Dividend Stocks: Investors looking to generate regular income from the stock market may want to look beyond share price appreciation and consider dividend-paying companies. Several listed companies in India have offered attractive dividend yields over the past 12 months, with some small-cap stocks featuring significantly higher yields than their large-cap counterparts.
According to Axis Securities' Top Dividend Yield Stocks report dated October 26, 2026, PTC India topped the small-cap list with a dividend yield of 24%, followed by CESC at 10%. Among large-cap stocks, Vedanta and Coal India recorded dividend yields of 7% each, while Hindustan Petroleum Corporation (HPCL) led the public sector undertaking (PSU) category with a yield of 7%.
Dividends are payments that companies distribute to shareholders from their profits or accumulated reserves, subject to applicable rules and corporate decisions. They can provide investors with an additional source of income alongside any potential appreciation in share prices.
Dividend yield measures the annual dividend paid per share as a percentage of its current market price. For example, if a stock trades at ₹100 and pays an annual dividend of ₹5 per share, its dividend yield is 5%.
PTC India topped Axis Securities' small-cap dividend yield list, with a reported yield of 24%. The company had a market capitalisation of ₹3,960 crore and a share price of ₹134. It paid dividends of ₹31.5 per share over the preceding 12 months.