A healthy dividend yield is beneficial to investors as well as the company. For example, passive income and a company’s financial well-being are great for investors. From a company’s perspective, it underscores the trust in the business’s ability to generate sustainable profits and the willingness to share them with owners.
So, does a high dividend yield attract only the common investor? For anyone who thinks that is probably mistaken. There are stocks held by the super investors or like we call them, the Warren Buffetts of India that boast of some solid dividend yield. Now these ace investors might not have bought these stocks for that sole reason, but it is definitely a part of the package.
Here are 2 stocks held by the Warren Buffets of India, that have recorded enviable dividend yields. With the fresh financials for them out, it is a good time to take a look at them.
Chennai Petroleum Corporation Limited is in the business of refining crude oil to produce & supply various petroleum products and manufacture and sale of lubricating oil additives.
With a market cap of Rs 9,396 cr, Chennai Petroleum Corporation Limited is partly owned by Indian Oil Corporation Ltd (IOCL), which holds a stake of 52% as a promoter.
One of India’s Warren Buffett, Dolly Khanna holds a stake in the company since June 2022 (as per Trendlyne.com), which is now 1.09% worth Rs 102 cr.
The company has a current dividend yield of 8.72%, which is the second highest after its parent company IOCL’s 8.91% when compared to industry peers (as per screener.in). In simple words, it means that for every Rs 100 invested in the company’s stock, an investor receives Rs 8.72 annually as dividends.
The industry median yield is just 3.85%, which is considerably lower compared to Chennai Petroleum Corporation Ltd.
Let us look at the other financials now.
The company’s sales were at Rs 36,973 cr for FY20 which has jumped to Rs 59,356 as for FY25. That is a compound growth of 10% in 5 years.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for Chennai Petroleum Corporation Ltd has seen nothing short of a roller coaster ride in the last 5 years. Take a look:
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA (Rs Cr) | -2,157 | 2,012 | 2,732 | 5,698 | 4,476 | 1,016 |
Same is the case with the net profits for Chennai Petroleum Corporation Ltd, a ride full of ups and downs…
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit (Rs Cr) | -2,056 | 257 | 1,352 | 3,532 | 2,745 | 214 |
The share price of Chennai Petroleum Corporation Ltd went from around Rs 62 in late April 2020 to its price as on closing on 25th April 2025, which is Rs 631. That’s a jump of almost 920% in just 5 years.
If one had invested just 1 lac in the company 5 years back, it would today be over Rs 10,00,000.
The current price of Rs 631 is over a 50% discount from the stocks all-time high price of Rs 1,275.
The company’s share is trading at a current PE of 44x, while the industry median is 21x. The 10-year median PE for Chennai Petroleum Corporation Ltd is close to 5x, while the industry median for the same period is 10x.
Incorporated on November 10th, 1930, in Hyderabad, VST Industries Ltd (originally Vazir Sultan Tobacco Company) is an associate of British American Tobacco Plc., a global leader in the cigarette industry. VST operations include the manufacture and trading of cigarettes and tobacco products.
With a market cap of Rs 5,143 cr, VST is the 3rd largest player in the domestic cigarette market and its cigarette brand Total is among the top 10 brands in the industry.
One of the most followed Warren Buffett of India, the retail king, Radhakishan Damani has held a stake in VST since December 2019 as per data on Trendlyne.com, either in his own portfolio or through his companies, Bright Star Investments Pvt. Ltd or Derive Trading and Resorts Pvt. Ltd.
Currently he holds a 26% stake under Bright Star Investments Pvt Ltd and another 3.15% under his individual portfolio. That’s holding worth almost Rs 1,500 cr.
VST has a current dividend yield of 4.5%, which is the highest when compared to industry peers (as per screener.in). In simple words, it means that for every Rs 100 invested in the company’s stock, an investor receives Rs 4.5 annually as dividends.
The industry median yield is just 1.96%, which is much lower compared to VST.
As for the financials, the company’s sales have jumped from Rs 1,239 cr in FY20 to Rs 1,398 in FY25m which is a compound growth of 2% in 5 years.
EBITDA has however seen some big drop from Rs 415 cr in FY20 to Rs 279 in FY25.
The net profits have been around the same range for the last 5 years, with the FY25 number recording a new low. Take a look:
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit (Rs Cr) | 304 | 311 | 320 | 327 | 302 | 290 |
VST Industries share price was around Rs 253 in April 2020 which has grown to its current price of Rs 303 (As on closing of 25th April 2025). This is a jump of around 20%.
At the current price of Rs 303, the company’s share is trading at a discount of 38% from its all-time high of Rs 487.
The share is however trading at a PE of 24x while the industry median is 33x. The 10-year median PE of the company and the industry are both at 19x.
The company’s board recently approved a final dividend of Rs 10 per equity share of Rs 10 each, subject to approval in its 94th AGM on 23rd July 2025, with the record date fixed as 4th July 2025.
Dividend and Rule?
With their high dividend yields of 8.72% and 4.5% respectively, Chennai Petroleum Corporation Ltd and VST Industries Ltd have found a place in the portfolios of the Warren Buffetts of India like Radhakishan Damani and Dolly Khanna. These stocks look interesting for income-focussed investors, but not without their share of risks.
The huge 920% increase in Chennai Petroleum’s share price over the last 5 years has caught the eye of many, while VST Industries also gets its share of the limelight with a steady dividend yield. Although both stocks are currently trading at a discount on their all-time high prices. Not to forget the wavy figures on the profit front for them both.
What’s next for these to dividend darlings? For investors eyeing some passive income and growth, these stocks offer a good mix of reward and riddle. For now, it would be advisable to keep a close eye on both stocks, follow their trajectories, weigh the risks, and decide if you’re ready to join India’s Warren Buffetts in betting on these dividend legends. Add to watchlist, may be?
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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