading at ₹68.59, with a market capitalisation of ₹1,492.89 crore. The company maintains a low debt-to-equity ratio of 0.10x and offers a standout dividend yield of 8.77%, one of the highest among the shortlisted companies. Jagran Prakashan has consistently maintained a dividend payout ratio of 67.5%.

MSTC Ltd

MSTC Ltd, formerly known as Metal Scrap Trade Corporation, is a Government of India-owned enterprise engaged in trading activities, e-commerce operations, and the disposal of ferrous and non-ferrous scrap, surplus stores, minerals, and agri and forest products. Government ownership and its specialised business model provide earnings visibility.

MSTC is currently priced at ₹470.20, with a market capitalisation of ₹3,310.22 crore. The company maintains a debt-to-equity ratio of 0.17, reflecting low leverage. It offers a dividend yield of 8.62% and has consistently maintained a healthy dividend payout ratio of 59.9%.

PowerGrid Infrastructure Investment Trust

PowerGrid Infrastructure Investment Trust, commonly known as PowerGrid InvIT, owns, constructs, operates, and maintains power transmission assets across India. Registered with SEBI as an InvIT on January 7, 2021, the trust is structured to distribute a significant portion of its cash flows to investors.

PowerGrid InvIT is trading at ₹93.40 and has a market capitalisation of ₹8,499.39 crore. The trust maintains a debt-to-equity ratio of 0.14 and offers a dividend yield of 6.47%. Backed by regulated assets and predictable revenue streams, PowerGrid InvIT provides stable income visibility.

Conclusion

The above companies meet a well-defined framework of high dividend yield, low debt, and adequate market capitalisation, making them suitable for investors seeking steady income and lower balance sheet risk. Strong cash flows, conservative leverage, and consistent dividend payout histories provide visibility on dividend sustainability. 

While dividend yield alone should not drive investment decisions, combining it with financial stability and business resilience creates a compelling case for long-term portfolio inclusion.