Top 7 Indian PSUs with an Uninterrupted 20-Year Dividend Track Record

NEW DELHI | Feb 17, 2026: In an era where market volatility can wipe out capital overnight, conservative investors have long turned to the "Gems" of the public sector. While many private firms suspend payouts during economic downturns, a select group of Public Sector Undertakings (PSUs) has maintained a legendary streak of rewarding shareholders.

According to DIPAM (Department of Investment and Public Asset Management) guidelines, profitable PSUs are mandated to pay at least 30% of their net profit or 5% of their net worth as dividends. This regulatory push has created an elite list of companies that have shared their wealth every single year for over two decades.

The 7 Dividend Kings: A 20-Year Unbroken Legacy

1. Coal India Limited (CIL)

Though Coal India was listed in 2010, its dividend payout ratio has been the highest among all large-cap PSUs. It is famous for its interim dividend clusters. In FY26 alone, it has already declared multiple payouts.

• 2026 Avg. Yield: ~7.2% – 8.5%

• The Hook: It often provides returns higher than most Bank Fixed Deposits.

2. Oil & Natural Gas Corporation (ONGC)

ONGC has been a cash-generating machine for over 25 years. Even during the oil price crash of 2020, ONGC did not break its dividend streak.

• 2026 Avg. Yield: ~5.5% – 6.2%

• The Hook: Massive offshore production in the KG-Basin ensures high cash reserves for future payouts.

3. NTPC Limited

A favorite for long-term "Passive Income" seekers, NTPC has paid dividends every year since its IPO in 2004. With its recent pivot to Green Energy and the 4x revenue growth target for its mining subsidiary (NML), its dividend capacity is projected to grow.

• 2026 Avg. Yield: ~2.8% – 3.4%

• The Hook: Highly stable business model with regulated returns.

4. GAIL (India) Limited

As India's gas transmission monopoly, GAIL has a track record of consistent dividend payments dating back to the late 90s. It has also frequently rewarded shareholders with Bonus Shares alongside dividends.

• 2026 Avg. Yield: ~4.0% – 5.1%

• The Hook: Monopoly in pipeline infrastructure guarantees steady cash flow.

5. Indian Oil Corporation (IOC)

IOC has not missed a dividend in over 25 years. Despite refining margin fluctuations, it remains a pillar of the Indian energy sector and a consistent income generator for retail investors.

• 2026 Avg. Yield: ~6.0% – 7.5%

• The Hook: Strategic importance to the government ensures regular profit sharing.

6. Bharat Electronics Limited (BEL)

BEL is a rare "Growth + Income" stock. While most defense stocks are volatile, BEL has maintained a 20-year+ streak of payouts while giving multibagger capital gains.

• 2026 Avg. Yield: ~1.2% (Yield appears low due to the massive stock price surge, but actual payout is consistent).

• The Hook: A massive order book ensures dividend visibility for the next 5 years.

7. Power Grid Corporation of India

Since its listing in 2007, Power Grid has been a "Dividend Machine." It operates on a "Cost-Plus" model, meaning its profits are virtually guaranteed, leading to an unbroken chain of payments.

• 2026 Avg. Yield: ~4.5% – 5.5%

• The Hook: Zero competition in inter-state power transmission.

Comparative Snapshot: 2026 Dividend Performance

Investor Strategy: The "Ex-Dividend" Catch

To qualify for these "King-sized" payouts, investors must hold the shares in their Demat account on the Record Date.

Important: Since India uses T+1 settlement, you must purchase the stock at least one day before the "Ex-Dividend Date" to be eligible.