5 Best Dividend Stocks in India to Watch in 2026

#2 Vedanta

Next on the list is Vedanta.

As of 14 February 2026, Vedanta has a dividend yield of 6.46%.

Since 2011, Vedanta has declared 48 dividends, reflecting its consistent payout track record.

Over the past five years, Vedanta has maintained an average dividend payout ratio of 116.5%. And the dividend per share has averaged Rs 45.

Vedanta's Dividend History (2021-25)

For FY26, the company has declared two interim dividends, amounting to a total payout of Rs 23.

Vedanta is a leading global natural resources conglomerate, focusing on key sectors such as aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductors, and glass. Its operations and assets span across multiple regions, including India, South Africa, Namibia, and Liberia.

In mid-December 2025, the Mumbai bench of National Company Law Tribunal (NCLT) approved the Vedanta demerger plan. This was the big development that investors were waiting for.

With the NCLT approval, Vedanta has begun the execution phase of the demerger that will produce 5 separate listed companies.

For more details, see the Vedanta company fact sheet and quarterly results.

#3 REC

Next on the list is REC.

As of 14 February 2026, REC has a dividend yield of 5.19%.

Since 2008, REC has declared a total of 45 dividends, reflecting its consistent payout track record.

Over the past five years, REC has maintained an average dividend payout ratio of 29.8%. And the dividend per share has averaged Rs 15.

REC's Dividend History (2021-25)

For FY26, the company has declared three interim dividends, amounting to a total payout of Rs 13.8.

REC Limited has significantly broadened its financing mandate over time, expanding beyond its traditional role to cover the entire power-infrastructure value chain, including generation, transmission, distribution and renewable energy.

Its portfolio also extends to emerging technologies such as electric vehicles, battery storage, and green hydrogen.

Going forward, REC intends to increase its green project loan portfolio.

For more details, see the REC financial fact sheet and REC share price.

#4 Hindustan Zinc

Next on the list is Hindustan Zinc.

As of 14 February 2026, Hindustan Zinc has a dividend yield of 4.89%.

Since 2001, Hindustan Zinc has declared 44 dividends, highlighting its long-standing consistency in shareholder payouts.

Over the past five years, Vedanta has maintained an average dividend payout ratio of 136.9%. And the dividend per share has averaged Rs 31.

Hindustan Zinc's Dividend History (2021-25)

For FY26, the company has declared one interim dividend of Rs 10.

Hindustan Zinc is a leader in the critical minerals and energy transition space, backed by scale, cost leadership, strong market share, and a solid financial foundation.

The company is the world's largest integrated zinc producer and ranks among the top five silver producers globally, making it India's only listed integrated precious metals company.

For more details, see the HINDUSTAN ZINC company fact sheet and quarterly results.

#5 Gujarat Pipavav Port

Last on the list is Gujarat Pipavav Port.

As of 14 February 2026, Gujarat Pipavav Port has a dividend yield of 4.62%.

Since 2016, Gujarat Pipavav Port has declared 20 dividends.

Over the past five years, Vedanta has maintained an average dividend payout ratio of 98.6%. And the dividend per share has averaged Rs 6.

Gujarat Pipavav Port's Dividend History (2021-25)

For FY26, the company has declared one interim dividend of Rs 5.4.

Gujarat Pipavav Port is India's first private sector port located on the southwest coast of Gujarat near Bhavnagar.

The port is strategically located on a key international maritime trade route, linking India with the US, Europe, Africa, and the Middle East on one side, and the Far East on the other.

Gujarat Pipavav Port (GPPL) plans a Rs 170 billion (bn) expansion to upgrade infrastructure, targeting increased capacity for containers, liquid cargo, and Ro-Ro (roll-on/roll-off) by 2033.

To know more, check out Gujarat Pipavav Port's financial factsheet and latest quarterly result.

Conclusion

High-dividend stocks can provide a steady income stream, especially during volatile or sideways markets. They often belong to mature, cash-generating businesses with established operations, which can offer relative downside protection.

For long-term investors, consistent dividends also help smooth portfolio returns and reduce reliance on capital gains alone.

However, relying solely on dividend yield can be misleading. An unusually high yield may be the result of a falling share price, signalling underlying business stress.

In some cases, dividends may be unsustainable, with payouts exceeding earnings or cash flows. Additionally, high-dividend companies may offer limited growth potential, which can cap long-term wealth creation.

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 information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...