Vedanta, BPCL, Hindustan Zinc among high dividend-paying stocks delivering up to 70% returns in past one year

Indian investors looking for regular passive income from the stock market often keep a close eye on high dividend-paying stocks like Vedanta, Coal India, Hindustan Zinc, BPCL, ONGC and others.

Public Sector Undertaking (PSU) stocks are frontrunners in paying high dividends to their shareholders. PSU companies are mandated to pay an annual dividend of 30% of net profit or 4% of net worth by DIPAM (Department of Investment and Public Asset Management). As a result, PSU companies which has majority stakeholder as the government often give high dividends, providing a steady revenue stream to the government to help manage its fiscal budget targets.

Some of the private companies like Vedanta, Hindustan Zinc and Real Estate Investment Trust (REIT) like Mindspace Business Parks have also given good dividend payouts to their shareholders.

High dividend-paying stocks are considered to have stable cash flow and earnings, and these companies often operate in mature and dominant industries like Coal India, BPCL and ONGC, which allow them to distribute large amounts of cash to shareholders without making massive new investments for growth.

Investors think high dividend stocks are less volatile and would give stable returns in a narrow range. However, in the last one year, some of these dividend-paying stocks have also delivered strong returns to investors along with consistent dividend payouts. Stocks like Vedanta, BPCL have risen over 50%.

Stocks with high dividend yield and strong returns

As seen from the above table, Vedanta, BPCL, Hindustan Zinc and others have given stock returns between 19% and 70.6% in the last one-year period. These returns are substantially higher compared to benchmark indices like NIFTY50, which delivered around 13% return during the same period.

Besides strong share price gains, these companies have given consistent dividends. Hence, investors are getting regular dividend payouts and significant stock price appreciation.

Vedanta and Hindustan Zinc stock shine

Hindustan Zinc and its parent company Vedanta have given high dividend payouts. Hindustan Zinc, which has a majority stakeholder as Vedanta paid its last interim dividend of ₹10 per share in June 2025. Meanwhile, Vedanta Ltd last dividend was of ₹16 per share in August 2025.

Both stocks have delivered standout performance over the last one year amid a rise in prices of key commodities like silver and zinc. Hindustan Zinc is one of the largest silver and zinc producers globally.

Hindustan Zinc reported 46% YoY rise in Q3FY26 consolidated net profit to ₹3,916 crore, while its revenue rose 27.4% YoY to ₹10,980 crore, supported by higher realisation and better margins. Meanwhile, Vedanta Q3 net profit stood at ₹7,807 crore, up 60% YoY, while revenue jumped 36.9% YoY to ₹23,369 crore.

Another metal exploration company, NMDC Ltd has a dividend yield of 4.09% and has given 24.7% stock return to investors. High stock return is driven by a rise in iron ore production and a surge in commodity prices in the last one year. Amid rising demand for steel, the company set a target of 55 million tonnes (MT) of iron ore production for FY26.

BPCL delivers standout performance

Shares of the oil refining company, Bharat Petroleum Corporation Ltd (BPCL), have performed exceptionally well in the last year, with a stock return of 50.9%. The company has a dividend yield of 4.6% and paid ₹22.5 total dividend in the last one year.

The company’s stock has delivered a high return driven by upbeat earnings, increased sales volume and strong refining margins, which boosted profitability as crude oil prices stabilised while product demand remained strong. BPCL reported 62% YoY jump in Q3 net profit to ₹7,545 crore, while its revenue stood at ₹1.18 lakh crore.

Coal India gives dividend and decent return

Coal India has given a ₹26.4 per share dividend payout in the last one year, which is the highest in the above list in terms of value. Meanwhile, its stock has delivered 19.4% return largely due to strong operational performance, sales volume, robust production and demand for power.

Mindspace Business Parks REIT

Mindspace Business Parks REIT shares have gained over 34% in the last one year driven by high portfolio occupancy, strong rental income growth, and robust demand from Global Capability Centres (GCCs). Real Estate Investment Trusts (REITs) are generally required to distribute at least 90% of their taxable income to shareholders as dividends. As a result, the Mindspace REIT has paid consistent dividend and has a dividend yield of nearly 5% in last one year.