Top 5 dividend yield funds based on 5-year returns: ICICI Prudential Dividend Yield Fund leads with 19.95% returns
Investors considering equity funds that combine long-term capital appreciation with exposure to companies known for regular dividend payouts may consider dividend yield funds.
These funds primarily invest in stocks with a consistent record of paying dividends, typically from companies with stable earnings, healthy cash flows and established market positions.
Among the schemes in this category, ICICI Prudential Dividend Yield Equity Fund has delivered the highest returns in the past five years. It is followed by LIC MF Dividend Yield Fund and HDFC Dividend Yield Fund, making them the top three performers during this period.
| Fund Name | 5-year Returns | Top 3 Stock Holdings |
| ICICI Prudential Dividend Yield Equity Fund | 19.95% | HDFC Bank, ICICI Bank, and Sun Pharmaceutical |
| LIC MF Dividend Yield Fund | 16.92% | HDFC Bank, Garware Hi-Tech Films, and ICICI Bank |
| HDFC Dividend Yield Fund | 16.20% | HDFC Bank, ICICI Bank, and Axis Bank |
| Tata Dividend Yield Fund | 15.45% | ICICI Bank, Larsen & Toubro, and HDFC Bank |
| Aditya Birla Sun Life Dividend Yield Fund | 14.39% | NTPC, MCX, and SBI |
*CAGR as on 8 July, 2026, Portfolio holdings as on 31 May, 2026, Direct Plans, Source: Value Research
ICICI Prudential Dividend Yield Equity Fund delivered the highest 5-year CAGR of 19.95%, making it the best-performing dividend yield fund among its peers.
LIC MF Dividend Yield Fund secured the second spot with 5-year returns of 16.92%. HDFC Dividend Yield Fund ranked third, posting 5-year returns of 16.20%.
The fourth and fifth spots were taken by Tata Dividend Yield Fund and Aditya Birla Sun Life Dividend Yield Fund, which delivered 5-year returns of 15.45% and 14.39%, respectively.
When comparing the top three stock holdings, HDFC Bank emerged as the most common, featuring in the portfolios of four of the five funds. ICICI Bank was also among the top holdings of four funds, highlighting the banking sector’s strong representation in dividend-focused portfolios.
Beyond these common names, each fund had a few distinct stocks among its top holdings. Sun Pharmaceutical featured among the top three holdings of ICICI Prudential Dividend Yield Equity Fund, while Garware Hi-Tech Films was in the LIC MF Dividend Yield Fund.
Similarly, Larsen & Toubro featured among the top three holdings of the Tata Dividend Yield Fund, while Aditya Birla Sun Life Dividend Yield Fund had a different set of top holdings, including NTPC, MCX and SBI.
Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.
