Yielding Dividend Stocks to Watch Out for 2026

A dividend is a portion of a company's profit distributed to shareholders, usually in cash. Investors show interest in high-dividend stocks because it ensures regular income with stability.

As India's stock market is expected to provide better returns in 2026 with recent reforms by the government and improved corporate earnings, it will be a double gain for investors if they prefer buying the dividend stocks, which provide high returns and stable income.

When the investors approach a dividend stock, they will usually be looking for stocks with high yield, which reflects how much the dividend is relative to its share price. For example, if a stock priced at 200 rupees pays 10 rupees in dividends during the year, its yield is 5 per cent. Higher yields mean more income.

Coal India

Coal India remains one of the highest dividend-paying stocks in India, with a yield of nearly 7-8%. In 2024-25 it distributed dividends worth about 23 rupees per share, following significant cash flows from coal mining operations. In 2025, the company's share price gave a robust return by rising 20 per cent.

ONGC

Oil and Natural Gas Corporation (ONGC) stocks are known for their dividends. In the fiscal year 2024-25, ONGC paid dividends of approximately 14 rupees per share, resulting in a yield of about 5-6 percent. ONGC is also expected to distribute high dividends in the coming year if the oil and gas sector performs well.

BPCL

Bharat Petroleum Corporation Limited (BPCL) declared a dividend of about 21 rupees per share in 2024-25, with a yield close to 6 per cent. The company's significant cash flows, enabling it to pay regular dividends on consistent basis.

NTPC

NTPC, India's largest power producer, is consistent in rewarding the shareholders with high dividends. It paid a dividend of about 7 rupees per share, with a yield of around 4 per cent in 2025.

Power Grid

Power Grid Corporation of India, which operates the country's electricity transmission network, distributed a dividend of about 10 rupees per share in FY 2024-25, with a yield of nearly 5 percent.

ITC Ltd

ITC, one of the largest FMCG companies in India, with businesses including cigarettes, packaged foods, hotels, and paper products, is also known for its dividend policy. In the financial year 2024-25, ITC declared dividends of about 16 rupees per share, with a yield of nearly 5 percent.

In 2025, ITC's share price saw a fall of 18%. As the FMCG sector is expected to witness significant growth in the next year with GST rationalisation and improved domestic demand, the company's stock has turned out to be a better buying option for those aiming for stable income and returns.

Hindustan Zinc

Hindustan Zinc, a leading producer of zinc, lead, and silver and a subsidiary of Vedanta Limited, is another strong dividend payer. In 2024-25, it declared dividends worth about 27 rupees per share, which translates into a yield of nearly 6 percent.

Hindustan Zinc has paid shareholders dividends on a consistent basis over the past decade, often ranking among the top dividend yield stocks in India.