Mumbai: India’s Public Sector Undertakings (PSUs) remain a popular choice for investors seeking steady dividend income. In the fiscal year 2025‑26, several PSUs continued their tradition of strong dividend payouts, making them attractive for income-focused portfolios.
Record Dividend Inflows
India witnessed a record dividend inflow from PSUs in FY 2024‑25, with the Centre receiving over ₹74,000 crore — a 15% increase from the previous year.
Top contributors included:
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Coal India Ltd — ₹10,252 crore
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ONGC — ₹10,002 crore
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Bharat Petroleum Corp Ltd — ₹3,562 crore
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Hindustan Zinc Ltd — ₹3,619 crore
This reflects the profitability and importance of PSUs in both investor returns and national fiscal health.
Key PSU Dividend Snapshot (Approx.)
| Company | Sector | Dividend Yield (approx.) |
|---|---|---|
| Coal India Ltd | Mining | ~7% |
| NMDC Ltd | Mining | ~7% |
| ONGC | Oil & Gas | ~6% |
| REC Ltd | Financials | ~5% |
| Power Grid Corporation | Power | ~5% |
| NALCO | Metals | ~5% |
| GAIL (India) Ltd | Oil & Gas | ~4% |
| BPCL & Hindustan Zinc Ltd | Oil & Metals | ~4% |
Yields are approximate and based on recent dividend payouts and current market prices.
Why Dividend PSUs Are Attractive
Steady Cash Income
Dividend-paying PSUs provide a regular cash stream, appealing to long-term investors and retirees.
Government Dividend Policy
The government prioritizes consistent dividend payouts from profitable PSUs, ensuring stable returns for investors.
Alternative to Fixed Deposits
High dividend yields, often 5–7%, make these PSUs a competitive alternative to bank fixed deposits.
Risks to Consider
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Dividend yields can fluctuate with stock prices.
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Sectors like mining and oil are sensitive to commodity prices and regulations.
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PSU dividends are not guaranteed, and payouts depend on profit and board decisions.
Conclusion
In 2026, dividend-paying PSUs remain a reliable source of income for investors. Stocks like Coal India, NMDC, ONGC, REC, and Power Grid continue to deliver attractive yields. With government support and strong profitability, these PSUs are expected to remain leaders in shareholder value.