Last Updated on 2 months ago by Raj Kumar
List of highest / best dividend paying stocks in India 2022
Let’s have a look at different aspects of when a company pays dividends, which companies are paying dividends in India, and should you invest in a company just because it pays good dividends?
Page Contents
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 their shareholders if they feel it’s the best use of the cash.
Although paying a dividend is good but at times it’s considered as the inability of the company to do CAPEX. As you can’t paint every stock with the same brush, the dividend yardstick doesn’t hold true for most 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 / highest 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
10 stocks with highest share price in India
Full list of best / highest dividend-paying stocks in India in 2022
Here is the list of the highest dividend-paying stocks in India in May 2022
| COMPANY / STOCK | SECTOR – INDUSTRY | Price | Market Cap | DIVIDEND YIELD(%) |
| ITC | Cigarettes | 266.65 | 328,600 | 4.03 |
| HCL Tech | IT Consulting & Software | 1,050.20 | 284,989 | 4 |
| Power Grid | Power – Transmission | 238.4 | 166,295 | 5.03 |
| NTPC | Power Generation – Thermal | 159 | 154,177 | 3.87 |
| Vedanta | Diversified | 360.4 | 133,968 | 12.49 |
| Hindustan Zinc | Metals – Non-Ferrous – Copper/Zinc/Alloys – Products | 304.8 | 128,788 | 5.91 |
| Tech Mahindra | IT Consulting & Software | 1,290.75 | 125,439 | 3.49 |
| Indian Oil Corp. | Oil Refining & Marketing | 126.25 | 118,854 | 9.5 |
| Coal India Ltd | Mining/Minerals | 187.4 | 115,490 | 8.54 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,499.75 | 101,271 | 4 |
| BPCL | Oil Refining & Marketing | 357.3 | 77,507 | 6.06 |
| GAIL | Gas Distribution | 160.2 | 71,135 | 3.12 |
| Indus Towers | Telecommunications – Allied Services | 198.9 | 53,602 | 10.12 |
| NMDC | Mining/Minerals | 152.45 | 44,677 | 5.09 |
| HPCL | Oil Refining & Marketing | 268.7 | 38,116 | 7.44 |
| SAIL | Steel – Integrated | 89.9 | 37,133 | 3.11 |
| Schaeffler India | Bearings | 2,288.20 | 35,765 | 3.5 |
| NHPC | Power Generation – Hydro | 33.75 | 33,902 | 4.74 |
| Power Finance Corp. | Term Lending – Power | 112.75 | 29,767 | 8.87 |
| Indian Railway Finance Corporation Ltd. | Term Lending – Railways | 21.7 | 28,359 | 4.84 |
| REC | Term Lending – Power | 122.55 | 24,203 | 10.37 |
| Nippon Life AMC | AMC | 294.25 | 18,303 | 3.74 |
| NALCO | Aluminium | 98.6 | 18,109 | 3.55 |
| ICICI Securities | Broking & Allied Services | 509.9 | 16,453 | 4.71 |
| Sanofi India | Pharma – MNC | 6,862.85 | 15,806 | 7.14 |
| NLC India | Power Generation – Thermal | 82 | 11,370 | 3.05 |
| SJVN | Power Generation – Hydro | 28.4 | 11,161 | 7.75 |
| Vardhman Textiles | Textiles – Integrated | 385.5 | 11,136 | 4.54 |
| CESC | Power – Integrated | 83.5 | 11,069 | 53.89 |
| Redington | IT Networking Equipment | 138.3 | 10,808 | 8.39 |
| Castrol India | Lubricants | 105.55 | 10,440 | 5.21 |
| Polyplex Corp. | Packaging – Metallic/Plastics/Others | 2,499.70 | 7,847 | 6.56 |
| Saregama India | Media – Others | 395.1 | 7,618 | 7.59 |
| Mahanagar Gas | Gas Distribution | 763.95 | 7,546 | 3.01 |
| Tata Investment | Holding – Diversified | 1,471.05 | 7,443 | 3.74 |
| P&G Health | Pharma – MNC | 4,326.40 | 7,182 | 3 |
| Vaibhav Global | Jewellery Retail | 420.15 | 6,890 | 5.95 |
| Ibull Housing Fin | NBFC – Housing | 146.6 | 6,869 | 6.14 |
| Sonata Software | IT Consulting & Software | 645.65 | 6,790 | 3.25 |
| HUDCO | NBFC – Housing | 33.9 | 6,786 | 6.42 |
| Rail Vikas Nigam | Construction & Contracting | 32.4 | 6,755 | 4.88 |
| Rites | Project Consultancy/Turnkey | 259.25 | 6,230 | 5.01 |
| Godawari Power | Steel – Sponge Iron | 379.15 | 5,344 | 4.88 |
| Rashtriya Chemicals | Fertilisers | 90.8 | 5,009 | 3.28 |
| VST Industries | Cigarettes | 3,183.70 | 4,916 | 4.4 |
| Heidelberg Cement | Cement – Pan India | 189.9 | 4,303 | 4.21 |
| Cochin Shipyard | Defence Contractor | 322.85 | 4,247 | 4.8 |
| Gujarat Pipavav | Port Operator | 83.75 | 4,049 | 5.37 |
| Hinduja Global | IT Enabled Services | 959.35 | 4,010 | 4.17 |
| Ircon Intl. | Construction & Engineering | 40.05 | 3,767 | 7.49 |
| MOIL | Mining/Minerals | 171.7 | 3,494 | 3.2 |
| Engineers India | Project Consultancy/Turnkey | 61.9 | 3,479 | 3.23 |
| Techno Electric | Capital Goods – Others | 302.15 | 3,324 | 3.31 |
| PTC India | Power – Trading & Allied Services | 88.85 | 2,630 | 8.44 |
| IIFL Securities | Broking & Allied Services | 79.95 | 2,430 | 3.75 |
| Bajaj Consumer Care | Personal Care | 161.8 | 2,387 | 6.18 |
| Gulf Oil India | Lubricants | 415.75 | 2,038 | 3.85 |
| Goodyear India | Tyres & Tubes | 882.05 | 2,035 | 20.18 |
| Phillips Carbon | Carbon Black | 107.2 | 2,023 | 4.66 |
| The Andhra Sugars | Diversified | 148.9 | 2,018 | 6.72 |
Although it’s good to keep an eye on stocks paying high dividends it’s always not necessary that the best dividend-paying stocks are the best stocks to invest in.
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.
Have a look at all famous investor’s portfolios here:-
Mohnish Pabrai Stocks Portfolio
Ashish Kacholia stocks portfolio
Most of the stocks from the above list have given great dividends in the past but have failed to generate any shareholder returns.
For all the latest information on dividend announcements, you can check the NSE website
FAQ on the best dividend paying stocks in India
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 inWhat are the top 5 best dividend-paying stocks in India?
Some of the companies which are the best / highest dividend-paying stocks in India 2022:-
Vedanta
NLC India
Oil India
NIIT
Cochin ShipyardWhat are the best dividend-paying stocks for the long term in India?
If you are a long-term investor then you should look at companies which give dividends consistently. Some of the companies which are the best dividend-paying stocks and good investment options for the long term are as below
1. P&G Health
2. Pfizer
3. Oracle
4. Sanofi India
5. Hero MotoCorp
