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

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

List of best dividend paying stocks in India in August 2020

Stock Name	Mkt Cap (Rs. Cr)	Dividend Yield (%)	Price (Prev. Close)	Dividend Payout Ratio (%)	Sector Name
Ashapura Intimates Fashion	3.91	80.65	1.55	5.07	Textiles
Cox & Kings	25.60	68.97	1.50	2.18	Hospitality
High Ground Enterprise	3.45	33.33	0.30	7.21	Capital Goods
Banco Products (India)	595.75	24.01	83.45	186.76	Automobile & Ancillaries
SKIL Infrastructure	90.95	22.99	4.50	8.33	Capital Goods
Vedanta	40,416.27	18.69	108.10	–	Metals & Mining
NLC India	6,385.46	15.33	46.65	67.92	Power
DB Corp	1,363.77	12.83	78.10	63.63	Miscellaneous
Welspun Corp	2,149.69	12.74	82.60	40.67	Metals & Mining
Oil India	10,296.43	11.16	95.85	30.13	Oil & Gas
TV Today Network	1,197.55	11.09	201.20	95.27	Media & Entertainment
PTC India	1,485.96	10.96	49.80	44.29	Power
NIIT	1,341.63	10.55	93.60	10.43	Software & IT Services
Wall Street Finance	16.61	10.45	13.90	–	Finance
IL&FS Investment Managers	92.64	10.17	3.05	–	Finance
Setco Automotive	132.43	10.10	9.65	503.24	Automobile & Ancillaries
SJVN	8,822.39	9.80	22.60	52.22	Power
Jain Irrigation Systems (DVR)	533.35	9.62	10.35	21.57	Plastic Products
Jain Irrigation Systems	533.35	9.62	10.90	21.57	Plastic Products
Balmer Lawrie Investment	868.14	9.59	389.45	78.74	Finance
Hindustan Zinc	79,414.87	8.78	187.80	102.44	Metals & Mining
HUDCO	7,116.76	8.72	36.15	36.33	Finance
Ucal Fuel Systems	236.95	8.40	109.80	43.44	Automobile & Ancillaries
PNB Gilts	649.84	8.31	35.85	28.98	Finance
Lypsa Gems and Jewellery	8.99	8.20	3.15	4.12	Diamond  &  Jewellery
Windsor Machines	85.71	7.58	13.40	–	Capital Goods
NHPC	20,190.52	7.46	20.10	52.42	Power
SREI Infrastructure Finance	339.58	7.41	7.05	5.17	Finance
Engineers India	4,483.41	7.26	69.95	64.23	Capital Goods
Bigbloc Construction	50.05	7.07	37.10	143.94	Real Estate
Balmer Lawrie and Company	1,828.89	7.01	106.40	79.55	Diversified
TAAL Enterprises	44.56	6.99	141.00	17.18	Aviation
Energy Development Company	34.20	6.94	6.85	–	Power
Gujarat Pipavav Port	3,920.70	6.91	81.10	87.58	Logistics
Stanrose Maf. Investment and Finance	35.85	6.64	88.85	–	Finance
Sun TV Network	15,075.71	6.54	382.70	71.13	Media & Entertainment
Bhatia Communications & Retail (India) Ltd.	76.97	6.50	61.50	92.91	Retailing
RITES	6,173.75	6.48	252.45	64.92	Textiles
Menon Bearings	217.44	6.44	39.00	97.31	Automobile & Ancillaries
Swasti Vinayaka Art And Heritage Corporation	12.64	6.33	3.23	53.30	Diversified
Narmada Gelatines	98.79	6.12	161.65	46.97	Chemicals
Power Grid Corporation of India	85,431.86	6.12	163.50	47.30	Power
Golkunda Diamonds and Jewellery	9.27	6.01	13.97	41.33	Diamond  &  Jewellery
Rashtriya Chemicals and Fertilisers	2,609.49	6.00	47.55	120.55	Chemicals
Tide Water Oil	1,426.96	5.95	4,207.50	70.18	Automobile & Ancillaries
Goldiam International	242.48	5.94	108.65	30.73	Diamond  &  Jewellery
Kewal Kiran Clothing	897.76	5.90	731.45	72.57	Textiles
Sarla Performance Fibers	156.57	5.87	18.45	36.24	Textiles
Kilburn Engineering	22.73	5.83	17.05	22.40	Capital Goods
Indo Thai Securities	17.40	5.75	17.50	–	Finance
GPT Infraprojects	76.79	5.68	26.70	29.02	Infrastructure
Tirupati Sarjan	17.49	5.66	5.10	46.58	Real Estate
HSIL	389.68	5.57	54.70	30.96	Construction Materials
National Fertilizers	1,702.31	5.36	34.70	30.92	Chemicals
OnMobile Global	291.98	5.32	28.05	57.49	Software & IT Services
Bharti Infratel	36,640.74	5.30	203.15	77.91	Telecom
Tamil Nadu Newsprint and Papers	783.12	5.30	113.55	31.94	Paper
Pressman Advertising	44.62	5.26	18.80	44.12	Media & Entertainment
Garden Reach Shipbuilders & Engineers	2,364.93	5.25	203.55	75.96	Ship Building
ITC	238,599.30	5.23	192.70	87.35	FMCG
Esab India	2,067.05	5.21	1,346.65	156.32	Capital Goods
United Credit Financial Services	7.20	5.18	13.49	16.83	Finance
Ircon International	4,324.02	5.17	94.50	42.48	Infrastructure
Cyient	3,245.80	5.08	296.75	77.05	Software & IT Services
Conart Engineers	6.25	5.03	19.10	26.36	Infrastructure
Cochin Shipyard	4,402.00	4.97	334.35	34.61	Ship Building
VEDAVAAG Systems	46.88	4.89	19.80	37.11	Software & IT Services
Timken India	7,709.17	4.88	1,049.55	152.82	Automobile & Ancillaries
Kamadgiri Fashion	24.86	4.72	40.25	24.91	Textiles
Empire Industries	320.37	4.68	530.00	43.89	Construction Materials
Gandhi Special Tubes	249.20	4.67	192.20	54.40	Metals & Mining
Castrol India	11,661.75	4.66	117.30	65.75	Automobile & Ancillaries
GMDC	1,372.17	4.63	43.00	31.17	Metals & Mining
Dhampur Sugar Mills	865.36	4.60	129.35	23.57	Agri
Credit Analysis and Research	1,252.10	4.59	424.30	69.75	Miscellaneous
Century Enka	382.17	4.57	175.90	13.79	Textiles
Redington (India)	3,688.55	4.54	95.00	32.47	Trading
Rail Vikas Nigam	4,107.49	4.52	20.05	26.51	Infrastructure
Selan Exploration Technology	168.87	4.50	104.80	15.92	Oil & Gas
Munjal Showa	407.75	4.41	102.05	42.31	Automobile & Ancillaries
Garware Polyester	530.86	4.38	230.75	27.01	Plastic Products
HPCL	34,133.63	4.35	227.10	56.30	Oil & Gas
Joindre Capital	19.11	4.34	13.80	70.87	Finance
Tirupati Foam	15.45	4.28	35.05	24.95	Textiles
HeidelbergCement India	3,968.00	4.28	176.50	63.40	Construction Materials
Mysore Petro Chemicals	31.01	4.25	49.25	27.13	Chemicals
Ester Industries	490.36	4.25	57.55	23.40	Containers & Packaging
Ajmera Realty and Infra India	276.43	4.24	77.35	15.57	Real Estate
IRB Infrastructure Developers	4,171.71	4.21	118.60	–	Infrastructure
Samkrg Pistons and Rings	117.01	4.20	118.70	25.05	Automobile & Ancillaries
Sasken Technologies	735.76	4.09	479.90	144.69	Software & IT Services
Uniply Industries	98.91	4.07	5.90	12.10	Paper
Gujarat Industries Power Co.	1,079.93	4.06	74.60	17.22	Power
Tamilnadu Petroproducts	332.44	4.06	36.90	21.32	Chemicals
JK Paper	1,764.61	4.04	99.25	15.00	Paper
Shreyans Industries	102.72	4.04	74.55	12.98	Paper
Bajaj Auto	86,665.43	4.01	3,002.55	66.62	Automobile & Ancillaries
Modison Metals	122.34	3.98	37.70	29.18	Capital Goods
Amarjothi Spinning Mills	33.95	3.98	50.50	12.40	Textiles
Dynamic Industries	11.57	3.93	40.90	44.76	Chemicals
MOIL	3,620.44	3.93	147.50	57.37	Metals & Mining
GTPL Hathway	862.03	3.91	80.45	36.24	Telecom
Sumedha Fiscal Services	12.38	3.87	15.35	–	Finance
Balasore Alloys	96.78	3.86	10.88	–	Metals & Mining
Divyashakti Granites	39.89	3.86	37.85	20.62	Construction Materials
BDH Industries	41.31	3.83	73.40	32.78	Healthcare
Menon Pistons	59.92	3.83	11.29	52.33	Automobile & Ancillaries
Geojit Financial Services	940.09	3.80	39.00	76.00	Finance
Kesar Terminals and Infrastructure	28.90	3.78	27.25	–	Logistics
Compucom Software	62.90	3.77	8.20	554.48	Software & IT Services
Great Eastern Shipping Company	3,169.33	3.76	224.10	43.83	Logistics
ASM Technologies	33.38	3.75	66.45	100.56	Software & IT Services
Savera Industries	38.29	3.74	32.05	33.46	Hospitality
Cosmo Films	769.55	3.73	404.50	30.99	Containers & Packaging
Manali Petrochemicals	350.02	3.69	20.15	24.00	Chemicals
Bright Brothers	30.99	3.67	55.00	32.88	Plastic Products
Tata Chemicals	7,640.14	3.67	306.30	34.74	Chemicals
Cummins India	10,665.27	3.64	393.05	55.00	Automobile & Ancillaries
Torrent Power	15,326.87	3.64	322.85	78.44	Power
Rubfila International	163.74	3.63	32.95	35.18	Automobile & Ancillaries
Anjani Portland Cement	353.62	3.58	141.25	31.34	Construction Materials
Quick Heal Technologies	717.80	3.58	122.60	34.51	Software & IT Services
NTPC	87,368.94	3.57	87.15	26.87	Power
Sicagen India	55.60	3.56	13.45	549.61	Trading
Hindustan Aeronautics Ltd.	31,340.47	3.55	923.40	37.43	Aviation
Royal Orchid Hotels	155.50	3.53	55.95	41.81	Hospitality
MphasiS	18,605.10	3.51	1,005.45	51.19	Software & IT Services
United Drilling Tools	268.31	3.48	132.65	20.65	Capital Goods
Sagarsoft	24.24	3.44	42.65	35.71	Software & IT Services
Welspun Enterprises	869.05	3.42	59.20	19.94	Real Estate
Jindal Saw	1,868.03	3.41	57.95	7.42	Metals & Mining
Siyaram Silk Mills	606.50	3.40	130.70	20.81	Textiles
Accelya Kale Solutions	1,417.25	3.37	950.95	44.90	Software & IT Services
BSE Limited	2,281.61	3.35	519.65	62.60	Finance
Srikalahasthi Pipes	980.90	3.33	205.80	19.86	Metals & Mining
NCL Industries	340.83	3.32	79.90	22.24	Construction Materials
Phillips Carbon Black	1,837.12	3.28	105.10	42.10	Chemicals
Strides Shasun	3,822.30	3.28	427.55	255.08	Healthcare
Andhra Sugars	830.70	3.26	301.60	14.23	Agri
Hero Motocorp	55,209.43	3.26	2,860.15	49.41	Automobile & Ancillaries
Mazda	123.33	3.25	299.90	24.06	Capital Goods
Lahoti Overseas	27.13	3.23	10.04	5.42	Trading
Radhika Jeweltech	36.58	3.23	15.50	14.03	Diamond  &  Jewellery
Allcargo Logistics	2,278.83	3.23	92.90	33.05	Logistics
Kallam Textiles	26.68	3.21	6.11	12.87	Textiles
Automobile Corporation of Goa	191.85	3.17	315.20	134.05	Automobile & Ancillaries
Baid Leasing and Finance Company	37.82	3.17	32.10	7.76	Finance
Tata Power Company	13,342.68	3.14	49.05	38.24	Power
Welspun India	3,195.03	3.14	31.50	19.80	Textiles
Yash Papers	112.77	3.13	33.30	12.76	Paper
GRM Overseas	59.03	3.13	155.10	20.33	Agri
Rane Brake Linings	430.50	3.13	551.30	42.02	Automobile & Ancillaries
Gujarat Narmada Valley Fertilizers & Chemicals	2,513.12	3.09	163.30	20.41	Chemicals
Magadh Sugar & Energy	182.70	3.09	128.35	6.79	Agri
Sobha	2,145.89	3.09	235.55	23.57	Real Estate
Swasti Vinayaka Synthetics	22.75	3.08	3.37	27.74	Textiles
Kabra Extrusion Technik	155.36	3.08	49.50	64.54	Capital Goods
Lumax Auto Technologies	664.20	3.08	99.90	35.91	Automobile & Ancillaries
TPL Plastech	88.69	3.08	113.45	25.40	Plastic Products
Apar Industries	1,185.18	3.07	309.85	26.90	Capital Goods
Monte Carlo Fashions	339.28	3.06	161.80	16.02	Textiles
VST Industries	5,251.87	3.03	3,346.50	52.30	FMCG
Kalyani Forge	48.17	3.02	132.00	19.20	Metals & Mining
Savita Oil Technologies	933.12	3.02	660.55	29.42	Automobile & Ancillaries
HEG	3,207.09	3.01	819.55	142.69	Capital Goods
LIC Housing Finance	13,421.51	3.01	267.90	16.80	Finance
PTC India Financial Services	966.64	2.99	15.30	26.28	Finance
Sarda Energy and Minerals	602.20	2.99	170.00	14.27	Metals & Mining
Industrial and Prudential Investment Company	146.61	2.98	831.00	17.85	Finance
Damodar Industries	58.72	2.98	25.05	19.95	Textiles
FIEM Industries	578.77	2.96	435.55	19.20	Automobile & Ancillaries
Chemcrux Enterprises	67.48	2.93	150.35	18.55	Chemicals
West Coast Paper Mills	1,130.10	2.92	173.55	8.92	Paper
CMI	51.92	2.89	33.00	3.34	Electricals
Pearl Global Industries	225.31	2.88	103.00	9.66	Textiles
A.K.Capital Services	138.53	2.86	207.00	7.94	Finance
Bharat Electronics	23,878.61	2.86	96.75	37.41	Capital Goods
Tata Steel	39,866.46	2.85	352.40	44.23	Metals & Mining
Ceinsys Tech	98.05	2.83	92.50	12.55	Software & IT Services
Hindustan Composites	261.04	2.83	175.50	70.49	Automobile & Ancillaries
Polychem	18.00	2.81	467.70	16.47	Chemicals
Precision Camshafts	321.53	2.81	33.90	25.53	Automobile & Ancillaries
Gujarat Hotels	33.98	2.79	87.85	22.03	Hospitality
Polyplex Corporation	1,949.46	2.79	616.80	19.28	Plastic Products
Swaraj Automotives	30.22	2.78	130.55	67.20	Automobile & Ancillaries
63 Moons Technologies	332.00	2.78	72.20	–	Software & IT Services
Panasonic Carbon India	173.18	2.77	381.20	28.31	Capital Goods
Oricon Enterprises	284.26	2.76	18.00	21.63	Diversified
Apollo Tyres	6,263.95	2.74	109.75	36.02	Automobile & Ancillaries
KG Denim	70.38	2.73	26.95	22.57	Textiles
Clariant Chemicals India	928.81	2.73	381.40	136.79	Chemicals
Panama Petrochem	267.08	2.72	44.25	25.23	Automobile & Ancillaries
Victoria Mills	18.25	2.70	1,899.95	15.20	Textiles
Bimetal Bearings	99.05	2.70	252.60	246.93	Automobile & Ancillaries
Premco Global	24.67	2.68	74.80	14.40	Textiles
Maharashtra Seamless	1,501.46	2.68	226.45	17.16	Metals & Mining
Petronet LNG	39,480.00	2.66	266.20	38.84	Oil & Gas
Ponni Sugars (Erode)	129.97	2.65	148.70	11.12	Agri
Vinyl Chemicals (India)	165.77	2.65	91.05	58.87	Chemicals

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