ITC, Coal India or Hindustan Zinc: Which stock delivered higher FY26 dividend and return on 500 shares

ITC shares declined nearly 2% intraday on Friday, May 22, reacting to its quarterly result announcement. ITC Q4 net profit stood at ₹5113 crore, down 73.8% YoY compared to ₹19,562 crore net profit reported in the same quarter last year, which was boosted by one-time exceptional gain of ₹15,145 crore from the demerger of its hotels business.

If the impact of one-time gain is not considered, ITC Q4 net profit has rose 4.8% YoY. Meanwhile, its revenue from operations declined 7% YoY to ₹16,050 crore from ₹17,249 crore.

Along with the result, ITC also announced a final dividend of ₹8 per share for its shareholders. The company had earlier declared an interim dividend of ₹6.5 per share in January 2026. ITC is among the high dividend-paying stocks with a dividend yield of around 4.7%.

ITC has maintained a healthy dividend payout policy and has often distributed a large portion of its profits to shareholders through interim and final dividends. The company can pay a consistent dividend supported by its cash-generating cigarette business and low debt levels.

Consistent dividend-paying stocks are important for investors, especially in a volatile market, as these stocks provide investors with a steady cash flow even when stock prices remain under pressure. This regular income can help reduce the overall impact of market volatility on portfolio returns. Coal India and other PSU companies are known for strong dividend payouts.

Among these high dividend-paying stocks, Coal India and Hindustan Zinc have paid a dividend of ₹21 per share each in FY26 and have also given decent stock returns to investors.

Meanwhile, ITC has paid a total dividend of ₹14.5 per share in FY26. An investor holding 500 shares earned ₹7,250 as annual dividend income, which helped cushion part of the downside in the stock.

ITC stock declined nearly 30% in the last fiscal year after a major government tax overhaul on tobacco products, including new excise duties and a rise in effective Goods and Services Tax (GST) on cigarettes from 28% to 40%. As a result, investors turned cautious, and a stock sell-off happened amid concerns that the increased tax burden would compress ITC's profit margins.

Maharatna PSU Coal India delivered a strong combination of dividend income and capital appreciation in FY26. The company declared a total dividend of ₹21 per share, while its stock return was 13.2%, which was the highest among the three companies.

An investor with 500 shares of Coal India earned ₹10,500 in dividend income during FY26. Along with dividends, the stock price gained 13.2%, increasing the value of 500 shares from ₹1.98 lakh to ₹2.25 lakh. Including dividends, the total return rose to 18.5% or ₹2.35 lakh.

Hindustan Zinc also rewarded its shareholders through a high dividend payout in FY26. The company announced a total dividend of ₹21 per share, generating dividend income of ₹10,500 on 500 shares held. The value of 500 shares increased from ₹2.31 lakh to ₹2.51 lakh, while total returns stood at 13.1%.

High dividend-paying stocks play an important role in long-term wealth creation for investors. Companies with consistent dividend payouts generally have stable cash flows, are financially strong, and have mature business models. Hence, investors seeking a consistent dividend prefer such stocks.

However, many high-dividend stocks are mature businesses and in general have limited future growth opportunities. As a result, their stock prices may not rise as fast as high-growth companies during a period of strong market rise.

Disclaimer:

The stock discussed in this article is only for educational purposes and not a buy or sell recommendation. Investors are advised to conduct their own analysis and risk due diligence before trading and investing in the stock market. Investments in the securities market are subject to market risk. Read all the related documents carefully before investing.