Dividend-paying stocks continue to attract investors seeking regular income alongside long-term portfolio stability. In May 2026, several large-cap and fundamentally established companies across sectors such as metals, energy, FMCG, banking and information technology are offering relatively strong dividend yields.
Companies including Castrol India, Coal India, REC, ITC and Tata Consultancy Services feature among the notable dividend-paying stocks this month. Alongside dividend yield, metrics such as return on equity (ROE), return on capital employed (ROCE), debt-to-equity ratio and net profit margin can also help investors evaluate financial strength and sustainability.
| Name | Dividend Yield (%) | Market Cap (₹ Cr) | ROE (%) |
| Castrol India Ltd | 7.17 | 18,286.89 | 45.47 |
| Coal India Ltd | 5.86 | 281,266.92 | 38.53 |
| Chennai Petroleum Corporation Ltd | 5.76 | 16,036.27 | 2.44 |
| Wipro Ltd | 5.55 | 207,457.95 | 16.71 |
| REC Ltd | 5.16 | 94,638.07 | 21.5 |
| Central Bank of India Ltd | 4.93 | 33,046.67 | 11.33 |
| ITC Ltd | 4.66 | 385,218.50 | 47.83 |
| Tata Consultancy Services Ltd | 4.59 | 866,314.88 | 48.19 |
| HCL Technologies Ltd | 4.52 | 324,259.08 | 25.21 |
| Vedanta Ltd | 40.62 | 115,757.85 | 31.28 |
Note: The data above is based on the latest available figures for May 11, 2026 and is sorted based on dividend yield.
Castrol India operates in the lubricants and industrial oils segment and continues to feature among dividend-paying companies with relatively stable cash flows. The company maintains a low debt profile and strong profitability metrics.
Coal India remains one of the major dividend-paying public sector companies in India. Supported by strong operational cash generation and its position in the coal mining sector, the company continues to attract income-focused investors.
REC Limited, operating in the specialised finance segment, has historically maintained regular dividend distributions. Its earnings profile and financing operations continue to support shareholder payouts.
ITC continues to remain a prominent dividend-paying FMCG company with diversified operations across tobacco, hotels, paperboards and agri-business segments.
Tata Consultancy Services remains among the major IT companies offering regular dividend payouts. Its strong profitability and low leverage profile continue to support consistent shareholder returns.
The table below lists selected dividend-paying stocks arranged in ascending order of debt-to-equity ratio.
| Name | Debt to Equity |
| Central Bank of India Ltd | 0 |
| ITC Ltd | 0 |
| Castrol India Ltd | 0.03 |
| Coal India Ltd | 0.09 |
| HCL Technologies Ltd | 0.09 |
| Tata Consultancy Services Ltd | 0.1 |
| Wipro Ltd | 0.23 |
| Chennai Petroleum Corporation Ltd | 0.38 |
| Vedanta Ltd | 1.7 |
| REC Ltd | 6.33 |
Note: The data above is based on the latest available figures for May 11, 2026 and is sorted based on debt-to-equity ratio.
The following table presents dividend-paying stocks sorted in descending order of net profit margin.
| Name | Net Profit Margin |
| ITC Ltd | 37.37 |
| REC Ltd | 27.35 |
| Vedanta Ltd | 18.78 |
| Tata Consultancy Services Ltd | 18.13 |
| Coal India Ltd | 17.23 |
| Castrol India Ltd | 16.41 |
| Wipro Ltd | 13.67 |
| HCL Technologies Ltd | 12.64 |
| Central Bank of India Ltd | 10.51 |
| Chennai Petroleum Corporation Ltd | 4.87 |
Note: The data above is based on the latest available figures for May 11, 2026 and is sorted based on net profit margin.
Dividend yield is one of several indicators investors may use while evaluating companies for long-term income potential. However, other financial indicators such as profitability, debt levels, cash flows and capital efficiency also play an important role.
Companies with sustainable earnings, manageable debt and consistent dividend policies may offer relatively greater stability during changing market conditions.
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Dividend-paying stocks such as Castrol India, Coal India, REC, ITC and Tata Consultancy Services continue to feature among companies offering regular shareholder payouts in May 2026. Investors may evaluate dividend yield alongside broader financial metrics and business fundamentals before making investment decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
Published on: May 11, 2026, 4:20 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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