Dividend yield is a simple yet powerful tool to help investors assess the financial health and stability of a company. It plays a crucial role in making informed investment decisions, particularly for those seeking passive income or long-term wealth creation.
By understanding dividend yield, investors can identify companies that consistently reward shareholders, making it easier to build a well-balanced investment portfolio.

What Is Dividend Yield ?
Dividend yield is a financial ratio that measures how much a company pays in dividends relative to its stock price. It indicates the return an investor can expect from dividends alone, excluding any capital appreciation from the stock's price increase.
Higher dividend yields may indicate strong profitability and shareholder-friendly policies. However, a very high yield could also suggest potential financial instability or declining stock prices.
How Dividend Yield Is Calculated ?
The formula to calculate dividend yield is Dividend Yield = (Annual Dividends Per Share/Current Price Per Share) x 100
For example, if a company pays an annual dividend of Rs 5 per share and the current stock price is Rs 200, then the dividend yield is
(5/200) x 100 = 2.5 per cent
This means that for every Rs 100 invested, an investor receives a dividend of Rs 2.5. If you hold 100 shares of the company, your estimated dividend income would be Rs 250.
Mid Cap Dividend Yield Stocks
Investing in mid-cap dividend stocks is a good way to achieve a balance between growth and income. While these companies may not be as large as blue-chip stocks, they often provide strong potential for expansion while offering attractive dividend yields. However, investors should conduct thorough research and consider factors such as company performance, financial stability, and dividend sustainability before making any investment decisions.
Why Are Mid-Cap Dividend Yield Stocks Attractive?
- Balance Between Stability and Growth - Mid cap companies are more stable than small caps and have higher growth potential than large caps.
- Higher Dividend Yields - It offers higher dividend yields than large cap stocks while maintaining financial stability.
- Compounding Benefits - Investing in mid caps provide both dividend income and stock price appreciation, leading to accelerated wealth creation.
- Consistent Payouts - Many mid-cap dividend stocks have a strong track record of paying dividends, even in economic downturns.
Here is a list of the top mid-cap companies in India based on their dividend yield in the past year
| Company Name | Dividends In Past One Year | Dividend Yield (Last 1 Year) |
|---|---|---|
| NMDC Ltd | 7.25 | 12 per cent |
| National Aluminium Co. Ltd. | 12 | 7 per cent |
| Indraprashtha Gas Ltd. | 10.5 | 6 per cent |
| NHPC Limited | 3.3 | 5 per cent |
| Canara Bank | 3.22 | 4 per cent |
| Nippon Life India Asset Management Limited | 19 | 4 per cent |
| Oil India Limited | 14 | 4 per cent |
| Hindustan Petroleum Corporation Ltd. | 11 | 4 per cent |
| Petronet LNG Ltd. | 10 | 3 per cent |
| Housing & Urban Development Corporation Ltd. | 6.2 | 3 per cent |
| Union Bank of India | 3.6 | 3 per cent |
| Ashok Leyland Ltd. | 6.95 | 3 per cent |
| Bank of Maharashtra | 1.4 | 3 per cent |
| Bank of India | 2.8 | 3 per cent |
| General Insurance Corporation of India | 10 | 3 per cent |
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