5starsstocks.com: What Is It?
A specialized stock-screening website called 5starsstocks.com was created to find reputable companies that pay dividends. Important characteristics include:
- Using a proprietary screening engine, thousands of stocks are filtered based on balance sheet soundness, earnings growth, payout ratio, and dividend yield.
- Real-time data integration: Yields, market capitalization, and payout indicators are updated by live feeds from the NSE, BSE, and other major international exchanges.
- Customized Alerts: Users have the ability to specify criteria for payout adjustments or new high-yield opportunities.
- User Education Hub: Offers case studies, video training, and dividend investment tips.
In contrast to generic screeners, the income stocks review on 5starsstocks.com promotes proprietary "five-star" evaluations. These evaluations are based on sector resiliency, management quality, and historical dividend stability. In erratic markets, these technologies facilitate the process of identifying 5starsstocks' top dividend companies.
How 5starsstocks.com Picks Its Income Stocks
Several filters are used in the 5starsstocks.com income stocks selecting process:
- Minimum Yield Threshold: Only equities that yield at least 4% in dividends are eligible.
- Payout-Ratio Cap: To prevent dividend traps, companies with payout ratios greater than 75% are excluded.
- Earnings Stability: A minimum of five years in a row with positive net income is necessary.
- Debt-to-Equity Ceiling: Assures balance-sheet strength by weeding out companies with a Debt-to-Equity ratio > 1.5×.
- Dividend Growth History: Gives preference to companies with at least three dividend increases over the last five years.
Weighting of Evaluation Criteria
The core of the "five-star" rating is an equal-weighted approach across four fundamental pillars, ensuring a balanced view beyond just high yield.
Key Metrics to Watch Before Investing
Below are essential metrics, simplified with examples:
Dividend Yield
This means taking the annual dividend, dividing it by the current price, and then multiplying the outcome by 100. For instance, if a stock gives ₹5 in dividends each year and is worth ₹100, the yield is 5%.
Payout Ratio
The ratio of dividends paid out compared to the company’s net income. It is calculated as: (Dividends Per Share / Earnings Per Share) × 100. For example, Taparia Tools announced an EPS of ₹80.72 and an annual dividend of ₹65.00, so the payout ratio was almost 80%.
Earnings Per Share (EPS)
The amount of net income a company makes per share it has issued. Usually, companies with higher EPS perform better financially.
Top Income Stock Picks on 5starsstocks.com for 2025
Below is a snapshot of high-quality picks based on June 6, 2025 data, each meeting the 5starsstocks.com criteria for best dividend stocks.
| Stock | Sector | Price (₹) | Dividend Yield (%) | Payout Ratio (%) | Notes |
|---|---|---|---|---|---|
| Taparia Tools Ltd. | Industrials | 19.96 | 250.50 | 55.43 | Penny-stock with exceptional yield; strong payouts per share. |
| Jagran Prakashan Ltd. | Media & Publishing | 73.09 | 15.05 | 83.12 | Interim dividend ₹6.00; stable free-cash-flow. |
| MSTC Ltd. | Financial Services | 558.25 | 8.09 | 75.60 | Government JV; consistent interim payouts. |
| Coal India Ltd. | Energy – Mining | 398.95 | 6.64 | 67.85 | Final dividend ₹5.15; yield uplifted by record Q4 profit. |
| Multibase India Ltd. | Materials – Chemicals | 1,200.00 | 7.85 | 62.40 | Resilient order book; 1,000+ clients globally. |
| Hindustan Zinc Ltd. | Metals – Non Ferrous | 502.25 | 5.90 | 118.40 | Strong Q4 FY25 profits boosted yield, but payout >100% signals caution. |
| ONGC | Energy – Oil & Gas | 240.06 | 5.15 | 46.89 | 5-year dividend CAGR ~19.6%, robust free-cash flow. |
| Castrol India Ltd. | Energy – Lubricants | 217.00 | 5.99 | 90.70 | Earnings-coverage is tight; monitor during downturn. |
| IOL Chemicals & Pharma | Chemicals & Pharma | 88.74 | 4.51 | 21.70 | Diversified product mix, moderate payout. |
| Vedanta Ltd. | Metals – Diversified | 448.00 | 9.70 | 111.60 | High yield from one-off payouts; not likely to recur. |
Stocks that Pay the Best Monthly Dividends
For investors who prefer a regular income stream, monthly dividend payers are an excellent choice. Here are top screens from 5starsstocks.com for monthly payouts:
- Embassy REIT (NSE: EMBASSY): A Real Estate Investment Trust (REIT) providing a yield of around 7.2% monthly through IDCWs.
- Mindspace REIT (NSE: MINDSPACE): Another REIT, this company provides a yield of around 7.0%.
- SBI Magnum Insta Cash Fund: While not a stock, this fund enables you to earn about 5% monthly income.
- GAEL-DD Monsoon Fund: An investment fund designed for monthly cash flow.
Top Sectors Dominating Income Stock Rankings
The sector overview from 5starsstocks.com on June 6, 2025, highlights the areas with the most high-yield opportunities. This mix allows for diversification, which plays a major role in portfolio construction.
- Materials & Industrials (25%): Reliable companies like Taparia Tools and Multibase India.
- Energy & Utilities (20%): Profits driven by PSUs and REITs, offering steady returns.
- Financial Services (20%): Companies like MSTC and NBCC with stable government partnerships.
- Consumer Staples & Discretionary (15%): Firms like Jagran Prakashan, ITC, and HUL with strong brand power.
- Real Estate (10%): REITs like Embassy and Mindspace, which must distribute 90% of their income.
- Healthcare & Pharma (10%): A sub-set of dividend payers like Dr. Reddy’s and Sun Pharma.
Comparing Recommendations with Industry Average
To measure performance, we compare the average yield of the top five dividend stocks recommended by 5starsstocks.com with the Nifty Dividend Opportunities 50 index benchmark.
| Benchmark | Yield (as of June 5, 2025) |
|---|---|
| 5starsstocks.com Top 5 Picks Average Yield | 57.22% |
| Nifty Dividend Opportunities 50 TTM Yield | 3.37% |
Interpretation
The significantly higher yield in the curated picks is driven by the inclusion of microcaps like Taparia Tools, which has an exceptional but potentially volatile yield. Investors seeking stability in large-cap stocks might prefer the 3.37% yield offered by an ETF tracking the Nifty Dividend Opportunities 50. However, 5starsstocks.com aims to identify high-quality stocks even within the high-yield segment, balancing risk and reward.
How to Build an Income-Focused Portfolio Using 5starsstocks.com
A comprehensive guide to building a balanced dividend portfolio with effective risk management
Define Your Income Goals
Your yield selection depends on your risk tolerance. Conservative investors might target 6-10%, while those comfortable with extra risk might aim for 10-15%.
Decide on your settlement frequency:
- Monthly: Regular income stream
- Quarterly: Less frequent but potentially larger payments
Utilize 5starsstocks.com
This specialized platform helps identify top dividend-paying stocks:
- Use the "Income 5-star" filter for best dividend payers
- Analyze key metrics: yield, payout ratio, and 5-year dividend CAGR
- Access real-time data from Indian exchanges
Sector Diversification Strategy
Proper diversification across sectors reduces risk and enhances portfolio stability. Allocate investments across these main sectors:
Materials
Example stocks: Tata Steel, UltraTech Cement
Energy
Example stocks: Reliance Industries, ONGC
Consumer
Example stocks: HUL, ITC, Dabur
Financials
Example stocks: HDFC Bank, ICICI Bank
REITs
Example stocks: Embassy REIT, Mindspace REIT
Diversification Guidelines
- Maintain at least 2-3 different stocks in each main sector
- Limit exposure to any single stock to maximum 10% of portfolio
- Balance between large-cap stability and small/mid-cap growth
Risk Management Framework
Portfolio Allocation
This visualization shows a balanced portfolio allocation strategy with appropriate risk distribution.
Stock Selection Strategy
| Category | Purpose | Examples |
|---|---|---|
| Large-Cap | Portfolio stability and security | ITC, HUL, Power Grid |
| Small/Mid-Cap | Higher income potential | Taparia Tools, Jagran Prakashan |
Key Risk Metrics
| Metric | Ideal Range | Purpose |
|---|---|---|
| Payout Ratio | < 75% | Sustainability of dividends |
| Debt-to-Equity | < 1.0 | Financial health |
| Dividend CAGR | > 5% | Growth consistency |
Monitoring & Rebalancing
Regular Portfolio Review
Effective monitoring is crucial for maintaining a healthy dividend portfolio:
Key Indicators to Watch:
- Yield compression/breakout
- Rising payout ratios
- Unexpected earnings updates
- Dividend sustainability metrics
Rebalancing Strategy:
- Rebalance every six months
- Sell portions of outperformers
- Add to companies maintaining quality metrics
- Use 5starsstocks.com review tools
5starsstocks.com Analysis
This specialized platform offers unique tools for dividend investors:
Pros
- Proprietary five-star rating balances yield and fundamentals
- Comprehensive filters for dividend growth, debt, and payout ratio
- Real-time data integration from Indian exchanges
- Specialized tools for income-focused investors
Cons
- High-yield microcaps carry elevated risks (due diligence essential)
- Occasional data lags for very small-cap equities
- Limited coverage of international dividend stocks
- Premium features require subscription
Is 5starsstocks.com Right for You?
The platform provides robust tools for investors seeking to navigate volatile markets. Combining top dividend stocks from 5starsstocks.com with prudent risk management can help achieve steady income targets in 2025 and beyond, whether you're aiming for higher yields or building a cautious dividend portfolio.
Explore Platform FeaturesAdditional Resources
Glossary of Key Terms
Dividend Yield Payout Ratio CAGR REITs Large-Cap Small-Cap Mid-Cap Yield Compression Ex-Dividend Date