Dividends are a portion of a company’s profits that it chooses to distribute to its shareholders, usually in cash. They are typically declared by the company’s board of directors and paid periodically — quarterly, semi-annually, or annually. Dividend yield, meanwhile, is a simple ratio that shows how much dividend a company pays relative to its current share price.
Dividend yields matter because they show how much cash return an investor is earning relative to the price they pay for the stock. A higher dividend yield can indicate attractive income potential, making the stock appealing for income-focused investors. Here are the top 10 stocks with the highest dividend yields, falling between a market capitalization of Rs 5,000 crore to Rs 25,000 crore, according to Trendlyne.