Stop settling for 6% FDs. Discover 3 powerful Indian stocks like Coal India and REC that are currently offering dividend yields over 7%. Real math, real facts, real income.
“As of February 2026, leading public banks like SBI offer just 6.25% on 1-year FDs. After inflation, the ‘real’ return is often negligible.”
The Solution: 3 Stocks Beating the FD Benchmark
1. Coal India Ltd (Yield: ~6.09% – 7.8%)
- The Fact: Largest coal producer, fueling nearly 70% of India’s electricity.
- Latest Payout: Declared a third interim dividend of ₹5.50 per share in Feb 2026.
- Why it’s a Winner: Dominant market position + very low debt-to-equity ratio (0.09) = sustainable payouts.
2. REC Limited (Yield: ~5.08% – 9.2%)
- The Fact: Govt-backed lender for power & infrastructure, riding India’s green energy push.
- Latest Payout: Interim dividend of ₹4.60 per share in Feb 2026.
- Why it’s a Winner: Pays dividends multiple times a year, consistently outperforming savings instruments.
3. Vedanta Limited (Yield: ~7% – 13.9%)
- The Fact: Natural resources giant, mining silver to oil.
- Why it’s a Winner: Aggressive dividend policy, often maintaining yields between 7%–9%. Higher risk, higher reward.
The Real Calculation: FD vs Dividend Stock
| Feature | Bank FD (Public Sector) | High-Yield Stock (e.g., Coal India) |
|---|---|---|
| Annual Interest/Yield | ~₹6,500 (6.5%) | ~₹7,800 (7.8%) |
| Growth Potential | ₹0 (Principal stays same) | Variable (Share price can rise) |
| Liquidity | Premature penalty often applies | Sell anytime at market price |
| Taxation | Taxed at your slab rate | Taxed at your slab rate |
Reality Check: Market risk exists—stock prices can fall. But with strong fundamentals, dividends remain attractive. Also, since April 2025, TDS threshold for dividends is ₹10,000, improving liquidity for small investors.
The Verdict
FDs are safe but stagnant. Dividend stocks like Coal India, REC, and Vedanta offer higher yields with growth potential. If you want your money to work harder, consider joining the 7% Yield Club.
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