Five Indian Stocks with Highest Dividend Yield: Vedanta Leads at 12.9%

Investors looking for income-generating equities have several options among India's top dividend-yielding stocks. According to data compiled by ETWealth (as of July 29, 2026), five companies stand out for offering the highest dividend yields in the Indian market. The list spans sectors from natural resources and logistics to lubricants and information technology.

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. It is a widely used metric among income-focused investors seeking regular returns from their equity holdings. Because yield moves inversely with share price, elevated yields can sometimes reflect recent stock price declines rather than growing payouts, making it important to assess payout sustainability alongside the headline number.

Vedanta

Vedanta Limited leads the list with a dividend yield of approximately 12.9%. The diversified natural resources company—whose operations span zinc, aluminium, iron ore, oil and gas, and power—is held by around 76 mutual fund schemes. Value Research has assigned the stock a four-star rating. Vedanta's outsized yield reflects its practice of distributing a large share of commodity-cycle profits to shareholders, a pattern consistent with the broader metals and mining sector's high-payout profile during periods of elevated commodity prices.

Gujarat Pipavav Port

Gujarat Pipavav Port, which operates India's first private port located in the Amreli district of Gujarat, reported a dividend yield of approximately 6.9%. The stock is included in the portfolios of around 9 mutual fund schemes and carries a five-star rating from Value Research, making it the highest-rated stock on this list. Port operators typically benefit from stable, long-term concession agreements and asset-light expansion potential, which can support consistent cash distribution to shareholders.

Castrol India

Castrol India, a leading manufacturer and marketer of automotive and industrial lubricants and a subsidiary of BP's Castrol division, recorded a dividend yield of approximately 4.7%. Approximately 13 mutual fund schemes hold the stock in their portfolios, and Value Research has given it a four-star rating. Mature consumer-facing companies with limited capital expenditure needs often maintain high dividend payout ratios, and Castrol India's profile fits that pattern.

Tata Consultancy Services (TCS)

TCS, India's largest IT services company by revenue and a subsidiary of the Tata Group, had a dividend yield of approximately 4.5%. The stock is widely held, featuring in approximately 156 mutual fund portfolios, and carries a four-star Value Research rating. Large-cap Indian IT companies have historically prioritized shareholder returns through a combination of regular dividends and share buybacks, supported by strong free cash flow generation from their global services businesses.

Infosys

Infosys, another major Indian IT services company headquartered in Bengaluru, rounds out the list with a dividend yield of approximately 4.2%. The stock has the broadest mutual fund ownership among the five names, with approximately 244 schemes holding it in their portfolios. Value Research has assigned Infosys a four-star rating. The presence of both TCS and Infosys on this list underscores the IT sector's established role as a dependable dividend-paying corner of the Indian equity market.

Source: Economic Times Markets