
Stocks to buy: Raja Venkatraman recommends two high-yield dividend stocks for 24 February
Subscribe to enjoy similar stories. Indian stocks with high dividend yields such as Vedanta and Coal India have acted as defensive anchors during the market volatility of 2025-2026. Despite global uncertainty and shifting domestic policies, these companies provided 4-6% yields, using their strong cash flows to protect investor capital from broader market declines.
Buy above ₹328, stop ₹311, target ₹375 (multiday) Buy above ₹684, stop ₹650, target ₹765 (multiday) In 2026, India’s dividend landscape remains anchored by mature sectors like banking, metals, FMCG, and energy. Leading Nifty 500 companies maintain strong payouts backed by low debt and competitive Return on Equity (ROE)—with Vedanta at 31.3% and Hindustan Zinc reaching a standout 72.6%. A strategic shift is underway as firms pivot toward energy-transition metals like zinc and aluminum to meet sustainability goals.
Shareholder-friendly policies are now standard, with payout ratios often exceeding 80% following the post-pandemic cash unwind. While FMCG giants like ITC (4.39% yield) and banks like SBI (1.31%) offer a blend of stability and resilience, general yields of 2-6% across the board continue to outperform fixed deposits in this inflationary environment. FY26 brought sharp volatility: Nifty swings of 15-20%, Q2 FY26 profit slumps (Coal India down to ₹40.5B YoY), and 1Y losses for IT/FMCG (TCS -28%, ITC -19%).
Yet dividend aristocrats shone. Vedanta surged 53% in 1Y despite metals volatility, buoyed by 82.8% FY25 payout. Coal India and ONGC logged 5Y CAGRs over 27%, with yields offsetting price dips.
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