{"id":295539,"date":"2026-10-08T15:27:05","date_gmt":"2026-10-08T09:57:05","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=295539"},"modified":"2026-10-08T15:27:05","modified_gmt":"2026-10-08T09:57:05","slug":"coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/","title":{"rendered":"Coal India vs ITC Dividend: Which Stock Is the Real Dividend Multiplier? Yield, Payout, Earnings Trend, Price Return, Where Vedanta, Power Grid and Hindustan Zinc Fit and How to Tell Income From a Yield Trap"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>Coal India: LTM dividend Rs 26.50, yield about 6.4-6.6% at Rs 404-413, P\/E 8.2, payout 47%. ITC: Rs 14.50, yield about 5.7% at Rs 256, payout 74%, profit falling. Yield is not durability.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Coal India vs ITC dividend comes down to yield, durability and price: Coal India has paid Rs 26.50 a share over the last 12 months, a yield of about 6.4% to 6.6% at Rs 404 to Rs 413, with a payout near 47%, a P\/E near 8 and a return on equity near 28%, while ITC paid Rs 14.50 for FY26, a yield of about 5.7% at Rs 256, with a payout near 74% and a P\/E near 16. Coal India wins on yield and cover, since it pays less than half its profit, but its income is tied to coal demand and a government shareholder at about 61%, while ITC offers a defensive FMCG business and near-zero debt but falling profit after the cigarette excise hike and a stock that fell about 30% in FY26. A real dividend multiplier needs three things, a high and covered payout, stable or growing earnings and a price that does not fall, and neither stock scores perfectly, because Coal India&#8217;s price is cyclical and ITC&#8217;s earnings are shrinking. On Rs 1 lakh invested at today&#8217;s prices, the last-12-month payout is about Rs 6,500 from Coal India and about Rs 5,700 from ITC, my calculations, before tax.<\/p>\n<\/p><\/div>\n<p>Coal India vs ITC dividend is a popular comparison because both rank among India&#8217;s largest dividend payers, and both stocks are down, which pushed yields up. Coal India fell about 2% to the Rs 404 to Rs 413 area on 8 October, and ITC fell about 4% to Rs 254.70, near its 52-week low.<\/p>\n<p>If you are weighing the Coal India vs ITC dividend choice for an income portfolio, this article covers the dividend numbers, how to read yield and payout, the Coal India and ITC cases, how Vedanta, Power Grid, Hindustan Zinc and ONGC compare, the dividend multiplier framework, the risks and what to watch.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Coal_India_vs_ITC_Dividend_The_Numbers_Side_by_Side\" title=\"Coal India vs ITC Dividend: The Numbers Side by Side\">Coal India vs ITC Dividend: The Numbers Side by Side<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#How_to_Read_Yield_and_Payout_in_Coal_India_vs_ITC_Dividend\" title=\"How to Read Yield and Payout in Coal India vs ITC Dividend\">How to Read Yield and Payout in Coal India vs ITC Dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#The_Case_for_Coal_India_in_the_Coal_India_vs_ITC_Dividend_Debate\" title=\"The Case for Coal India in the Coal India vs ITC Dividend Debate\">The Case for Coal India in the Coal India vs ITC Dividend Debate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#The_Case_for_ITC_in_the_Coal_India_vs_ITC_Dividend_Debate\" title=\"The Case for ITC in the Coal India vs ITC Dividend Debate\">The Case for ITC in the Coal India vs ITC Dividend Debate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Other_Dividend_Stocks_Compared_With_Coal_India_vs_ITC_Dividend\" title=\"Other Dividend Stocks Compared With Coal India vs ITC Dividend\">Other Dividend Stocks Compared With Coal India vs ITC Dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#A_Dividend_Multiplier_Framework_Coal_India_vs_ITC_Dividend\" title=\"A Dividend Multiplier Framework: Coal India vs ITC Dividend\">A Dividend Multiplier Framework: Coal India vs ITC Dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Risks_Behind_the_Coal_India_vs_ITC_Dividend_Choice\" title=\"Risks Behind the Coal India vs ITC Dividend Choice\">Risks Behind the Coal India vs ITC Dividend Choice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#What_to_Watch_Next_in_Coal_India_vs_ITC_Dividend\" title=\"What to Watch Next in Coal India vs ITC Dividend\">What to Watch Next in Coal India vs ITC Dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Which_pays_more_Coal_India_or_ITC\" title=\"Which pays more, Coal India or ITC?\">Which pays more, Coal India or ITC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#What_is_the_Coal_India_dividend_yield\" title=\"What is the Coal India dividend yield?\">What is the Coal India dividend yield?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#What_is_the_ITC_dividend_yield\" title=\"What is the ITC dividend yield?\">What is the ITC dividend yield?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Which_has_the_safer_dividend\" title=\"Which has the safer dividend?\">Which has the safer dividend?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#What_is_a_dividend_multiplier\" title=\"What is a dividend multiplier?\">What is a dividend multiplier?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Are_Vedanta_and_Power_Grid_better\" title=\"Are Vedanta and Power Grid better?\">Are Vedanta and Power Grid better?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Are_dividends_taxable\" title=\"Are dividends taxable?\">Are dividends taxable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/coal-india-vs-itc-dividend-yield-payout-which-stock-is-real-dividend-multiplier\/#Which_should_I_buy_Coal_India_or_ITC\" title=\"Which should I buy, Coal India or ITC?\">Which should I buy, Coal India or ITC?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Coal_India_vs_ITC_Dividend_The_Numbers_Side_by_Side\"><\/span><strong>Coal India vs ITC Dividend: The Numbers Side by Side<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Measure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Coal India<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">ITC<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price on 8 October<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 404 to Rs 413, down about 2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 255 to Rs 256, down about 4%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Last-12-month dividends<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 26.50 a share<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 14.50 a share for FY26<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Dividend yield<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 6.4% to 6.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 5.4% to 5.7%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Latest payouts<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 5.25 final on 4 September; Rs 5.50 interim on 31 July; Rs 5.50 on 18 February; Rs 10.25 on 4 November 2025<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 8 final and Rs 6.50 interim in January 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Payout ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 47%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 74%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">P\/E<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 8.2 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 16 to 17 times<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Return on equity<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 28%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 29%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Debt<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Low; net cash business<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Almost debt free<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market capitalisation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 2.5 lakh crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 3.2 lakh crore<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Largest shareholder<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Government, about 61%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Institutions; no promoter<\/td>\n<\/tr>\n<\/table>\n<p>The table shows why the Coal India vs ITC dividend debate has no simple winner: Coal India has the higher yield and lower payout, and ITC has the steadier brand but lower profit growth.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Check the Univest Screener for live data on dividend stocks<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Read_Yield_and_Payout_in_Coal_India_vs_ITC_Dividend\"><\/span><strong>How to Read Yield and Payout in Coal India vs ITC Dividend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Yield equals the last 12 months&#8217; dividends divided by the price, so it rises when the price falls.<\/li>\n<li>Payout ratio is the share of profit paid out; below 50% leaves room to keep paying if profit dips.<\/li>\n<li>Cover is how many times profit covers the dividend; Coal India covers it about 2 times and ITC about 1.3 times.<\/li>\n<li>Durability depends on earnings trend and cash flow, not on the yield number.<\/li>\n<li>Total return equals dividend plus price change, and a falling price can erase the yield in the Coal India vs ITC dividend contest.<\/li>\n<\/ol>\n<p>In the Coal India vs ITC dividend comparison, ITC&#8217;s yield rose mainly because its price fell, which is the classic yield-trap check.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track Coal India, ITC and dividend stocks live.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Case_for_Coal_India_in_the_Coal_India_vs_ITC_Dividend_Debate\"><\/span><strong>The Case for Coal India in the Coal India vs ITC Dividend Debate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Yield and cover<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 6.5% with a payout near 47%, so profit covers the dividend about twice<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Valuation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A P\/E near 8 and a return on equity near 28%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Operations<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">September coal supplies rose 12.5% to 61.20 million tonnes; Q2 supplies were 186.04 million tonnes<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Balance sheet<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Low debt and a large cash position<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Shareholder<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A government holding of about 61% that favours steady dividends<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price record<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The stock gained about 13% in FY26, per one comparison<\/td>\n<\/tr>\n<\/table>\n<p>The risk in the Coal India vs ITC dividend choice is that Coal India&#8217;s profit follows coal prices, e-auction premiums and volumes, and that a government shareholder can also demand higher or lower payouts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Case_for_ITC_in_the_Coal_India_vs_ITC_Dividend_Debate\"><\/span><strong>The Case for ITC in the Coal India vs ITC Dividend Debate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Dividend<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 14.50 for FY26 and a forward yield near 5.7% at Rs 256<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Business<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Cigarettes with a legal-market share of about 75%, a growing FMCG business, paperboards and agri<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Balance sheet<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Almost no debt; return on equity near 29%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earnings trend<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Q1 FY27 profit fell about 16% after the February 2026 excise hike; cigarette segment profit fell 35%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price record<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The stock fell about 30% in FY26 and sits near its 52-week low<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Valuation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A P\/E near 16 and a payout near 74%<\/td>\n<\/tr>\n<\/table>\n<p>The risk in the Coal India vs ITC dividend choice is that ITC&#8217;s profit is falling while its payout is already high, so dividend growth may stall until earnings recover.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_Dividend_Stocks_Compared_With_Coal_India_vs_ITC_Dividend\"><\/span><strong>Other Dividend Stocks Compared With Coal India vs ITC Dividend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Stock<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Yield (approximate)<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Character<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Vedanta<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 6% to 12%, variable<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Multiple interim dividends; commodity-linked; first FY27 interim has a 14 October record date<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Hindustan Zinc<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Variable<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Payout swings with zinc and silver prices<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Power Grid<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 3.1% to 3.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Regulated returns and the steadiest growth<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">ONGC<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 5.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Tied to oil prices<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Hindustan Petroleum<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 6.2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Tied to refining margins<\/td>\n<\/tr>\n<\/table>\n<p>These yields are from trackers and change daily, and they show that the highest yield is often the least predictable in the Coal India vs ITC dividend debate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_Dividend_Multiplier_Framework_Coal_India_vs_ITC_Dividend\"><\/span><strong>A Dividend Multiplier Framework: Coal India vs ITC Dividend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Test<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Coal India<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">ITC<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Better on the test<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Yield today<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 6.5%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 5.7%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Coal India<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Payout cover<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 2 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 1.3 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Coal India<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earnings trend<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Cyclical, supported by supply growth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Falling after the tax hike<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Coal India for now<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Business stability<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Commodity and policy linked<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Defensive FMCG with a long record<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">ITC<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price momentum<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Down about 2% on the day, up in FY26<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Near the 52-week low<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Coal India<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Tax<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Dividends taxed at slab rates for both<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Same<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Equal<\/td>\n<\/tr>\n<\/table>\n<p>On these tests Coal India leads the Coal India vs ITC dividend comparison on numbers and ITC leads on business stability, so the choice depends on whether you value cover or defensiveness.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_Behind_the_Coal_India_vs_ITC_Dividend_Choice\"><\/span><strong>Risks Behind the Coal India vs ITC Dividend Choice<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Yield trap:<\/strong> A falling price can make any yield look high, as ITC shows in the Coal India vs ITC dividend debate.<\/p>\n<p><strong>Cyclicality:<\/strong> Coal prices and demand can cut Coal India&#8217;s profit and payout, a key risk in the Coal India vs ITC dividend choice.<\/p>\n<p><strong>Policy and tax:<\/strong> Excise changes hit ITC, and government payout demands affect Coal India.<\/p>\n<p><strong>Price risk:<\/strong> A fall of 10% costs more than a year&#8217;s dividend of about 6% in the Coal India vs ITC dividend trade-off.<\/p>\n<p><strong>Tax on dividends:<\/strong> Dividends are taxable and may attract 10% TDS above Rs 10,000 a year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next_in_Coal_India_vs_ITC_Dividend\"><\/span><strong>What to Watch Next in Coal India vs ITC Dividend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>ITC&#8217;s Q2 results later in October, which will shape the Coal India vs ITC dividend comparison.<\/li>\n<li>Coal India&#8217;s Q2 results and any interim dividend announcement.<\/li>\n<li>Vedanta&#8217;s first interim dividend with the 14 October record date.<\/li>\n<li>Coal prices, e-auction premiums and power demand.<\/li>\n<li>Whether ITC holds Rs 254.65 and Coal India holds its recent range.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the Coal India vs ITC dividend comparison, Coal India offers the higher yield of about 6.5% with a payout near 47%, while ITC offers about 5.7% with a defensive business but falling profit and a high payout. A real dividend multiplier needs a covered payout, stable earnings and a steady price, and neither stock meets all three today. Consult a SEBI-registered advisor before making any decision.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> 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).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_pays_more_Coal_India_or_ITC\"><\/span><strong>Which pays more, Coal India or ITC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> In the Coal India vs ITC dividend comparison, Coal India pays Rs 26.50 over 12 months, a yield of about 6.5%, against ITC&#8217;s Rs 14.50, about 5.7%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Coal_India_dividend_yield\"><\/span><strong>What is the Coal India dividend yield?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> About 6.4% to 6.6% on a price of Rs 404 to Rs 413, based on dividends of Rs 26.50 over the last 12 months.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_ITC_dividend_yield\"><\/span><strong>What is the ITC dividend yield?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> About 5.4% to 5.7% on Rs 14.50, which rose mainly because the price fell about 30% in FY26 and near-term profit is falling.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_has_the_safer_dividend\"><\/span><strong>Which has the safer dividend?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> In the Coal India vs ITC dividend contest, Coal India has the lower payout ratio of about 47%, while ITC has a more defensive business but a higher payout ratio of about 74% and falling profit.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_dividend_multiplier\"><\/span><strong>What is a dividend multiplier?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> A stock whose dividend is high, covered by earnings and growing, with a stable price, so income and total return compound together in the Coal India vs ITC dividend comparison.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_Vedanta_and_Power_Grid_better\"><\/span><strong>Are Vedanta and Power Grid better?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Vedanta yields more but varies with commodity prices and debt, and Power Grid yields less but is steadier, so they suit different goals than the Coal India vs ITC dividend pair.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_dividends_taxable\"><\/span><strong>Are dividends taxable?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Yes. They are taxed at your slab rate, and 10% TDS may apply when dividends from a company exceed Rs 10,000 in a year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_should_I_buy_Coal_India_or_ITC\"><\/span><strong>Which should I buy, Coal India or ITC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> This article does not constitute investment advice. Consult a SEBI-registered financial advisor.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which pays more, Coal India or ITC?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"In the Coal India vs ITC dividend comparison, Coal India pays Rs 26.50 over 12 months, a yield of about 6.5%, against ITC's Rs 14.50, about 5.7%.\"}},{\"@type\":\"Question\",\"name\":\"What is the Coal India dividend yield?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"About 6.4% to 6.6% on a price of Rs 404 to Rs 413, based on dividends of Rs 26.50 over the last 12 months.\"}},{\"@type\":\"Question\",\"name\":\"What is the ITC dividend yield?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"About 5.4% to 5.7% on Rs 14.50, which rose mainly because the price fell about 30% in FY26 and near-term profit is falling.\"}},{\"@type\":\"Question\",\"name\":\"Which has the safer dividend?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"In the Coal India vs ITC dividend contest, Coal India has the lower payout ratio of about 47%, while ITC has a more defensive business but a higher payout ratio of about 74% and falling profit.\"}},{\"@type\":\"Question\",\"name\":\"What is a dividend multiplier?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A stock whose dividend is high, covered by earnings and growing, with a stable price, so income and total return compound together in the Coal India vs ITC dividend comparison.\"}},{\"@type\":\"Question\",\"name\":\"Are Vedanta and Power Grid better?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Vedanta yields more but varies with commodity prices and debt, and Power Grid yields less but is steadier, so they suit different goals than the Coal India vs ITC dividend pair.\"}},{\"@type\":\"Question\",\"name\":\"Are dividends taxable?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. They are taxed at your slab rate, and 10% TDS may apply when dividends from a company exceed Rs 10,000 in a year.\"}},{\"@type\":\"Question\",\"name\":\"Which should I buy, Coal India or ITC?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"This article does not constitute investment advice. Consult a SEBI-registered financial advisor.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Coal India vs ITC dividend: compare yield, payout, earnings and returns to find the real dividend multiplier, with Vedanta and Power Grid.<\/p>\n","protected":false},"author":35,"featured_media":295538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[10149,3922,1093,10150,10151,4377],"class_list":["post-295539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-coal-india-vs-itc-dividend","tag-dividend-stocks","tag-dividend-yield","tag-payout-ratio","tag-power-grid","tag-vedanta"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["295538"],"rank_math_title":["Coal India vs ITC Dividend: Which Is the Real Multiplier?"],"rank_math_description":["Coal India vs ITC dividend: which is the real dividend multiplier? 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