Up 15% in 2026 - This 7.1% Yield Stock is Turning Into a Silent Compounder

Dividend History of Coal India

Coal India has been continuously paying dividends since 2011. The first dividend it paid was an interim dividend of Rs 3.5 per share during February 2011.

Between FY21 and FY25, it has paid an average dividend per share of Rs 21, while the average dividend payout ratio for the period stood at 54.67%.

The dividend yield has moderated over the years, from 12.3% in FY21 to around 6.7% in FY25; however, the dividend per share has increased over the years from Rs 16 to Rs 26.5 during the period.

This indicates how the Maharatna company has been following a stable dividend policy. In February 2026, the company announced its 3rd interim dividend for FY26 at Rs 5.5 per share, which makes the total interim dividend for FY26 Rs 21.25 per share.

And it's not just dividends... Coal India has been offering stable returns through capital appreciation as well. Since the beginning of 2026, Coal India's share price has gained 13.78% while the Nifty 50 has tanked 13.5% during the period.

Coal India Share Price - 1 Year

In the past year, in which the Nifty 50 fell around 3.4%, Coal India's stock price is up 12.28%.

In the past month, the stock has gained around 6.85%, contrary to overall market sentiment.

The current geopolitical situation is actually playing in favour of the company. Due to the shortage of oil and other fuels, coal, which the main source of energy in the country, has become more important.

With the LPG gas cylinder shortages, people are shifting to old cooking methods using coal, and even towards electronic gadgets such as induction ovens, and others, which can further fuel the demand for power.

Having said that, the stock has been a silent compounder for years and not just recently.

Keeping aside its dividend history, even if you look at its five-year growth trajectory, the stock has given an absolute return of 236.56% in the past five years, while the Nifty 50 is up 52.25% during the same period.

Major Expansion in 2026

Coal India is expanding with its 50:50 Joint Venture with DVC to develop a brownfield thermal power project at Chandrapura in Jharkhand. This will increase the production capacity of the company by 1,600 MW.

Furthermore, the company has secured a Rare Earth Element (REE) Block at Kawalpur in Maharashtra to venture into the critical mineral business as well. Coal India is also collaborating with Hindustan Copper Ltd for other critical minerals and copper production.

Apart from this, the company is exploring renewable energy projects as well.

Financial Performance

In Q3 FY26, sales declined to Rs 349,242 million (m), from Rs 368,586 m in the corresponding quarter last year. Profit after tax for the period also declined from Rs 84,202 m to Rs 68,772 m.

Final Thoughts

Even though the sales and profit declined for the quarter, the company didn't stop distributing profits via dividends and didn't even stop the stock from surging to new highs.

The strategic importance of the company in the Indian economy that helps it grow even amid all the challenges.

Happy investing.

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