SYNOPSIS: Growth stocks with dividend yields above 4 percent combine steady income with earnings expansion. These companies deliver strong ROE, consistent cash flows, and healthy profit growth while maintaining disciplined capital allocation and shareholder payouts.
Growth stocks with high dividend yields offer a compelling blend of capital appreciation and steady income, making them attractive for investors seeking balanced returns. These companies typically combine strong earnings momentum, scalable business models, and consistent cash flow generation with a disciplined capital allocation policy that rewards shareholders through regular dividends.
While growth-oriented companies often reinvest profits to expand operations, a select group manages to sustain expansion while also maintaining healthy payout ratios. Such stocks can provide downside support during volatile market phases, while still participating in long-term wealth creation through earnings growth. Following are a few growth stocks with a high dividend yield of more than 4 percent:
Expleo Solutions Limited
With a market cap of Rs. 1,164 crores, the stock closed in the red at Rs. 750 on Friday, down by over 2 percent on BSE.
In terms of financial ratios, Expleo Solutions has a RoE of 16.3 percent, ROCE of 21.5 percent, and a dividend yield of 6.11 percent. Further, between FY20 and FY25, its revenue grew at a 5-year CAGR of around 31 percent, while net profit surged at a CAGR of about 21 percent.
Expleo Solutions Limited is an India-based software service provider primarily delivering software validation and verification services to the banking, financial services and insurance industry worldwide.
Ksolves India Limited
With a market cap of Rs. 722 crores, the stock closed in the green at Rs. 304.3 on Friday, up by around 0.2 percent on BSE.
In terms of financial ratios, Ksolves India has a RoE of 154 percent, ROCE of 157 percent, and a dividend yield of 4.73 percent. Further, between FY20 and FY25, its revenue grew at a 5-year CAGR of around 69 percent, while net profit surged at a CAGR of about 102 percent.
Ksolves India Limited is involved in other computer-related activities, including the maintenance of websites of other firms/ creation of multimedia presentations for other firms, etc. It is a CMMI Level 3 software development firm providing services to organisations as engineering and technology partners.
REC Limited
With a market cap of Rs. 92,189 crores, the stock closed in the red at Rs. 350.1 on Friday, down by over 1 percent on BSE.
In terms of financial ratios, REC has a RoE of 21.5 percent, ROCE of 9.96 percent, and a dividend yield of 5.09 percent. Further, between FY20 and FY25, the company’s revenue grew at a 5-year CAGR of around 13 percent, while net profit surged at a CAGR of about 26 percent.
REC Limited is a Government of India Enterprise engaged in extending financial assistance across the power sector value chain and is a Systemically Important (Non-Deposit Accepting or Holding) Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI).
MPS Limited
With a market cap of Rs. 2,573 crores, the stock closed in the red at Rs. 1,504.25 on Friday, down by around 0.15 percent on BSE.
In terms of financial ratios, MPS has a RoE of 30.5 percent, ROCE of 40.9 percent, and a dividend yield of 5.06 percent. Further, between FY20 and FY25, the company’s revenue grew at a 5-year CAGR of around 17 percent, while net profit surged at a CAGR of about 20 percent.
MPS Limited provides platforms and services for content creation, full-service production, and distribution to the world’s leading publishers, learning companies, corporate institutions, libraries, and content aggregators.
D-Link (India) Limited
With a market cap of Rs. 1,502 crores, the stock closed in the green at Rs. 423.2 on Friday, up by over 3 percent on BSE.
In terms of financial ratios, D-Link India has a RoE of 21.3 percent, ROCE of 28.3 percent, and a dividend yield of 4.86 percent. Further, between FY20 and FY25, the company’s revenue grew at a 5-year CAGR of around 13 percent, while net profit surged at a CAGR of about 24 percent.
D-Link (India) Limited is primarily engaged in marketing and distribution of Networking products. It operates through a distribution network with a wide range of product portfolios and solutions with a nationwide reach across India.
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