4 Largecap Stocks With 3-6 Per Cent Dividend Yield to Watch for Future Multibagger Potential: TCS, Infosys, Tech Mahindra and Canara Bank
- October 21, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
TCS Rs 2,460.90. Infosys Rs 1,130.70. Tech Mahindra Rs 1,779.10. Canara Bank Rs 122. Market caps from Rs 1.06 lakh crore to Rs 8.33 lakh crore. Data as of 20 Oct 2026.
Quick Answer
TCS, Infosys, Tech Mahindra and Canara Bank are the 4 picks in this stocks with 3-6 per cent dividend yield watchlist, with market caps between Rs 1.06 lakh crore and Rs 8.33 lakh crore. TCS stands out for the highest return on equity at 43.37%, while Infosys offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10. PE ratios run from 5.23 to 31.30, so compare each one with its industry PE before investing. All figures are as of 20 October 2026.
Stocks with 3-6 per cent dividend yield to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. TCS, Infosys, Tech Mahindra and Canara Bank meet that test, with market caps from Rs 1.06 lakh crore to Rs 8.33 lakh crore and TCS offering the highest return on equity at 43.37%. Each of these companies has a dividend yield between 3 and 6 per cent, and net profit grew in FY26 and in the latest quarter.
This list covers companies with a dividend yield between 3 and 6 per cent, rising profit in FY26 and the latest quarter, and market capitalisation above Rs 1,00,000 crore. Each company has a market cap above Rs 1 lakh crore. Investors screening stocks with 3-6 per cent dividend yield usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 20 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Stocks With 3-6 Per Cent Dividend Yield and Why Do They Attract Multibagger Interest?
Stocks with 3-6 per cent dividend yield are shares that return a meaningful part of the price to investors as dividends every year. The four here cover IT services and public sector banking.
A yield in this range is well above the market average. For stocks with 3-6 per cent dividend yield, a steady dividend backed by rising profit is what investors look for. For stocks with 3-6 per cent dividend yield, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of stocks with 3-6 per cent dividend yield, using FY26 and latest quarter data. Prices move daily, so recheck the figures for stocks with 3-6 per cent dividend yield before you decide.
Stocks With 3-6 Per Cent Dividend Yield at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 20 October 2026. Canara Bank has the lowest PE of the group at 5.23, while TCS posts the highest return on equity at 43.37%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Tata Consultancy Services | 2,460.90 | 8,32,884 | 16.06 | 18.27 | 43.37% | 7.00 | 1,976.80 to 3,350.00 |
| Infosys | 1,130.70 | 4,41,906 | 14.57 | 18.27 | 33.24% | 5.12 | 980.40 to 1,728.00 |
| Tech Mahindra | 1,779.10 | 1,61,599 | 31.30 | 18.49 | 16.24% | 5.45 | 1,304.10 to 1,854.00 |
| Canara Bank | 122 | 1,06,353 | 5.23 | 12.02 | 16.77% | 0.87 | 116.51 to 162.89 |
TCS: Return on Equity of 43.37%
TCS is India’s largest IT services company by market capitalisation and runs large AI and data practices for global clients. It reported FY26 revenue of Rs 2,71,423 crore, up 4.68% year on year, and net profit of Rs 49,454 crore, up 1.35%. Net profit has compounded at 6.49% a year since FY22, while revenue has grown 8.51% a year. Operating margin was 27.07% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
In the September 2026 quarter, revenue rose 11.79% to Rs 74,525 crore and net profit grew 14.86% to Rs 13,934 crore. Domestic institutions raised their holding from 12.01% in June 2025 to 13.47% in June 2026. The stock trades at a PE of 16.06 against an industry PE of 18.27, below the sector average, with a return on equity of 43.37%. The dividend yield is 4.78%.
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.
Tech Mahindra: Debt-to-Equity of 0.07
Tech Mahindra, part of the Mahindra Group, provides IT and business services to telecom and other global clients. It reported FY26 revenue of Rs 56,847.30 crore, up 5.58% year on year, and net profit of Rs 4,805.50 crore, up 12.99%. Revenue has compounded at 5.57% a year since FY22. Operating margin was 15.47% in FY26. The debt-to-equity ratio is 0.07, which keeps interest costs low.
In the September 2026 quarter, revenue rose 15.23% to Rs 16,172.80 crore and net profit grew 33.95% to Rs 1,609.70 crore. The share price is up 16.96% over the past year. Domestic institutions raised their holding from 32.13% in June 2025 to 36.92% in June 2026. The stock trades at a PE of 31.30 against an industry PE of 18.49, with a return on equity of 16.24%. The dividend yield is 3.09%.
Canara Bank: 34.48% Profit CAGR Since FY22
Canara Bank is a large government-owned bank with a wide branch network and a growing retail and digital business. It reported FY26 total income of Rs 1,53,083.22 crore, up 0.28% year on year, and net profit of Rs 18,951.23 crore, up 9.32%. Net profit has compounded at 34.48% a year since FY22, while total income has grown 12.89% a year.
The stock trades at a PE of 5.23 against an industry PE of 12.02, below the sector average, with a return on equity of 16.77%. The dividend yield is 3.58%. Net profit for the September 2026 quarter grew 6.50% to Rs 5,182.03 crore. The share price has gained 198.67% over five years. Foreign investors raised their holding from 11.90% in September 2025 to 12.27% in September 2026.
Stocks With 3-6 Per Cent Dividend Yield: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with 3-6 per cent dividend yield. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | Net Profit Growth (YoY) |
|---|---|---|---|---|---|
| TCS | 2,71,423 | 49,454 | 4.68% | 8.51% | 1.35% |
| Infosys | 1,82,972 | 29,474 | 9.83% | 10.23% | 10.18% |
| Tech Mahindra | 56,847.30 | 4,805.50 | 5.58% | 5.57% | 12.99% |
| Canara Bank | 1,53,083.22 | 18,951.23 | 0.28% | 12.89% | 9.32% |
Check the Univest Screener for live data on these stocks with 3-6 per cent dividend yield
Institutional Holding in TCS, Infosys, Tech Mahindra and Canara Bank
Institutional holding shows who is backing these stocks with 3-6 per cent dividend yield alongside the promoter. The table uses the latest reported quarter for each. Infosys has the deepest institutional backing, with FII and DII together holding 70.05% as of June 2026. Domestic institutions increased their holding over the past year in TCS (from 12.01% to 13.47%), Infosys (from 39.60% to 42.96%) and Tech Mahindra (from 32.13% to 36.92%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| TCS | 71.77% | 9.06% | 13.47% | 5.70% | June 2026 |
| Infosys | 13.82% | 27.09% | 42.96% | 16.13% | June 2026 |
| Tech Mahindra | 34.97% | 18.66% | 36.92% | 9.45% | June 2026 |
| Canara Bank | 62.93% | 12.27% | 12.38% | 12.42% | September 2026 |
Risks to Weigh in Stocks With 3-6 Per Cent Dividend Yield
Being careful with stocks with 3-6 per cent dividend yield 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: Tech Mahindra trades at a PE of 31.30 against an industry PE of 18.49, 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 3-6 Per Cent Dividend Yield
Picking from stocks with 3-6 per cent dividend yield comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (12.02 to 18.49) 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 stocks with 3-6 per cent dividend yield, TCS stands out for the highest return on equity at 43.37%, Infosys for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10, Tech Mahindra for the strongest latest-quarter profit growth at 33.95% and Canara Bank for the fastest profit growth, 34.48% a year since FY22. 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 3-6 per cent dividend yield 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 3-6 Per Cent Dividend Yield to Watch
Which are the best stocks with 3-6 per cent dividend yield to watch for multibagger potential?
Ans. TCS, Infosys, Tech Mahindra and Canara Bank are the 4 names this list highlights, with market caps of Rs 8,32,884 crore, Rs 4,41,906 crore, Rs 1,61,599 crore and Rs 1,06,353 crore respectively. TCS is notable for the highest return on equity at 43.37%. Infosys stands out for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10. Tech Mahindra offers the strongest latest-quarter profit growth at 33.95%. Canara Bank brings the fastest profit growth, 34.48% a year since FY22. These are watchlist names for stocks with 3-6 per cent dividend yield, not recommendations, so match each one to your own risk profile and time horizon.
Is TCS a good stock for long-term investors?
Ans. TCS has a return on equity of 43.37%, a PE of 16.06 against an industry PE of 18.27 and a market cap of Rs 8,32,884 crore. Net profit has compounded at 6.49% a year since FY22, and FY26 revenue rose 4.68% while September 2026 quarter net profit grew 14.86%. Long-term returns in stocks with 3-6 per cent dividend yield depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Canara Bank become a multibagger from here?
Ans. Canara Bank has already gained 198.67% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with 3-6 per cent dividend yield requires earnings to keep growing faster than the market for several years. Net profit has compounded at 34.48% a year since FY22, and FY26 revenue rose 0.28%. At a PE of 5.23 against an industry PE of 12.02, valuation should be checked against that growth before investing.
What is the market cap of TCS, Infosys, Tech Mahindra and Canara Bank?
Ans. As of 20 October 2026, TCS has a market cap of Rs 8,32,884 crore, Infosys has a market cap of Rs 4,41,906 crore, Tech Mahindra has a market cap of Rs 1,61,599 crore and Canara Bank has a market cap of Rs 1,06,353 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 stocks with 3-6 per cent dividend yield.
What are the risks of investing in stocks with 3-6 per cent dividend yield?
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. Tech Mahindra trades at a PE of 31.30 against an industry PE of 18.49, so earnings growth needs to hold up.
Why is Tech Mahindra trading at a PE of 31.30?
Ans. Tech Mahindra’s PE of 31.30 compares with an industry PE of 18.49. The market is paying a premium for a return on equity of 16.24% and latest-quarter profit growth of 33.95%, which also means the stock is more sensitive if growth slows. Investors in stocks with 3-6 per cent dividend yield who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in TCS, Infosys, Tech Mahindra and Canara Bank?
Ans. As of the latest reported quarter, FII and DII together hold 22.53% of TCS (9.06% and 13.47%), 70.05% of Infosys (27.09% and 42.96%), 55.58% of Tech Mahindra (18.66% and 36.92%) and 24.65% of Canara Bank (12.27% and 12.38%). Rising institutional holding is a useful signal in stocks with 3-6 per cent dividend yield, though it should be read with earnings trends rather than on its own.
