According to reports from Business Standard, the total dividend payout by listed companies in India has grown at a compound annual growth rate (CAGR) of 12% over the last five years. Companies paid approximately ₹5.06 trillion to shareholders in FY26, up from ₹2.87 trillion in FY21. Despite this growth, the dividend yield remains modest at 1.3% in FY26, though many high-dividend paying companies currently offer yields of 4% or higher. This translates to potential annual dividend income of ₹5,000 for an investment of ₹1 lakh in the first year itself.
As reported by Business Standard, Central Bank of India offers one of the highest dividend yields in the banking sector at 5.5% currently. The bank paid an equity dividend worth ₹1,629.3 crore for FY26, representing a nearly 10x increase from ₹170.17 crore in FY25. The bank resumed dividend payouts in FY25 after a nine-year dividend gap. Over the last three years, the bank's gross interest income and net profit grew at a CAGR of 12.1% and 38.6% respectively. The stock trades at historically low valuations with a trailing P/E of 6.6x and price to book value of 0.75.
According to UBS Asset Management's annual Reserve Manager Survey, a majority of central bank reserve managers now view stagflation as the most likely economic scenario over the next five years. The survey gathered insights from around 30 leading central banks at UBS's Reserve Management Seminar in Wolfsberg, Switzerland, finding 52% of respondents consider stagflation the most likely five-year scenario, up from 39% in the previous year. 82% of respondents cited rising U.S. rates and inflation as the main concern for foreign exchange reserve investment, while 79% believe "we have entered a period of higher inflation that will persist for a longer period of time."
According to Business Standard, the 10 high-dividend yield stocks from the BSE500 universe offer dividend yields ranging from 3.5% to 6.1%, with an average yield of 4.9%. These companies paid dividends worth ₹1.12 trillion to investors in FY26, accounting for 56.3% of their adjusted net profit. The combined dividend payout by these companies grew 13% while their adjusted net profit rose 5% in FY26. Notable performers include NMDC with a 4.1% yield and ₹3,077 crore dividend payout (up 22.8% Y-o-Y), and Coal India offering a 6.1% yield despite earnings growth challenges.
As reported by Business Standard, the current slowdown in dividend payouts over the last two years, after a post-Covid dividend boom, creates attractive buying opportunities. Many high-paying companies are now conserving cash for capital expenditure or rainy-day funds. The 10 selected stocks demonstrate strong fundamentals including revenue and earnings growth, higher return on equity, low equity valuations, and strong balance sheets. These characteristics make them suitable for investors seeking both steady income and potential capital appreciation, with dividend yields that compare favorably with current rental yields on real estate or bank fixed deposits.
