High Dividend Yielding Stocks: CASTROL INDIA

Castrol is a known brand and the second largest company, with 22 per cent market share, in the domestic lubricant industry. It has not only been consistent in revenue and profit growth in the past but has a good dividend paying record as well. Further, it is a zero-debt company and generates large cash flow. In calendar year 2010, it generated `525 crore operating cash flow, of which  421 crore was paid back in the form of dividend. It generates 140 per cent return on capital and 90 per cent return on equity. The stock is trading at 19 times its estimated calendar year 2012 earnings and offers 3.1 per cent dividend yield. Good, considering the management expects its earnings to grow at 15-20 per cent annually over the next five years.