4 Largecap Stocks With 1.5-3 Per Cent Dividend Yield to Watch for Future Multibagger Potential: HDFC Bank, SBI, UltraTech Cement and Britannia

Stocks with 1.5-3 per cent dividend yield to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HDFC Bank, SBI, UltraTech Cement and Britannia meet that test, with market caps from Rs 1.18 lakh crore to Rs 11.23 lakh crore and HDFC Bank offering the largest market cap at Rs 11,22,628 crore. Each of these companies has a dividend yield between 1.5 and 3 per cent, and net profit grew in FY26 and in the latest quarter.

This list covers companies with a dividend yield between 1.5 and 3 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 1.5-3 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 1.5-3 Per Cent Dividend Yield and Why Do They Attract Multibagger Interest?

Stocks with 1.5-3 per cent dividend yield are shares that pay a regular dividend while the business keeps growing. The four here cover private banking, public banking, cement and packaged food.

A moderate yield with rising profit lets investors earn income without giving up growth. For stocks with 1.5-3 per cent dividend yield, dividend yield changes with the share price, so check it again before investing. With stocks with 1.5-3 per cent dividend yield, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for stocks with 1.5-3 per cent dividend yield are complete. Read each company's latest results and exchange filings before acting on stocks with 1.5-3 per cent dividend yield.

Stocks With 1.5-3 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. SBI has the lowest PE of the group at 9.82, while Britannia posts the highest return on equity at 49.61%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
HDFC Bank	712	11,22,628	13.61	11.94	13.14%	1.87	681.90 to 1,020.50
State Bank of India	973.70	8,80,754	9.82	12.05	14.29%	1.50	877.05 to 1,234.70
UltraTech Cement	10,650	3,16,676	36.95	29.41	10.66%	4.13	10,325.00 to 13,110.00
Britannia Industries	4,705	1,18,269	45.31	34.68	49.61%	23.16	4,705.00 to 6,271.00

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%.

SBI: 23.72% Profit CAGR Since FY22

State Bank of India is the country's largest lender, with a branch network that reaches every part of India. It reported FY26 total income of Rs 7,12,643.53 crore, up 7.43% year on year, and net profit of Rs 85,168.47 crore, up 7.78%. Net profit has compounded at 23.72% a year since FY22, while total income has grown 15.03% a year.

The stock trades at a PE of 9.82 against an industry PE of 12.05, below the sector average, with a return on equity of 14.29%. The dividend yield is 1.82%. In the June 2026 quarter, total income rose 7.83% to Rs 1,80,061.86 crore and net profit grew 13.65% to Rs 24,579.04 crore. The share price has gained 92.86% over five years. Foreign investors raised their holding from 9.98% in July 2025 to 10.81% in June 2026.

UltraTech Cement: Profit Compounding at 3.36% a Year

UltraTech Cement is the largest cement producer in India by capacity, with plants and grinding units across the country. It reported FY26 revenue of Rs 89,089.04 crore, up 16.15% year on year, and net profit of Rs 8,188.35 crore, up 35.58%. Revenue has compounded at 13.81% a year since FY22. Operating margin was 19.71% in FY26. The debt-to-equity ratio is 0.31.

In the June 2026 quarter, revenue rose 15.49% to Rs 24,778.47 crore and net profit grew 17.24% to Rs 2,603.72 crore. Domestic institutions raised their holding from 16.65% in September 2025 to 20.86% in September 2026. The stock trades at a PE of 36.95 against an industry PE of 29.41. The dividend yield is 2.23%.

Britannia: Return on Equity of 49.61%

Britannia Industries is one of the largest biscuit and bakery companies in India, with brands such as Good Day and Marie Gold. It reported FY26 revenue of Rs 19,375.62 crore, up 6.64% year on year, and net profit of Rs 2,537.01 crore, up 16.49%. Net profit has compounded at 13.74% a year since FY22, while revenue has grown 7.78% a year. Operating margin was 19.52% in FY26. The debt-to-equity ratio is 0.27.

The stock trades at a PE of 45.31 against an industry PE of 34.68, with a return on equity of 49.61%. The dividend yield is 1.84%. In the June 2026 quarter, revenue rose 8.17% to Rs 5,061.38 crore and net profit grew 14.08% to Rs 593.38 crore. Domestic institutions raised their holding from 18.66% in June 2025 to 20.93% in June 2026.

Stocks With 1.5-3 Per Cent Dividend Yield: Financial Comparison on Growth and Margins

The table compares scale and growth across these stocks with 1.5-3 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	Total Income (Rs Cr)	Net Profit (Rs Cr)	Income Growth (YoY)	4-Year Income CAGR	4-Year Net Profit CAGR
HDFC Bank	4,95,462.81	79,219.46	5.21%	31.11%	20.04%
SBI	7,12,643.53	85,168.47	7.43%	15.03%	23.72%
UltraTech Cement	89,089.04	8,188.35	16.15%	13.81%	3.36%
Britannia	19,375.62	2,537.01	6.64%	7.78%	13.74%

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Institutional Holding in HDFC Bank, SBI, UltraTech Cement and Britannia

Institutional holding shows who is backing these stocks with 1.5-3 per cent dividend yield 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%), UltraTech Cement (from 16.65% to 20.86%) and Britannia (from 18.66% to 20.93%).

Stock	Promoter	FII	DII	Public	Quarter
HDFC Bank	Nil	39.40%	43.63%	16.97%	September 2026
SBI	55.47%	10.81%	26.64%	7.08%	June 2026
UltraTech Cement	58.48%	12.69%	20.86%	7.97%	September 2026
Britannia	50.55%	13.40%	20.93%	15.13%	June 2026

Risks to Weigh in Stocks With 1.5-3 Per Cent Dividend Yield

Being careful with stocks with 1.5-3 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: Britannia trades at a PE of 45.31 against an industry PE of 34.68, 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 1.5-3 Per Cent Dividend Yield

Picking from stocks with 1.5-3 per cent dividend yield comes down to four checks, applied in order.

1. Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
2. Compare each PE with the industry PE (11.94 to 34.68) and ask whether the growth rate justifies any gap.
3. Track net profit growth, the operating margin and the return on equity in every quarterly result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among stocks with 1.5-3 per cent dividend yield, HDFC Bank stands out for the largest market cap at Rs 11,22,628 crore, SBI for the fastest profit growth, 23.72% a year since FY22, UltraTech Cement for the strongest latest-quarter profit growth at 17.24% and Britannia for the highest return on equity at 49.61%. 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 1.5-3 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.

Frequently Asked Questions on Stocks With 1.5-3 Per Cent Dividend Yield to Watch

Which are the best stocks with 1.5-3 per cent dividend yield to watch for multibagger potential?

Ans. HDFC Bank, SBI, UltraTech Cement and Britannia are the 4 names this list highlights, with market caps of Rs 11,22,628 crore, Rs 8,80,754 crore, Rs 3,16,676 crore and Rs 1,18,269 crore respectively. HDFC Bank is notable for the largest market cap at Rs 11,22,628 crore. SBI stands out for the fastest profit growth, 23.72% a year since FY22. UltraTech Cement offers the strongest latest-quarter profit growth at 17.24%. Britannia brings the highest return on equity at 49.61%. These are watchlist names for stocks with 1.5-3 per cent dividend yield, not recommendations, so match each one to your own risk profile and time horizon.

Is Britannia a good stock for long-term investors?

Ans. Britannia has a return on equity of 49.61%, a PE of 45.31 against an industry PE of 34.68 and a market cap of Rs 1,18,269 crore. Net profit has compounded at 13.74% a year since FY22, and FY26 revenue rose 6.64% while June 2026 quarter net profit grew 14.08%. Long-term returns in stocks with 1.5-3 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 SBI become a multibagger from here?

Ans. SBI has already gained 92.86% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with 1.5-3 per cent dividend yield requires earnings to keep growing faster than the market for several years. Net profit has compounded at 23.72% a year since FY22, and FY26 revenue rose 7.43%. At a PE of 9.82 against an industry PE of 12.05, valuation should be checked against that growth before investing.

What is the market cap of HDFC Bank, SBI, UltraTech Cement and Britannia?

Ans. As of 20 October 2026, HDFC Bank has a market cap of Rs 11,22,628 crore, SBI has a market cap of Rs 8,80,754 crore, UltraTech Cement has a market cap of Rs 3,16,676 crore and Britannia has a market cap of Rs 1,18,269 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 1.5-3 per cent dividend yield.

What are the risks of investing in stocks with 1.5-3 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. Britannia trades at a PE of 45.31 against an industry PE of 34.68, so earnings growth needs to hold up.

Why is Britannia trading at a PE of 45.31?

Ans. Britannia's PE of 45.31 compares with an industry PE of 34.68. The market is paying a premium for a return on equity of 49.61%, profit growth of 13.74% a year since FY22 and latest-quarter profit growth of 14.08%, which also means the stock is more sensitive if growth slows. Investors in stocks with 1.5-3 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 HDFC Bank, SBI, UltraTech Cement and Britannia?

Ans. As of the latest reported quarter, FII and DII together hold 83.03% of HDFC Bank (39.40% and 43.63%), 37.45% of SBI (10.81% and 26.64%), 33.55% of UltraTech Cement (12.69% and 20.86%) and 34.33% of Britannia (13.40% and 20.93%). Rising institutional holding is a useful signal in stocks with 1.5-3 per cent dividend yield, though it should be read with earnings trends rather than on its own.