First things first—why the hell small caps?
Mid caps don’t offer enough room for massive growth and high dividends while big caps are currently overpriced. Enter small caps. Small caps are underpriced, unnoticed, and set to blow up from day 1 paying you a fat dividend throughout the rise up.
Now, here’s your hit list. These are the stocks with a good chance of providing you with decent dividends and with a potential for lucrative investment. Take notes.
1. Chennai Petroleum Corporation Ltd (CPCL)
🔥 Dividend Yield: ~9.55% (That’s MASSIVE)
🔥 Stock Price: ₹540.65 (affordable and ready to move)
🔥 Sector: Oil & Petroleum
Oil refining is the company’s thing. That’s money regardless of what happens. Oil prices go up? They profit. Oil prices go down? Still making money, as margins in refining are good. That’s cash flow strong enough it makes money. And 9.55% dividend yield? That was just free money for just sitting there doing nothing.
If you don’t buy CPCL, you’re just throwing away free cash.
2. Great Eastern Shipping Company Ltd
🔥 Dividend Yield: ~4.54%
🔥 Stock Price: ₹13,781.31
🔥 Sector: Shipping & Logistics
Global trade is not temporarily slowing down EVER. This is a company that’s killing it in the shipping business. Oil and gas are moved around the world by it, as well as any bulk cargo. The best part? Shipping rates fly, but the dividends remain fleshy.
It’s undervalued. At just 5.27 PE, it’s so cheap, one could say it’s on a clearance sale.
Do you want steady, high dividends with capital appreciation potential? This is it.
3. Castrol India Ltd
🔥 Dividend Yield: ~4.18%
🔥 Stock Price: ₹17,729.03
🔥 Sector: Lubricants
Let’s be real. Lubricants are needed for every car, bike, truck, and factory. None of that is changing in 2025 or any year after that. In terms of its PE ratio of 20.52, Castrol is a dominant name and investors already know it’s a solid company, but it STILL pays over 4% in dividends.
Buy it. Forget it. Collect dividends. Repeat.
4. RITES Ltd
🔥 Dividend Yield: ~3.40%
🔥 Stock Price: ₹12,714.37
🔥 Sector: Infrastructure Consulting
This is an Indian government-backed company—so you KNOW it’s getting massive contracts for railways, roads, and metros. That means steady revenue and guaranteed dividends. And infrastructure spending in India? It’s going to skyrocket.
It’s basically free money with government backing. If you don’t see the potential here, I don’t know what to tell you.
5. CESC Ltd
🔥 Dividend Yield: ~3.12%
🔥 Stock Price: ₹19,236.68
🔥 Sector: Power & Utilities
Electricity demand NEVER drops. The reason this company makes money is because you and literally everyone will always pay their electricity bill no matter what. That is why power companies are the best defensive dividend stocks.
PE ratio 8.45? Means it’s undervalued.
Guaranteed dividends? ✅
Risk-free passive income? ✅
If you want safe and consistent dividends, this one’s a no-brainer.
Final Word – Where Should You Put Your Money?
The breakdown is if you are serious of making money without doing nothing:
💰 Want the highest dividends? CPCL (9.55%)—no competition.
🚢 Want exposure to global trade? Great Eastern Shipping—demand isn’t stopping.
🛢️ Want steady auto-sector cash flow? Castrol India—no alternatives.
🚆 Want a government-backed infrastructure play? RITES Ltd—safe and growing.
⚡ Want 100% guaranteed, recession-proof dividends? CESC Ltd—money-printing machine.
Here’s the smart move:
✅ Pick at least 3 of these stocks.
✅ Hold them for 3-5 years.
✅ Sit back and collect dividends while the stock price grows.
Then if you’re not actioning and wasting time thinking, then somebody out there is taking your profits. Don’t be that guy. Have money, go in, make money, and sleep. 🚀
Want to know more smallcap stocks – Visit more stock or join our Telegram channel