5 Best Dividend Stocks to Add to Your 2026 Watchlist

If there's one category of stocks that investors love no matter the market situation, its high dividend yield stocks.

Dividends not just offer regular income. When reinvested in well-run businesses, they can boost long term investing returns via compounding.

While earnings can be manipulated, healthy and consistent dividends reflect high quality of earnings. It also reflects the management's intent to share profits with minority shareholders.

But companies that actually pay big dividends and also have strong balance sheets is rare.

And not all the dividend stocks may necessarily need your attention. For example, a stock with dividend yield of 5%, with a highly indebted balance sheet will only make you poorer when the debt impact plays out.

The key is to assess if the high dividend payments are sustainable in the future. Given the volatile market scenario, it makes sense to look at high dividend yield stocks again.

Here are 5 to add to your watchlist.

These stocks are selected using Equitymaster's Screener - High Dividend Yield Stocks in India. We have chosen names from across market-cap categories.

#1 Vertis Infrastructure Trust

First on the list is Vertis Infrastructure Trust.

The company is an InvIT of road sector assets sponsored by Galaxy group. It has a portfolio of 26 operational road project SPVs, 10 tolls, 2 annuity, and 14 HAM.

Vertis benefits from the experience of group entities which have a long track of managing these types of assets. While this is Galaxy's first investment in Indian roads, it benefits from KKR's experience in renewable energy and transmission sector in India.

Coming to its dividend yields, Vertis Infra Trust currently has a high yield of 194%.

In FY25, the company paid a dividend of Rs 210 per share. However, it lacks a strong long term record as it was only recently listed.

Vertis Infrastructure Trust Dividend History

Source: Equitymaster

The company's special purpose vehicles distribute their surplus cash to the infrastructure investment trust (InvIT), in the form of interest and repayment, dividend or return of capital, which leads to sufficient cash flows.

Coming to its financials, its sales and net profit have grown at a compounded annual growth rate (CAGR) of 126% and 119%, respectively over the past 3 years. In FY25, its ROE was as high as 115%.

Going forward, the company's favourable location is set to play a key role as it leads to healthy revenue visibility over the next years.

The InvIT has acquired a lot of assets in recent months, so a key monitorable would be how these acquisitions contribute.

For more details, check out Vertis Infra's financial factsheet.

#2 Allcargo Logistics

Next on the list is Allcargo Logistics.

Allcargo Logistics is a leading integrated logistics company based in India, with a strong global presence spanning over 180 countries.

It specialises in supply chain management and multimodal transport operations, offering services in less-than-container load (LCL) consolidation, full container load (FCL) shipments, air freight, express logistics, and contract logistics.

At present, Allcargo Logistics has a dividend yield exceeding 9%.

In FY25, it paid a dividend of Rs 1.1 per share, and it has maintained a consistent payout policy over the years.

Allcargo Logistics Dividend History

Source: Equitymaster

Coming to its financials, the company's sales have grown at a CAGR of 17% over the past 5 years, while its profits have come down over the same period.

The company has maintained double digit return ratios, with an average ROE and ROCE of 12% and 18% during the same period.

The Allcargo group recently underwent a demerger, which is expected to help in operational synergies under the Allcargo Group.

For FY26, the company plans making inroads into China, expansion of the warehouse business in South Korea, new offices in Latin America, and stronger business growth across Germany, USA, Japan, and many other key markets.

It is also focusing on new products such as e-commerce, while reinforcing its capabilities to grow core products.

For more details, check out Allcargo's financial factsheet.

#3 Jagran Prakashan

Third on the list is Jagran Prakashan.

Jagran Prakashan is a media conglomerate with interests spanning across printing and publication of newspapers & magazines, FM radio, digital, outdoor advertising, promotional marketing, event management, and activation business.

Few of the popular brands owned or operated by Jagran Prakashan are Dainik Jagran, Mid-Day, and Radio City 91.1 FM.

Jagran has maintained a consistent dividend payout policy for the past 3 years. Its current dividend yield stands at almost 9%.

Every passing year, it has increased payouts.

Jagran Prakashan Dividend History

Source: Equitymaster

Coming to its financials, Jagran's sales and net profit have largely remained sluggish over the past 5 years.

Its five-year average RoE and RoCE were 15.2% and 18.1%, respectively.

In a move to strengthen its digital presence, its subsidiary Jagran New Media has launched a buyer application on ONDC, targeting e-commerce growth in Tier II and III cities.

Additionally, the company has migrated its digital platforms to Google Cloud, ensuring a seamless, scalable experience for its growing audience.

Going forward, Jagran is on a path to diversify revenue streams and has expanded into syndication, subscription, production house, and content-to-commerce models.

The company's production house, Rocketship Films, creates brand narratives, while its content-to-commerce and community initiatives drive brand sales through engaging content.

The company aims to become a Rs 10 billion (bn) business by 2028 through profitability and diversified revenue streams.

To know more, check out Jagran Prakashan's financial factsheet.

#4 Accelya Solutions

Fourth on the list is Accelya Solutions.

Accelya is a global leader in airline software services. It serves over 200 airlines with an open, modular platform for growth, enhances customer experience, and enables control of retailing.

The group specialises in software solutions for the airline and travel industry, focusing on revenue accounting, billing, and settlement systems.

Accelya has maintained a consistent payout policy over the years. Its current dividend yield stands at around 7%.

In FY25, it paid Rs 90 per share in dividends, compared to Rs 65 paid in the previous year.

Accelya Solutions Dividend History

Source: Equitymaster

Coming to its financials, the company's sales and net profit have grown at a CAGR of 5% and 8% over the past 5 years.

It has consistently reported high double digit return ratios, with 5-year average ROE and ROCE coming at 35% and 49% respectively.

Going forward, the global recovery in air travel industry and Accelya's shift toward recurring revenue models is expected to support growth.

The company is also anticipating a massive transformation in the industry, which aims for airlines to operate as modern retailers. This shift is expected to create substantial demand for which Accelya is actively investing in and developing products for.

The company is expected to benefit from operating leverage due to its heavy investments in Intellectual Property (IP) and products.

#5 Castrol

Last on the list is Castrol.

Castrol holds a leading position in the Indian lubricants market and is recognised the world's third-largest, accounting for 10% of global demand.

The company has over the years expanded its portfolio into auto care products, such as chain cleaners and anti-rust sprays.

Beyond mobility, it focuses across diverse industries like marine, steel, mining, aerospace, cement, wind, railways, and machinery manufacturing, delivering tailored solutions and specialised industrial lubricants.

Castrol's current dividend yield stands at around 5%. It's cash-rich and net debt-free, and on an average, paid over 70% of its earnings in dividends.

In FY25, it paid the highest dividend per share of Rs 13. It has maintained a growing trend, as is visible in the table below.

Castrol India Dividend History

Source: Equitymaster

Coming to its financials, Castrol's sales and net profit have grown at a CAGR of 7% and 2%, over the past 5 years.

It has maintained high double-digit ROE and ROCE of 44% and 60% during the same period.

Looking ahead, the overall market for Castrol's portfolio is anticipated to grow in the range of 4-5% over the next 2 to 3 years.

Meanwhile, India's market for cooling solutions (for data centers) is expected to grow at around 20%. While currently a negligible part of Castrol's P&L, this segment is anticipated to become significant and profitable in the next 10 years.

Castrol intends to play aggressively in this space, leveraging its technology leadership.

Conclusion

In a volatile market, high dividend yield stocks come in to rescue and give your portfolio the much-needed relief and a sense of comfort.

They're about turning your portfolio into a source of real, ongoing income. That's the difference between chasing returns and building something sustainable.

But a word of caution: not all high-yield stocks are safe and not all safe stocks will keep paying.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

Disclaimer: This article is for education purposes only. It is not a recommendation and should not be treated as such. Learn more about our recommendation services here...