4 Largecap High Dividend Stocks to Watch for Future Multibagger Potential: HDFC Bank, Infosys, NTPC and Tata Steel
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
HDFC Bank Rs 694.05. Infosys Rs 1,153.35. NTPC Rs 302.60. Tata Steel Rs 172.33. Market caps from Rs 2.20 lakh crore to Rs 11.23 lakh crore. Data as of 22 Oct 2026.
Quick Answer
HDFC Bank, Infosys, NTPC and Tata Steel are the 4 picks in this high dividend stocks watchlist, with market caps between Rs 2.20 lakh crore and Rs 11.23 lakh crore. HDFC Bank stands out for the fastest profit growth, 20.04% a year since FY22, while Infosys offers the highest return on equity at 33.24%. PE ratios run from 10.75 to 19.56, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
High dividend stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HDFC Bank, Infosys, NTPC and Tata Steel meet that test, with market caps from Rs 2.20 lakh crore to Rs 11.23 lakh crore and HDFC Bank offering the fastest profit growth, 20.04% a year since FY22. Each of these companies has a dividend yield of at least 2 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a dividend yield of at least 2 per cent, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening high dividend stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are High Dividend Stocks and Why Do They Attract Multibagger Interest?
High dividend stocks are shares of large companies that return a steady part of their profit to shareholders in cash. The four here cover private banking, IT services, power generation and steel.
A dividend pays the holder while the share price does its work over the years. For high dividend stocks, both FY26 and the latest quarter showed growth. Investors researching high dividend stocks get a fuller picture by reading growth and valuation together. The table below lines up high dividend stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use high dividend stocks as a starting point for your own research.
High Dividend Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 22 October 2026. NTPC has the lowest PE of the group at 10.75, while Infosys posts the highest return on equity at 33.24%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| HDFC Bank | 694.05 | 11,22,628 | 13.61 | 11.94 | 13.14% | 1.87 | 681.90 to 1,020.50 |
| Infosys | 1,153.35 | 4,41,906 | 14.57 | 18.27 | 33.24% | 5.12 | 980.40 to 1,728.00 |
| NTPC | 302.60 | 3,04,475 | 10.75 | 21.61 | 13.31% | 1.50 | 302.60 to 414.40 |
| Tata Steel | 172.33 | 2,20,272 | 19.56 | 22.42 | 10.56% | 2.19 | 160.06 to 224.40 |
HDFC Bank: 20.04% Profit CAGR Since FY22
HDFC Bank is India’s largest private sector bank by assets and serves retail, business and corporate customers through a wide branch and digital network. It reported FY26 total income of Rs 4,95,462.81 crore, up 5.21% year on year, and net profit of Rs 79,219.46 crore, up 7.87%. Net profit has compounded at 20.04% a year since FY22, while total income has grown 31.11% a year.
In the September 2026 quarter, total income rose 9.11% to Rs 1,29,358.69 crore and net profit grew 5.76% to Rs 21,537.09 crore. Domestic institutions raised their holding from 36.26% in September 2025 to 43.63% in September 2026. The stock trades at a PE of 13.61 against an industry PE of 11.94, with a return on equity of 13.14%. The dividend yield is 2.13%.
Infosys: Return on Equity of 33.24%
Infosys is a large IT services and consulting company that has built an AI-first offering around its Topaz platform. It reported FY26 revenue of Rs 1,82,972 crore, up 9.83% year on year, and net profit of Rs 29,474 crore, up 10.18%. Net profit has compounded at 7.41% a year since FY22, while revenue has grown 10.23% a year. Operating margin was 25.36% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
The stock trades at a PE of 14.57 against an industry PE of 18.27, below the sector average, with a return on equity of 33.24%. The dividend yield is 4.40%. In the June 2026 quarter, revenue rose 13.56% to Rs 49,195 crore and net profit grew 12.29% to Rs 7,775 crore. Domestic institutions raised their holding from 39.60% in June 2025 to 42.96% in June 2026.
NTPC: Five-Year Gain of 110.40%
NTPC is India’s largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.
In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026. The stock trades at a PE of 10.75 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.87%.
Tata Steel: Market Cap of Rs 2,20,272 Crore
Tata Steel is one of the world’s major steel makers, with operations in India, the UK and the Netherlands. It reported FY26 revenue of Rs 2,33,541.72 crore, up 6.12% year on year, and net profit of Rs 10,885.82 crore, up 242.99%. Operating margin was 15.12% in FY26.
The stock trades at a PE of 19.56 against an industry PE of 22.42, below the sector average. The dividend yield is 2.27%. In the June 2026 quarter, revenue rose 14.14% to Rs 61,026.97 crore and net profit grew 18.82% to Rs 2,385.24 crore. Domestic institutions raised their holding from 26.25% in June 2025 to 26.62% in June 2026.
High Dividend Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these high dividend stocks. 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) | Latest Quarter Income Growth | Net Profit Growth (YoY) | Latest Quarter Profit Growth |
|---|---|---|---|---|---|
| HDFC Bank | 4,95,462.81 | 79,219.46 | 9.11% | 7.87% | 5.76% |
| Infosys | 1,82,972 | 29,474 | 13.56% | 10.18% | 12.29% |
| NTPC | 1,89,798.56 | 30,009.98 | 6.94% | 48.19% | 12.90% |
| Tata Steel | 2,33,541.72 | 10,885.82 | 14.14% | 242.99% | 18.82% |
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Institutional Holding in HDFC Bank, Infosys, NTPC and Tata Steel
Institutional holding shows who is backing these high dividend stocks alongside the promoter. The table uses the latest reported quarter for each. HDFC Bank has the deepest institutional backing, with FII and DII together holding 83.03% as of September 2026. Domestic institutions increased their holding over the past year in HDFC Bank (from 36.26% to 43.63%), Infosys (from 39.60% to 42.96%), NTPC (from 28.92% to 29.44%) and Tata Steel (from 26.25% to 26.62%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| HDFC Bank | Nil | 39.40% | 43.63% | 16.97% | September 2026 |
| Infosys | 13.82% | 27.09% | 42.96% | 16.13% | June 2026 |
| NTPC | 51.10% | 16.30% | 29.44% | 3.15% | June 2026 |
| Tata Steel | 32.95% | 19.37% | 26.62% | 21.06% | June 2026 |
Risks to Weigh in High Dividend Stocks
Being careful with high dividend stocks 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: HDFC Bank trades at a PE of 13.61 against an industry PE of 11.94, 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 High Dividend Stocks
Picking from high dividend stocks 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 (11.94 to 22.42) 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.
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Conclusion
Among high dividend stocks, HDFC Bank stands out for the fastest profit growth, 20.04% a year since FY22, Infosys for the highest return on equity at 33.24%, NTPC for the biggest five-year price gain at 110.40% and Tata Steel for the strongest latest-quarter profit growth at 18.82%. 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 high dividend stocks 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 High Dividend Stocks to Watch
Which are the best high dividend stocks to watch for multibagger potential?
Ans. HDFC Bank, Infosys, NTPC and Tata Steel are the 4 names this list highlights, with market caps of Rs 11,22,628 crore, Rs 4,41,906 crore, Rs 3,04,475 crore and Rs 2,20,272 crore respectively. HDFC Bank is notable for the fastest profit growth, 20.04% a year since FY22. Infosys stands out for the highest return on equity at 33.24%. NTPC offers the biggest five-year price gain at 110.40%. Tata Steel brings the strongest latest-quarter profit growth at 18.82%. These are watchlist names for high dividend stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Infosys a good stock for long-term investors?
Ans. Infosys has a return on equity of 33.24%, a PE of 14.57 against an industry PE of 18.27 and a market cap of Rs 4,41,906 crore. Net profit has compounded at 7.41% a year since FY22, and FY26 revenue rose 9.83% while June 2026 quarter net profit grew 12.29%. Long-term returns in high dividend stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can HDFC Bank become a multibagger from here?
Ans. HDFC Bank has a market cap of Rs 11,22,628 crore. A multibagger outcome in high dividend stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 20.04% a year since FY22, and FY26 revenue rose 5.21%. At a PE of 13.61 against an industry PE of 11.94, valuation should be checked against that growth before investing.
What is the market cap of HDFC Bank, Infosys, NTPC and Tata Steel?
Ans. As of 22 October 2026, HDFC Bank has a market cap of Rs 11,22,628 crore, Infosys has a market cap of Rs 4,41,906 crore, NTPC has a market cap of Rs 3,04,475 crore and Tata Steel has a market cap of Rs 2,20,272 crore. All of them qualify as largecaps. 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 high dividend stocks.
What are the risks of investing in high dividend stocks?
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. HDFC Bank trades at a PE of 13.61 against an industry PE of 11.94, so earnings growth needs to hold up.
Is NTPC trading below its industry PE?
Ans. NTPC trades at a PE of 10.75 against an industry PE of 21.61. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 18.01% a year since FY22 and June 2026 quarter net profit grew 12.90%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in HDFC Bank, Infosys, NTPC and Tata Steel?
Ans. As of the latest reported quarter, FII and DII together hold 83.03% of HDFC Bank (39.40% and 43.63%), 70.05% of Infosys (27.09% and 42.96%), 45.74% of NTPC (16.30% and 29.44%) and 45.99% of Tata Steel (19.37% and 26.62%). Rising institutional holding is a useful signal in high dividend stocks, though it should be read with earnings trends rather than on its own.
