Best dividend paying stocks in India 2020

Best dividend paying stocks in India

Last Updated on 2 weeks ago by Raj Kumar

Best dividend paying stocks in India 2020

Let’s have a look at different aspects of when does a company pays dividends, which companies are paying dividends in India, and should you invest in a company just because it pays good dividends?

When does a company pay a dividend?

A company announces dividends after the company board approves. Generally, many companies pass on the profits of the company in terms of dividends to its shareholders if they feel it’s the best use of the

cash.

Although paying a dividend is good but some times it’s considered as the inability of the company to do CAPEX. As you can’t paint every stock with the same brush, dividend yardstick doesn’t hold true for most of the companies.

For example; most of the PSU companies in India are forced to pay dividends because Govt is the major stakeholder in the company and Govt wants to get money from the PSUs. So PSUs are most of the time the Best dividend paying stocks in India but they are not always the best companies to invest in.

Also, some tech companies pay good dividends but that doesn’t mean that they are not looking for CAPEX. it’s just that their business model is different.

Consider reading – What is Penny stock? – List of penny stock in India

Best dividend paying stocks in India
Best dividend paying stocks in India

Have a look at all famous investor’s portfolios here:-

Radhakishan Damani Portfolio

Porinju Veliyath portfolio

Vijay Kedia stocks portfolio

Nemish Shah stocks portfolio

Mohnish Pabrai Stocks Portfolio

Ashish Kacholia stocks portfolio

Full list of best / highest dividend paying stocks in India in December 2020

Stock nameSECTOR – INDUSTRYPriceMarket Cap(Rs Cr.)DIVIDEND YIELD(%)
Technofab EngProject Consultancy
/Turnkey
9.71020.62
UFO MoviezFilm/TV Production 
& Distribution
80.8522918.55
Manaksia LtdPackaging – 
Metallic/Plastics/Others
63.5541616.52
Ibull HousingFinNBFC – Housing194.859,00915.91
Weizmann LtdTextiles – Processing
/Texturising
65.611315.24
Banco ProductsAuto Ancl – Engine Parts1461,04413.7
MPS LtdPrint Media372.269313.43
NLC India Power Generation – Thermal57.67,98712.26
DB CorpPrint Media881,54011.36
IL&FS InvestBroking & Allied Services5.3516811.21
TV Today NetworkTV Broadcasting & 
Software Production
216.851,29410.26
Oil India LtdOil Drilling And Exploration112.512,2009.42
PTC IndiaPower – Trading & 
Allied Services
61.951,8348.88
HPCLOil Refining & Marketing226.534,5158.83
SJVNPower Generation – Hydro2610,2178.46
Coal India LtdMining/Minerals142.988,0658.4
IDFCTerm Lending – General39.56,3067.97
Welspun CorpSteel – Tubes/Pipes131.93,4417.96
PFCTerm Lending – Power120.5531,8267.88
HUDCONBFC – Housing39.47,8877.87
SKF IndiaAuto Ancl – Bearings1,655.208,1837.85
RECTerm Lending – Power140.1527,6787.85
PNB GiltsBroking & Allied Services43.557846.89
Hindustan ZincMetals – Non Ferrous – 
Copper/Zinc/Alloys – Products
243.05102,6966.79
NHPCPower Generation – Hydro22.3522,4516.71
Engineers IndiaProject Consultancy/Turnkey76.84,8536.71
Sintex Inds.Textiles – General3.752236.67
Uniply IndLaminates/Plywood/Boards3.7626.49
Balmer LawrieDiversified116.31,9896.45
The Andhra Sugars Diversified314.458526.36
Global EducationCoaching/Study Material
/Schools
63.9656.26
P&G HealthPharma – MNC6,688.4511,1026.25
PfizerPharma – MNC5,345.0024,4526.17
Gujarat PipavavPort Operator92.74,4816.04
Rites Ltd.Project Consultancy/Turnkey268.16,7035.97
Oracle FinIT Consulting & Software – 
Mid Cap
3,125.9526,8815.76
Sonata SoftwareIT Consulting & Software – 
Mid Cap
353.53,7175.73
PTL EnterprisesHolding – Diversified43.82905.71
Mazagon Dock ShipDefence Contractor189.653,8255.68
Tata Steel (PP)Steel – Integrated177.421,3615.64
RKEC ProjectsConstruction & Contracting35.5855.63
Tide Water OilLubricants4,458.101,5545.61
NIITIT Training Services182.42,5865.48
BPCLOil Refining & Marketing404.8587,8225.35
Ircon Int.Construction & Engineering90.24,2425.27
Kewal Kiran CloRetail – Apparel/Accessories824.951,0175.21
TN NewsprintPaper Manufacturer115.858025.18
PowerGridPower – Transmission193.5101,2315.17
Sun TVTV Broadcasting & 
Software Production
48419,0745.17
SaskenTechIT Consulting & Software – 
Small Cap
780.451,1755.13
Rash Chem FertFertilisers55.653,0705.1
Menon BearingsAuto Ancl – Bearings492755.1
GAILGas Distribution125.8556,7605.09
ONGCOil Drilling And Exploration100.1125,9295
Rail Vikas NigamConstruction & Contracting23.14,8164.94
Worth PeripheralsPackaging – Metallic/Plastics
/Others
46724.89
Energy Deve CoPower Generation – Hydro10.25494.88
Focus LightingElectric Equipment/
Components/Services
20.8214.81
Kuantum PapersPaper Manufacturer52.254564.78
Srikalahasthi PipesSteel – Tubes/Pipes1486914.73
ITCCigarettes216.5266,4044.69
Cochin ShipyardDefence Contractor359.34,7264.63
Indo Thai SecFinancial Services – Misc21.65224.62
NMDCMining/Minerals115.1535,2574.59
Sanwaria Consumer Agro Processing – Others1.651214.55
Timken IndiaCapital Goods – Railway1,109.708,3474.51
Esab India LtdWelding Consumables 
& Equipment
1,581.002,4344.43
Ingersoll-RandEngineering – General632.451,9974.43
Indian Oil CorpOil Refining & Marketing96.0590,4234.42
IRB Infra DevInfrastructure – Roads/Tolls113.053,9734.42
Sanofi IndiaPharma – MNC7,999.9018,4244.36
Steel City SecuritieFinancial Services – Misc34.6524.34
Pressman AdvertisinMedia – Others23.35554.28
IIFL SecuritiesBroking & Allied Services471,5024.26
Castrol IndiaLubricants13012,8594.23
Madhya Pradesh TodayPrint Media11.8554.22
Orbit ExportsTextiles – Weaving71.451964.2
Bharti InfratelTelecommunications – 
Allied Services
251.246,4624.18
Phillips CarbonCarbon Black168.52,9044.15
ShrenikTrading5.15533.88
JK PaperPaper Manufacturer103.21,7593.88
Visaka IndCement Products387.86243.87
Century EnkaTextiles – Manmade Fibre – 
PFY/PSF
206.954523.87
Alphageo  Oil Drilling And Exploration 
Services
2071323.86
Goldiam IntnlDiamond Cutting/Precious 
Metals/
Jewellery
168.453743.86
MOILMining/Minerals143.053,3953.84
Gateway DistriWarehousing/Supply Chain/
Road Transport
117.551,4673.83
HALDefence Contractor869.929,0883.82
IIFL FinanceNBFC – Diversified118.154,4713.81
Gandhi SpecialSteel – Tubes/Pipes237.83073.78
GMDCMining/Minerals53.21,6923.76
Manugraph IndiaEngineering – Others13.45413.72
CARE Ratings Rating Agency525.751,5493.71
Oricon EnterprDiversified21.83423.67
Bajaj AutoAuto – 2 & 3 Wheelers3,288.6595,1633.65
Heidelberg CemCement – Pan India2074,6913.62
Control PrintComputers – Accessories/
Peripherals
221.453623.61
Selan Expl TechOil Drilling And Exploration138.452103.61
Trident LtdTextiles – Furnishings/
Terry Towels
105,0963.6
Garden Reach ShipShipping – Allied Services198.42,2733.6
highest dividend paying stocks in India

Although it’s good to keep an eye on stocks paying high dividends but it’s always not necessary that the best dividend paying stocks are the best stocks to invest.

You have to be very careful in selecting a stock to invest in. You shouldn’t pick a stock just because it has given excellent dividends in the past.

Most of the stocks from the above list have given great dividends in the past but have failed to generate any shareholder returns.

Like the post? why not share it with your friends! Also, consider reading – Blue chip stocks india and   Zero debt companies in India

For all latest information on dividend announcement, you can check the NSE website

Is it good to invest in high dividend stocks?

Best dividend paying stocks are not always the best stocks to invest in. India, PSU stocks pay huge dividends but the returns of the shares of the PSU companies are not the best.

So Best dividend paying stocks are not always the best stock to invest in

What are the top 5 best dividend paying stocks in India?

Some of the companies which are highest dividend paying stocks in India 2020:-

Vedanta
NLC India
Oil India
NIIT
Cochin Shipyard

Newsletter Updates

Enter your email address below to subscribe to our newsletter

Leave a Reply

error: Content is protected !!

Join our mailing list to receive latest updates and newsletters!

You have successfully subscribed to our blog!

There was an error while trying to send your request. Please try again.

We Invest Smart will use the information you provide on this form to be in touch with you and to provide updates and marketing.