High-yield stocks are important for investing because they provide regular income through dividends in addition to any potential price growth. These stocks can help investors earn steady returns, which is especially useful during uncertain or volatile markets when stock prices fluctuate.
Here are some stocks known for their high dividend yields:
1. Coal India Limited
Coal India Ltd primarily focuses on coal mining and production, and also manages coal washeries. Its main customers are in the power and steel industries, while other sectors, such as cement and fertilizer,s also utilize its products.
The company has a market capitalization of Rs.2,42,934.75 crore, and closed at Rs.394.20,up by 0.20 percent from the previous close of Rs.393.40. For the first quarter of the financial year 2026, the company saw its revenue rise to Rs.35,842.19 crore, up from Rs.33,170.13 crore in the same quarter of the previous year. However, its net profit dropped to Rs.8,734.17 crore from Rs.10,943.55 crore in the first quarter of the financial year 2025.
Return on equity is 38.9 percent, and return on capital employed is 48 percent. Its price-to-earnings ratio is 7.21, which is lower than the industry average of 11.20, suggesting that the stock is relatively inexpensive compared to its competitors. The company has a dividend yield of 6.83.
2. Hero Motocorp Limited
Hero MotoCorp Limited is the world’s biggest maker of motorcycles and scooters. The company’s main business is making and selling two-wheelers, along with their spare parts and maintenance services.
The company has a market capitalization of Rs.1,06.278.05 crore, and closed at Rs.5,312.10,up by 0.21 percent from the previous close of Rs.5,301.05. For the first quarter of the financial year 2026, the company saw its revenue drop to Rs.9,727.75 crore, down from Rs.10,210.79 crore in the same quarter of the previous year. However, its net profit surged to Rs.1,705.65 crore from Rs.1.032.21 crore in the first quarter of the financial year 2025.
Return on equity is 23.1 percent, and return on capital employed is 30.3 percent. Its price-to-earnings ratio is 21.55, which is lower than the industry average of 34.45, suggesting that the stock is relatively inexpensive compared to its competitors. The company has a dividend yield of 3.04.
3. ITC Limited
ITC is the biggest cigarette producer and seller in the country. Currently, the company works in four main areas: FMCG Cigarettes, other FMCG products, Paperboards, Paper & Packaging, and Agriculture.
The company has a market capitalization of Rs.5,18,102.78 crore, and closed at Rs.413.60, down by 0.34 percent from the previous close of Rs.415. For the first quarter of the financial year 2026, the company saw its revenue rise to Rs.23,129.35 crore, from Rs.19,239.05 crore in the same quarter of the previous year. However, its net profit rose to Rs.5,343.41 crore from Rs.5,176.99 crore in the first quarter of the financial year 2025.
Return on equity is 27.3 percent, and return on capital employed is 36.8 percent. Its price-to-earnings ratio is 25.66, which is lower than the industry average of 51.49, suggesting that the stock is relatively inexpensive compared to its competitors. The company has a dividend yield of 3.50.
Written by Jhanavi Sivakumar
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