High Dividend Yield Stocks are very popular for three reasons:
(i) High Dividend Yield provides a defense mechanism against extreme decline in stock prices;
(ii) High Dividend Yield stocks are run by companies that generate a high cash flow. This implies that the management is efficient and the company is making sufficient cash profits. It also implies that the management is shareholder-friendly;
(iii) Dividends are not chargeable to income-tax in the hands of the investor (though the company pays dividend distribution tax)
HDFC Securities has presented a report dated 27.12.2011 identifying 67 top-quality Dividend Yield Stocks that offer dividend yield of 4.5%+ that you can buy for assured capital and dividend returns.