High dividend stocks give regular income even when stock prices move slowly.
PSU and commodity companies dominate dividend yield stocks in India.
Strong cash flow matters more than short-term price returns.
Dividend-paying stocks are very popular in India, mainly for investors looking for regular income and stability. Companies with strong cash flows and steady profits usually reward shareholders with good dividends. Let’s take a look at the highest dividend yield stocks in India right now.
Vedanta Ltd is a diversified metals company with operations in zinc, aluminium, oil, gas, and iron ore. It has a market cap of 2,38,175.40 crore and a close price of 609.85. The dividend yield stands very high at 7.14%, making it the top on the list. The PE ratio is 15.89, which looks reasonable for a metals giant. Strong returns are seen with a one-year return of 38.95%. Return on equity is solid at 31.28, and ROCE is 29.11, showing good profit efficiency.
Castrol India Ltd operates in the commodity chemicals and lubricant space. It has a market cap of 18,659.79 crore and a current price of 188.65. Dividend yield is very attractive at 6.89%. PE ratio is 20.12, which reflects stable earnings. Though one-year return is -4.89%, the company maintains strong fundamentals with ROE of 42.15 and ROCE of 53.57. This stock is mainly liked for income rather than price growth.
Coal India Ltd is India’s largest coal producer and a PSU company. Market cap stands at 2,57,817.74 crore with a close price of 418.35. Dividend yield is 6.33%, supported by strong cash flows. PE ratio is low at 7.29, making the valuation comfortable. One-year return is 12.40%. ROE of 38.53 and ROCE of 24.71 show healthy business performance.
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ONGC works in oil and gas exploration and production. It has a market cap of 2,94,491.76 crore and trades at 234.09. Dividend yield is 5.23%. PE ratio remains low at 8.13. Stock has seen pressure with a one-year return of -11.05%, but PB ratio of 0.79 shows undervaluation. ROE is 9.87, and ROCE is 11.45, stable for the energy sector.
REC Limited is a specialized finance company focused on power sector lending. Market cap is 95,744.02 crore, and price is 363.60. Dividend yield is 4.95%, which is strong among finance stocks. PE ratio is just 6.03. Though one-year return is -25.98%, the business stays profitable with an ROE of 21.50. ROCE is lower at 3.51 due to the lending nature.
Hindustan Zinc Ltd operates in the mining diversified segment. It has a market cap of 2,56,244.47 crore and a close price of 606.45. Dividend yield comes at 4.79%. PE ratio is higher at 24.75. The stock delivered a strong one-year return of 38.55%. ROE is very high at 72.60 and ROCE at 62.89, showing exceptional profitability.
GAIL India is involved in gas transmission and distribution. Market cap is 1,08,068.01 crore and stock price is 164.36. Dividend yield is 4.56%. PE ratio stands at 8.68. Returns have been weak with a one-year return of -10.20%. ROE and ROCE are almost similar at 15.33 and 15.14, showing steady operations.
UTI AMC is a well-known asset management company in India. It has a market cap of 13,881.14 crore and a closing price of 1,080.10. Dividend yield is 4.43%. PE ratio is 18.98. One-year return is -10.74%. ROE of 14.44 and ROCE of 20.12 indicate moderate but stable profitability in the AMC business.
Power Finance Corporation Ltd provides finance to power sector companies. Market cap stands at 1,18,440.65 crore with a price of 358.90. Dividend yield is 4.40%. PE ratio is very low at 5.15. One-year return is -14.94%. ROE is 15.89 while ROCE is 3.46, common for lending companies.
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ITC Ltd is a diversified FMCG and tobacco major. It has the highest market cap in the list at 4,22,413.88 crore. Stock price is 337.15, and the dividend yield is 4.25%. PE ratio is 12.16. Stock saw a correction with a one-year return of -25.09%. ROE of 47.83 and ROCE of 57.00 show strong business quality and cash generation.
These dividend stocks offer some of the best yields in India. High returns, strong balance sheets, and established businesses make them attractive for income-focused portfolios, though price movement may vary from time to time.
Investors should consider doing their own research before investing in a particular stock, as dividend percentages as well as stock price fluctuations constantly affect profitability prospects.
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What are dividend yield stocks?
Dividend yield stocks are companies that pay a good part of their profits as dividends compared to the share price.
Why are dividend stocks popular in India?
They provide a steady income and are preferred in volatile markets for stability.
Is Vedanta Ltd good for dividends?
Vedanta offers a very high dividend yield due to strong cash generation from metals and mining.
Why does Coal India Ltd pay high dividends?
Coal India has stable demand, low costs, and strong government ownership support.
Is GAIL (India) Ltd safe for long-term income?
GAIL is considered stable due to its gas transmission business and consistent dividend history.