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Mumbai, February 7, 2026: The conclusion of the Q3 FY26 earnings season has redirected investor attention toward the "cash cows" of the Indian equity market. For those prioritizing passive income, identifying the Highest Dividend‑Yield PSU after Q3 results has become the most critical strategic move this February.
As Public Sector Undertakings (PSUs) report healthy margins and robust cash flows, dividend yields in specific sectors have spiked, significantly outperforming traditional fixed-income instruments such as Fixed Deposits (FDs) and Government Bonds.
Master Yield Table: Post-Q3 FY26 Data
The following table merges current market pricing, annualized payouts, and core business catalysts to provide a comprehensive view for income investors:
| Company Name | Sector | CMP (₹) | Annualized Div. (₹) | Yield (%) | Key Highlight / Investor Insight |
|---|---|---|---|---|---|
| Coal India | Mining | 482 | 35.50 | 7.36% | Cash-rich balance sheet supported by record coal production. |
| REC Ltd | Finance | 525 | 34.00 | 6.47% | Dominant market leader in green energy financing. |
| PFC Ltd | Finance | 455 | 28.50 | 6.26% | Consistent quarterly payouts and a high-quality loan book. |
| Indian Oil (IOC) | Refining | 178 | 11.00 | 6.17% | Significant recovery in marketing margins during Q3. |
| NMDC Ltd | Mining | 235 | 13.50 | 5.74% | Profit surge driven by rising global iron ore demand. |
| ONGC | Oil & Gas | 282 | 15.75 | 5.58% | Stable crude production and aggressive exploration growth. |
| Oil India | Oil & Gas | 585 | 31.00 | 5.29% | New gas discoveries provide a strong future earnings outlook. |
| Power Grid | Power | 292 | 14.00 | 4.79% | A defensive "monopoly" play in India's power transmission. |
Sectoral Analysis: Driving the Yield Momentum
The Power Finance Surge (REC & PFC)
The competition for the "Highest Dividend-Yield PSU after Q3 results" is often a neck-and-neck race between the two power financing giants. Both REC and PFC have sustained yields above 6% following double-digit growth in their loan books for the December quarter. Their pivot toward Renewable Energy Projects ensures long-term, sustainable cash flows for future distributions.
Mining Dominance (Coal India & NMDC)
Coal India remains the undisputed "Yield King" of the Maharatnas, with a yield exceeding 7.3%. Ambitious production targets for 2026 ensure that the board remains generous with surplus cash distribution. Similarly, NMDC is capitalizing on the infrastructure super-cycle, maintaining a healthy 5.74% yield.
Oil & Energy Resilience (ONGC & OMCs)
With crude oil prices stabilizing in early 2026, the marketing margins for Indian Oil (IOC) and BPCL have remained resilient. IOC, currently yielding over 6%, stands out as a premier value pick in the energy space following its robust Q3 performance review.
Investor Strategy: Assessing Yield Sustainability
When evaluating the Highest Dividend‑Yield PSU after Q3 results, investors must consider the "Sustainability Factor." A high yield is only beneficial if the company’s Earnings Per Share (EPS) is growing alongside its payouts.
Crucial Market Note: Under the current T+1 settlement cycle, investors must purchase shares at least one business day prior to the "Ex-Dividend Date" to be eligible for the credit. Purchasing on or after the Ex-date will disqualify the buyer from the current payout.
The Dividend Payout Math
For instance, if an investor allocates ₹5,00,000 into Coal India at a 7.36% yield:
$$\text{Annual Dividend Income} = 5,00,000 \times 0.0736 = ₹36,800$$
While this income is taxable according to individual slabs, it provides a consistent cash flow that serves as a hedge against market volatility, often exceeding the post-tax returns of high-yield debt funds.
Final Verdict
As of February 2026, Coal India and REC Ltd are the primary targets for income-focused portfolios. Conversely, Power Grid and ONGC offer a balanced "Hybrid" approach, providing respectable yields alongside capital preservation and moderate growth potential.