Investors seek dividend-paying stocks for their reliable income stream, financial stability, and potential for long-term growth through compounding.
These stocks often come from mature, cash-rich companies that prioritise shareholder returns. They provide a buffer during market downturns compared to non-dividend growth stocks.
Here are 3 stocks that have the potential for higher dividend payouts in 2026. These companies have a good track record of dividend payments, good cashflows and stable business operations.
However, the editorial is not a stock recommendation or any kind of assurance on dividend payouts.
#1 Coal India
Coal India is the largest government-owned coal producer in the world, headquartered in Kolkata.
It makes up 80-85% of India’s total coal production and functions as a public sector enterprise under the Ministry of Coal, Government of India.
Coal India Dividend Payout History
| FY23 | FY24 | FY25 | |
| Face value (Rs) | 10 | 10 | 10 |
| Dividend per share | 24.25 | 25.50 | 26.5 |
| Dividend Payout Ratio % | 47.1 | 42.1 | 46.3 |
Source: Equitymaster
Coal India has a healthy track record of dividend payments. The dividend per share has gradually increased over the years. The company has a strong cash balance and a good dividend payout ratio.
On the financial front, the company saw revenues in Q2 FY26 dropping to Rs 301,867 vs Rs 311,819 m YoY. The net profits of Coal India plunged to Rs 40,534 m from Rs 61,377 m YoY.
Going forward, Coal India has established long-term fuel supply contracts that cover 629 m tonnes annually for the power industry. These contracts provide the company with consistent offtake from power utilities and enable long-range planning for production and logistics.
With an 8% annual growth forecast starting in FY25, Coal India’s roadmap aims for 1.23 bn tonnes by FY35. The business is accelerating project clearances for FMC implementation and has obtained priority access to railway infrastructure.
In addition to opening up new revenue streams for Coal India, the diversification into coal gas, coal bed methane (CBM), and renewable energy is in line with new policy incentives.
.#2 NTPC
Next on our list is NTPC.
The company is India’s largest energy conglomerate. It has established itself as a dominant power producer with presence in the entire value chain of the power generation business.
NTPC Dividend Payout History
| FY23 | FY24 | FY25 | |
| Face value (Rs) | 10 | 10 | 10 |
| Unadjusted dividend per share(Rs) | 7.25 | 7.75 | 8.35 |
| Dividend Payout Ratio (%) | 41.1 | 35.2 | 33.8 |
Source: Equitymaster
NTPC has over the years gradually scaled-up its dividend payments. The dividend per share has increased from Rs 7.25 per share in FY23 to Rs 8.35 per share in FY25. Looking at the strong cash balance despite expansions, there is a possibility of enhanced dividends.
On the financial front, Q2 FY26 revenues at NTPC were Rs 447,858 m, almost flat when compared to Rs 447,061 m in the same period last year.
The company’s net profits increased to 29,681 m from Rs 26,543 m YoY.
Moving ahead, NTPC is now looking at a gradual transition by adding 500 GW of installed capacity from non-fossil fuel sources by 2030.
At the center of this transition is a roadmap to install 60 GW of renewable energy capacity by 2032, a clear shift from conventional fuels to clean alternatives.
In addition to large-scale solar and wind, NTPC is building India’s first hydrogen hub and has already started a number of green hydrogen pilot projects to enable clean mobility and decarbonise those industries where the process is difficult.
These initiatives are in line with NTPC’s strategic goal of developing a full-spectrum clean energy ecosystem, which goes beyond generation.
#3 Polycab India
Polycab India is India’s top manufacturer of wires and cables and a fast-growing company in the fast moving electrical foods (FMEG) sector.
The company has a network of 28 state-of-the-art manufacturing facilities, including two strategic joint ventures with Techno and Trafigura.
These facilities are strategically located across the states of Gujarat, Maharashtra, Uttarakhand, and the union territory of Daman and Diu.
Polycab India Dividend Payout History
| FY23 | FY24 | FY25 | |
| Face value (Rs) | 10 | 10 | 10 |
| Dividend per share unadjusted (Rs) | 20 | 30 | 35 |
| Dividend Payout Ratio (%) | 23.3 | 25.0 | 25.7 |
Source: Equitymaster
The company has over the years enhanced its dividend payout ratio as well as dividend per share.
On the financial front, Polycab India saw revenues surging to Rs 64,772 m in Q2 FY26 from Rs 54,984 YoY. The net profits jumped to Rs 6,930 m from Rs 4,452 m, up 55%.
Polycab India expects a 27% sales CAGR by 2030, with strong demand driving growth across FMEG, wires, and cables. The company plans to invest Rs 80 bn in capacity expansion.
Should You Consider Dividend Stocks?
Dividend stocks, offers stability through strong financials, and consistent dividends, making them suitable for risk-averse investors seeking regular income.
However, at times, even good dividend paying stocks, carry inherent risks including market volatility, regulatory changes, and economic uncertainty that can affect stability.
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.
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…
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