February 14, 2026
India’s benchmark indices have started 2026 on a weak footing. In just one and a half months, the Sensex and Nifty have fallen in value by more than 3%.
The recent correction has been driven by multiple factors: an AI-induced sell-off in IT stocks, a Budget that failed to spark a sustained rally, rising valuations, a volatile rupee and continued uncertainty surrounding the India-US trade deal.
As a result, investors are becoming increasingly cautious about capital allocation. The outsized gains of recent years may be more difficult to replicate in the current market cycle.
Against this background, dividend-paying stocks are regaining popularity.
These stocks provide a steady income stream even as stock prices remain volatile.
When chosen carefully, they often represent established, cash-generating companies with defensive characteristics that can navigate uncertain conditions more effectively.
In this editorial, we highlight five of the best dividend stocks in India.
Selection criteria:
- Stock universe: Nifty 500
- Dividend yield: high
- Market capitalization: Sorted from high to low
#1 Coal India
The first on the list is Coal India.
As of February 14, 2026, Coal India tops the list with a dividend yield of 6.4%.
Since 2011, Coal India has paid 33 dividends.
Over the past five years, Vedanta has maintained an average dividend payout ratio of 54.6%. And the dividend per share averaged Rs 21.
Coal India’s Dividend History (2021-2025)
| March 21 | March 22 | March 23 | March 24 | March 25 | |
|---|---|---|---|---|---|
| Dividend per share (Adjusted) (Rs) | 16 | 17 | 24.2 | 25.5 | 26.5 |
| Dividend payout ratio (%) | 77.6 | 60.3 | 47.1 | 42.1 | 46.3 |
| Dividend yield (%) | 12.3 | 9.3 | 11.4 | 5.9 | 6.7 |
Coal India Limited (CIL) is a state-owned coal mining company founded in November 1975.
From a modest production of 79 million tonnes in the year of inception, CIL has grown into the world’s largest coal producer.
The company’s mining operations are spread across eight Indian states. In FY25, Coal India contributed around 74% of India’s total coal production, underscoring India’s dominant position in the domestic coal mining sector.
Going forward, Coal India plans to expand renewable energy deployment beyond 3 GW to accelerate its roadmap to net zero emissions.
For more details, see COAL INDIA corporate fact sheet and quarterly results.
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