Indian investors are increasingly focusing on dividend-paying stocks to secure steady income amidst ongoing market volatility and global uncertainties in February 2026. These stocks provide a stable return, attracting those seeking consistent cash flow. Market data for 2026 indicates that the top 10 dividend-paying stocks mostly come from heavyweight companies in the metals and mining sectors. These companies offer dividend yields up to 6.64%, drawing significant interest from income-focused investors.[ndtvprofit+1]
Leading Dividend Payers
Vedanta Limited leads the list of high dividend-paying companies. It offers a strong one-year dividend yield of 6.64% as of February 6, 2026. The diversified natural resources conglomerate has a market capitalization of Rs 2.6 lakh crore. Vedanta shares have seen significant gains, rising 7.21% in the past month, 53.28% over six months, and nearly 51% in the last year. The company is known for its aggressive dividend policy, supported by strong cash flows from its metals, oil and gas, and mining operations.[ndtvprofit+1]
Coal India Limited follows closely, providing a 6.14% dividend yield based on the last year's performance as of February 6, 2026. The state-owned enterprise commands a market capitalization exceeding Rs 2.66 lakh crore. Its shares have advanced 1.37% in the past month and over 14% in the last six months, with a 13.06% rally over the past year. Coal India, the world's largest coal producer, maintains a conservative capital structure with a low debt-to-equity ratio of 0.13x, supporting its consistent high dividend payouts.[ndtvprofit+1]
Hindustan Zinc, a subsidiary of Vedanta, also features prominently with a one-year dividend yield of 4.75% as of February 6, 2026. The company's market capitalization stands at Rs 2.56 lakh crore. Shares of the leading zinc producer have gained 6.19% in the last month and 43.4% over the past six months, increasing almost 31% in the last year.[ndtvprofit]
Other Attractive Income Stocks
REC Limited has offered an annual yield of 4.71% as of February 6, 2026. This company, with a market capitalization of Rs 98,113.93 crore, is recognized for its regular and frequent dividend distributions, often declaring dividends multiple times within a year.[ndtvprofit+1]
Gail (India) Limited recorded a 4.65% dividend yield, holding a market capitalization of Rs 1,07,305.63 crore.[ndtvprofit]
ITC Limited, a major player in the fast-moving consumer goods (FMCG) sector, provided investors with a 4.62% dividend yield as of February 6, 2026. The company's market capitalization is Rs 4,08,891.40 crore. ITC pays dividends semi-annually, with the next payment scheduled for February 26, 2026. The latest dividend per share was ₹6.5, with an ex-date of February 4, 2026. ITC is considered a defensive FMCG stock with a long history of steady dividend payouts.
Oil and Natural Gas Corporation (ONGC) delivered an annual yield of 4.55% as of February 6, 2026. Its market capitalization reached Rs 3,37,654.69 crore. ONGC shares have generated returns of 11.96% over the last month. The company consistently provides dividends, supported by its strong position in upstream oil and gas exploration.[ndtvprofit+2]
UTI Asset Management Company showed an annual yield of 4.47% and has a market capitalization of Rs 13,687.08 crore.[ndtvprofit+1]
Tata Consultancy Services (TCS), a significant IT services firm, offered a 4.21% yield. It possesses a substantial market capitalization of Rs 10,63,826.27 crore.[ndtvprofit]
Indraprastha Gas Limited is also on the list of top dividend-paying stocks to watch out for in February 2026.[ndtvprofit]
Why Investors Choose Dividends[ndtvprofit]
Dividend-paying stocks are gaining renewed attention from Indian investors. Market volatility and geopolitical uncertainties make these stocks appealing for a steady income stream. Dhwani Patel, an expert, stated that dividend-focused investing is especially relevant for investors seeking consistent income without selling shares, lower portfolio volatility, and long-term wealth compounding through reinvested dividends. Companies with strong balance sheets, consistent cash flows, and disciplined capital allocation often emerge as reliable income generators.[finversify]
Key Considerations for Dividend Investing[fi]
Investors should look beyond just high dividend yields. It is crucial to evaluate the sustainability of a company's profits, its payout ratio, and overall business stability. Chasing extremely high dividend yields without checking these factors is a common mistake. A sustainable dividend yield of 4-6% is generally healthier than an unstable 20% yield. Investors should also analyze a company's dividend history, earnings, cash flow strength, and debt levels to ensure the dividend payments are reliable and sustainable over time.[finversify]
