4 Top Stocks With Dividend Yield Above 4 Per Cent to Watch for Future Multibagger Potential: PFC, SBI Funds Management, Vedanta and NMDC
- October 22, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
PFC Rs 328.40. SBI Funds Management Rs 478.80. Vedanta Rs 236.85. NMDC Rs 69.60. Market caps from Rs 62,352 crore to Rs 1.13 lakh crore. Data as of 21 Oct 2026.
Quick Answer
PFC, SBI Funds Management, Vedanta and NMDC are the 4 picks in this stocks with dividend yield above 4 per cent watchlist, with market caps between Rs 62,352 crore and Rs 1.13 lakh crore. PFC stands out for the biggest five-year price gain at 179.34%, while SBI Funds Management offers the highest return on equity at 51.44%. PE ratios run from 3.36 to 34.47, so compare each one with its industry PE before investing. All figures are as of 21 October 2026.
Stocks with dividend yield above 4 per cent to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. PFC, SBI Funds Management, Vedanta and NMDC meet that test, with market caps from Rs 62,352 crore to Rs 1.13 lakh crore and PFC offering the biggest five-year price gain at 179.34%. Each of these companies has a dividend yield of at least 4 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a dividend yield of at least 4 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. The companies here range from midcaps to largecaps in size. Investors screening stocks with dividend yield above 4 per cent usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 21 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Stocks With Dividend Yield Above 4 Per Cent and Why Do They Attract Multibagger Interest?
Stocks with dividend yield above 4 per cent are shares that return a large share of their price to investors as dividend each year. The four here cover power finance, asset management, metals and iron ore.
A high yield matters most when profit is rising, since that supports future payouts. For stocks with dividend yield above 4 per cent, latest quarter profit also rose. Investors researching stocks with dividend yield above 4 per cent get a fuller picture by reading growth and valuation together. The table below lines up stocks with dividend yield above 4 per cent on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use stocks with dividend yield above 4 per cent as a starting point for your own research.
Stocks With Dividend Yield Above 4 Per Cent at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 21 October 2026. PFC has the lowest PE of the group at 3.36, while SBI Funds Management posts the highest return on equity at 51.44%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Power Finance Corporation | 328.40 | 1,12,946 | 3.36 | 17.68 | 18.22% | 0.79 | 313.35 to 486.50 |
| SBI Funds Management | 478.80 | 1,05,732 | 34.47 | 17.97 | 51.44% | 17.73 | 478.80 to 624.95 |
| Vedanta | 236.85 | 96,235 | 3.37 | 12.27 | 9.55% | 1.94 | 236.85 to 795.00 |
| NMDC | 69.60 | 62,352 | 8.36 | 10.06 | 21.87% | 1.83 | 69.60 to 97.49 |
PFC: Five-Year Gain of 179.34%
Power Finance Corporation is a government-owned lender that finances power generation, transmission, distribution and renewable energy projects. It reported FY26 total income of Rs 1,15,533.18 crore, up 8.38% year on year, and net profit of Rs 33,625.34 crore, up 10.19%. Net profit has compounded at 15.69% a year since FY22, while total income has grown 10.91% a year.
Net profit for the June 2026 quarter grew 0.18% to Rs 8,997.92 crore. The share price has gained 179.34% over five years. Foreign investors raised their holding from 18.66% in June 2025 to 20.54% in June 2026. The stock trades at a PE of 3.36 against an industry PE of 17.68, below the sector average, with a return on equity of 18.22%. The dividend yield is 5.42%.
SBI Funds Management: 29.75% Profit CAGR Since FY22
SBI Funds Management is the asset management arm of the State Bank of India group and runs one of the largest mutual fund businesses in the country. It reported FY26 revenue of Rs 4,976.11 crore, up 17.47% year on year, and net profit of Rs 3,067.38 crore, up 20.76%. Net profit has compounded at 29.75% a year since FY22, while revenue has grown 25.59% a year. Operating margin was 81.61% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 34.47 against an industry PE of 17.97, with a return on equity of 51.44%. In the June 2026 quarter, revenue rose 4.64% to Rs 1,389.89 crore and net profit grew 3.70% to Rs 880.26 crore. Domestic institutions raised their holding from 0.00% in March 2026 to 2.97% in July 2026.
Vedanta: Revenue Up 23.92% in FY26
Vedanta is a diversified natural resources company with operations in zinc, aluminium, oil and gas, copper and iron ore. It reported FY26 revenue of Rs 79,987 crore, up 23.92% year on year, and net profit of Rs 12,480 crore, up 34.54%. Operating margin was 31.43% in FY26.
In the June 2026 quarter, revenue rose 53.37% to Rs 24,747 crore and net profit grew 77.65% to Rs 7,918 crore. Foreign investors raised their holding from 10.60% in June 2025 to 15.77% in June 2026. The stock trades at a PE of 3.37 against an industry PE of 12.27, below the sector average.
NMDC: Revenue Up 31.61% in FY26
NMDC is a government-owned miner and India’s largest iron ore producer. It reported FY26 revenue of Rs 33,559.27 crore, up 31.61% year on year, and net profit of Rs 7,415.37 crore, up 13.39%. Revenue has compounded at 5.90% a year since FY22. Operating margin was 33.51% in FY26. The debt-to-equity ratio is 0.19.
The stock trades at a PE of 8.36 against an industry PE of 10.06, below the sector average, with a return on equity of 21.87%. The dividend yield is 4.94%. In the June 2026 quarter, revenue rose 1.47% to Rs 7,142.54 crore and net profit grew 1.94% to Rs 2,005.71 crore. Foreign investors raised their holding from 12.21% in June 2025 to 13.59% in June 2026.
Stocks With Dividend Yield Above 4 Per Cent: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with dividend yield above 4 per cent. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Total Income (Rs Cr) | Net Profit (Rs Cr) | Income Growth (YoY) | Net Profit Growth (YoY) | Latest Quarter Profit Growth |
|---|---|---|---|---|---|
| PFC | 1,15,533.18 | 33,625.34 | 8.38% | 10.19% | 0.18% |
| SBI Funds Management | 4,976.11 | 3,067.38 | 17.47% | 20.76% | 3.70% |
| Vedanta | 79,987 | 12,480 | 23.92% | 34.54% | 77.65% |
| NMDC | 33,559.27 | 7,415.37 | 31.61% | 13.39% | 1.94% |
Check the Univest Screener for live data on these stocks with dividend yield above 4 per cent
Institutional Holding in PFC, SBI Funds Management, Vedanta and NMDC
Institutional holding shows who is backing these stocks with dividend yield above 4 per cent alongside the promoter. The table uses the latest reported quarter for each. PFC has the deepest institutional backing, with FII and DII together holding 35.05% as of June 2026. Domestic institutions increased their holding over the past year in SBI Funds Management (from 0.00% to 2.97%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| PFC | 55.99% | 20.54% | 14.51% | 8.96% | June 2026 |
| SBI Funds Management | 88.19% | 1.43% | 2.97% | 7.41% | July 2026 |
| Vedanta | 54.72% | 15.77% | 10.83% | 18.67% | June 2026 |
| NMDC | 60.79% | 13.59% | 13.81% | 11.80% | June 2026 |
Risks to Weigh in Stocks With Dividend Yield Above 4 Per Cent
Being careful with stocks with dividend yield above 4 per cent means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: SBI Funds Management trades at a PE of 34.47 against an industry PE of 17.97, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Stocks With Dividend Yield Above 4 Per Cent
Picking from stocks with dividend yield above 4 per cent comes down to four checks, applied in order.
- Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
- Compare each PE with the industry PE (10.06 to 17.97) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
Download the Univest iOS App or Univest Android App to track PFC, SBI Funds Management, Vedanta and NMDC live prices.
Conclusion
Among stocks with dividend yield above 4 per cent, PFC stands out for the biggest five-year price gain at 179.34%, SBI Funds Management for the highest return on equity at 51.44%, Vedanta for the strongest latest-quarter profit growth at 77.65% and NMDC for 31.61% revenue growth in FY26. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing stocks with dividend yield above 4 per cent should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Stocks With Dividend Yield Above 4 Per Cent to Watch
Which are the best stocks with dividend yield above 4 per cent to watch for multibagger potential?
Ans. PFC, SBI Funds Management, Vedanta and NMDC are the 4 names this list highlights, with market caps of Rs 1,12,946 crore, Rs 1,05,732 crore, Rs 96,235 crore and Rs 62,352 crore respectively. PFC is notable for the biggest five-year price gain at 179.34%. SBI Funds Management stands out for the highest return on equity at 51.44%. Vedanta offers the strongest latest-quarter profit growth at 77.65%. NMDC brings 31.61% revenue growth in FY26. These are watchlist names for stocks with dividend yield above 4 per cent, not recommendations, so match each one to your own risk profile and time horizon.
Is SBI Funds Management a good stock for long-term investors?
Ans. SBI Funds Management has a return on equity of 51.44%, a PE of 34.47 against an industry PE of 17.97 and a market cap of Rs 1,05,732 crore. Net profit has compounded at 29.75% a year since FY22, and FY26 revenue rose 17.47% while June 2026 quarter net profit grew 3.70%. Long-term returns in stocks with dividend yield above 4 per cent depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can PFC become a multibagger from here?
Ans. PFC has already gained 179.34% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with dividend yield above 4 per cent requires earnings to keep growing faster than the market for several years. Net profit has compounded at 15.69% a year since FY22, and FY26 revenue rose 8.38%. At a PE of 3.36 against an industry PE of 17.68, valuation should be checked against that growth before investing.
What is the market cap of PFC, SBI Funds Management, Vedanta and NMDC?
Ans. As of 21 October 2026, PFC has a market cap of Rs 1,12,946 crore, SBI Funds Management has a market cap of Rs 1,05,732 crore, Vedanta has a market cap of Rs 96,235 crore and NMDC has a market cap of Rs 62,352 crore. PFC is the largest of the group. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on stocks with dividend yield above 4 per cent.
What are the risks of investing in stocks with dividend yield above 4 per cent?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. SBI Funds Management trades at a PE of 34.47 against an industry PE of 17.97, so earnings growth needs to hold up.
Why is SBI Funds Management trading at a PE of 34.47?
Ans. SBI Funds Management’s PE of 34.47 compares with an industry PE of 17.97. The market is paying a premium for a return on equity of 51.44%, profit growth of 29.75% a year since FY22 and FY26 revenue growth of 17.47%, which also means the stock is more sensitive if growth slows. Investors in stocks with dividend yield above 4 per cent who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in PFC, SBI Funds Management, Vedanta and NMDC?
Ans. As of the latest reported quarter, FII and DII together hold 35.05% of PFC (20.54% and 14.51%), 4.40% of SBI Funds Management (1.43% and 2.97%), 26.60% of Vedanta (15.77% and 10.83%) and 27.40% of NMDC (13.59% and 13.81%). Rising institutional holding is a useful signal in stocks with dividend yield above 4 per cent, though it should be read with earnings trends rather than on its own.
