Dividend stocks: In a market where investors often focus on share-price appreciation, dividend-paying stocks can offer another source of potential returns. For investors looking to build an income-oriented , companies with a consistent dividend payout and relatively high dividend yield can become particularly attractive, especially when valuations and market conditions remain uncertain.
essentially helps investors assess the income they receive from a stock relative to its market price. However, a high yield alone does not necessarily make a stock attractive. The sustainability of dividends, earnings strength, business fundamentals and future cash flows are equally important considerations.
A list of top dividend-paying companies based on fundamental strength identifies 10 stocks with dividend yields ranging from 3.3% to 9.7%. The list, compiled by Religare Broking, includes companies from sectors such as power, mining, finance, crude oil, ports, IT, gas transmission and industrial gases and fuels.
The data in the accompanying list is based on adjusted dividends following corporate actions, while the CMP is as of August 31, 2026. Here are the 10 stocks investors can consider while looking for dividend income.
Top dividend yield stocks to watch
1. PTC India
Dividend yield: 9.7% | CMP: ₹151 | P/E: 8.7x
tops the list with a dividend yield of 9.7%, making it the highest-yielding stock among the 10 companies featured. It is the only firm in the list that beats the PPF interest rate, which stands at 7.10%.
The company operates in the power sector, putting it in an industry that plays a critical role in India’s energy ecosystem.
The stock has declined 15% in 1 month, and over 11% in the last 1 year.
PTC India has already announced two interim dividend payouts in 2026— ₹3 per equity share in February, followed by a substantial ₹23 per share, or 230%, interim dividend in August.
Adding to its dividend track record, the company has also proposed a final dividend of ₹5.50 per equity share. The record date has been set for October 7, 2026, subject to shareholders’ approval at the upcoming annual general meeting.
At a CMP of ₹151 and a P/E ratio of 8.7x, the stock also features the lowest P/E multiple among several companies on this list. Its dividend per share for FY26 stood at ₹14.7, compared with ₹7.8 in FY25.
2. Coal India
Dividend yield: 6.6% | CMP: ₹402 | P/E: 7.9x
ranks second with a dividend yield of 6.6%. The mining company reported a dividend per share of ₹26.4 in FY26, up from ₹25.5 in FY25.
The stock has declined 1% in 1 month, and added 6% in the last 1 year.
The company’s board has approved a final dividend of ₹5.25 per equity share for the financial year 2025–26, with September 4, 2026, fixed as the record date to determine eligible shareholders.
Ahead of the final payout, the mining major had announced two interim dividends during the year— ₹5.50 per share in February, followed by another ₹5.50 per share payout in July.
With a CMP of ₹402 and P/E of 7.9x, Coal India combines a relatively high dividend yield with a modest valuation multiple. For income-focused investors, the stock stands out for the scale of its dividend payout.
3. REC
Dividend yield: 6.2% | CMP: ₹315 | P/E: 5.3x
Power financier offers a dividend yield of 6.2% at a CMP of ₹315. The stock has a P/E multiple of just 5.3x.
REC successfully completed a final dividend payout of ₹1.55 per equity share for FY2025–26. The stock turned ex-dividend, with August 14, 2026, set as the record date for determining eligible shareholders.
Before the final dividend, REC had also announced three interim dividend payouts during the year— ₹4.25 per share in July, ₹3.20 per share in March and ₹4.60 per share in February.
Despite its dividend track record, REC shares have remained under pressure, falling around 13% over the past one month and more than 12% over the last one year.
REC’s dividend per share increased to ₹19.6 in FY26 from ₹20.4 in FY25. While the latest dividend figure is lower than the previous year, the company remains among the highest-yielding stocks in the list.
4. Oil & Natural Gas Corporation
Dividend yield: 5.8% | CMP: ₹232 | P/E: 6.7x
Oil & Natural Gas Corporation, or , is next with a dividend yield of 5.8%. The crude-oil major has a CMP of ₹232 and trades at a P/E multiple of 6.7x.
The company’s 2026 dividend calendar reflects a strong series of payouts for shareholders. The stock turned ex-dividend on September 4, 2026, for a final dividend of ₹1 per equity share for FY2025–26, with the same date set as the record date to determine eligible shareholders.
Earlier in the year, the state-backed exploration major had also announced a second interim dividend of ₹6.25 per equity share in February 2026. It has shed 3% in 1 month and 0.5% in the last 1 year.
Its dividend per share stood at ₹13.5 in FY26, compared with ₹12.3 in FY25, indicating an increase in dividend payout over the period.
5. Gujarat Pipavav Port
Dividend yield: 5.7% | CMP: ₹168 | P/E: 14.9x
offers a 5.7% dividend yield, placing it fifth on the list. The stock has a CMP of ₹168 and a P/E of 14.9x.
The stock turned ex-dividend for a final dividend of ₹5 per equity share on September 2, 2026, which was also the record date for determining eligible shareholders.
The final dividend is scheduled to be paid to eligible shareholders on October 9, 2026.
Its dividend per share increased to ₹9.6 in FY26, compared with ₹7.7 in the previous financial year, making the port operator another notable income-oriented stock.
6. Power Finance Corporation
Dividend yield: 5% | CMP: ₹336 | P/E: 4.3x
Power Finance Corporation, or , has a 5% dividend yield and a CMP of ₹336. The company trades at a P/E ratio of only 4.3x, the lowest among the stocks in this list.
Most recently, the stock turned ex-dividend for an interim dividend of ₹3.90 per equity share on August 27, 2026, with the payout expected to reach eligible shareholders in early September.
This followed a final dividend of ₹3.95 per equity share, for which the stock had turned ex-dividend on July 31, 2026. Earlier in the year, PFC had also announced two interim dividends— ₹3.25 per share in March and ₹4 per share in February.
Its DPS stood at ₹16.7 in FY26, compared with ₹13.5 in FY25, showing growth in the dividend payout.
7. Tata Consultancy Services
Dividend yield: 4.5% | CMP: ₹2,399 | P/E: 16.2x
is the only IT major among the top-ranked stocks and offers a dividend yield of 4.5%. Its CMP stood at ₹2,399, with a P/E ratio of 16.2x.
Most recently, the stock turned ex-dividend on July 15, 2026, for a first quarterly interim dividend of ₹12 per equity share. This followed a substantial final dividend of ₹31 per share, for which May 25, 2026, was set as the record date, with the payout credited to eligible shareholders by mid-June.
Earlier in January 2026, the company announced a significant combination of payouts, comprising a third interim dividend of ₹11 per equity share and a special dividend of ₹46 per share, rewarding shareholders from its cash surplus.
TCS reported a dividend per share of ₹109 in FY26, compared with ₹124 in FY25. Despite the lower DPS, the stock remains notable for its dividend-paying profile.
8. HCL Technologies
Dividend yield: 4.1% | CMP: ₹1,312 | P/E: 19.6x
offers a 4.1% dividend yield at a CMP of ₹1,312. It has a P/E ratio of 19.6x, the highest among the 10 stocks featured.
The stock most recently turned ex-dividend on July 17, 2026, for its second quarterly interim dividend of ₹12 per equity share. The dividend was subsequently credited to eligible shareholders by the end of July.
Earlier, the company had declared an interim dividend of ₹24 per share, with the stock turning ex-dividend on April 24, 2026. The year had begun with another interim dividend of ₹12 per equity share, for which January 17, 2026, was fixed as the record date.
The company paid ₹54 per share in dividends in FY26, compared with ₹30 in FY25, representing a substantial increase in DPS.
9. GAIL (India)
Dividend yield: 3.5% | CMP: ₹173 | P/E: 11.8x
, which operates in gas transmission, has a dividend yield of 3.5%. The stock stood at ₹173, while its P/E multiple was 11.8x.
GAIL has maintained an active dividend track record in 2026. Most recently, the company turned ex-dividend on September 2, 2026, for a final dividend of ₹0.50 per equity share, representing 5% of its paid-up equity share capital. September 2 was also the record date for determining shareholders eligible for the payout.
The final dividend is scheduled to be paid on September 26, 2026. Earlier in the year, GAIL had also declared an interim dividend of ₹5 per equity share, with the stock turning ex-dividend on February 5, 2026.
Its dividend per share was ₹6 in FY26, compared with ₹6.5 in FY25. While its yield is lower than that of the top-ranked stocks, GAIL still features among the higher dividend-yielding companies in the screened list.
10. Petronet LNG
Dividend yield: 3.3% | CMP: ₹301 | P/E: 10.7x
rounds out the list with a 3.3% dividend yield. The stock had a CMP of ₹301 and trades at a P/E multiple of 10.7x.
The company’s board approved a final dividend of ₹3 per equity share, representing 30% of its paid-up equity share capital. The stock turned ex-dividend on June 12, 2026, which was also set as the record date for determining eligible shareholders.
The dividend payout is scheduled for October 16, 2026, subject to shareholders’ approval at the company’s 28th Annual General Meeting, scheduled for September 28, 2026.
Its dividend per share stood at ₹10 in FY26, unchanged from ₹10 in FY25, indicating stability in the payout.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.