This post was most recently updated on October 8th, 2022
Let’s have a look at different aspects of when a company pays dividends, the best dividend paying stocks in India, and whether 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 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 top / best dividend paying stocks in India in 2022
Here is the list of the best dividend paying stocks in India in October 2022
| COMPANY | SECTOR – INDUSTRY | Price Rs | Market CAP(Rs Cr.) | DIVIDEND YIELD(%) |
| ITC | Cigarettes | 336.65 | 410,668 | 3.42 |
| HCL Tech | IT Consulting & Software – Large Cap | 964.55 | 256,713 | 4.35 |
| ONGC | Oil Drilling And Exploration | 132.65 | 168,450 | 7.92 |
| NTPC | Power Generation – Thermal | 162.9 | 157,619 | 4.3 |
| Power Grid | Power – Transmission | 206.3 | 145,403 | 7.15 |
| Coal India Ltd | Mining/Minerals | 233.5 | 137,583 | 7.28 |
| Tata Steel | Steel – Integrated | 103.55 | 123,558 | 49.25 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 284.55 | 115,077 | 6.33 |
| Vedanta | Diversified | 292.4 | 103,766 | 15.39 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,594.65 | 103,582 | 3.89 |
| Tech Mahindra | IT Consulting & Software – Large Cap | 1,031.30 | 100,009 | 4.36 |
| BPCL | Oil Refining & Marketing | 312.15 | 67,561 | 6.94 |
| Indian Oil Corp. | Oil Refining & Marketing | 67.75 | 63,357 | 16.83 |
| GAIL | Gas Distribution | 87.55 | 57,368 | 11.42 |
| Indus Towers | Telecommunications – Allied Services | 200.95 | 54,276 | 5.47 |
| Hero MotoCorp | Auto – 2 & 3 Wheelers | 2,646.10 | 52,388 | 3.59 |
| NMDC | Mining/Minerals | 132.9 | 38,010 | 11.09 |
| NHPC | Power Generation – Hydro | 37.95 | 38,573 | 4.77 |
| SAIL | Steel – Integrated | 82.45 | 32,879 | 10.61 |
| HPCL | Oil Refining & Marketing | 221.6 | 31,031 | 9.03 |
| Indian Railway Finance Corporation Ltd. | Term Lending – Railways | 21.4 | 27,901 | 6.54 |
| Power Finance Corp. | Term Lending – Power | 105.65 | 27,721 | 11.36 |
| Oracle | IT Consulting & Software – Mid Cap | 3,038.55 | 25,862 | 6.25 |
| REC | Term Lending – Power | 95.5 | 24,660 | 16.02 |
| GSK Pharma | Pharma – MNC | 1,408.65 | 23,803 | 6.39 |
| Bata India | Leather – Footwear/Accessories | 1,800.80 | 23,361 | 3.03 |
| Bayer Cropsc. | Pesticides/Agro Chem | 4,855.55 | 21,954 | 3.09 |
| Piramal Ent. | Diversified | 857.75 | 20,703 | 3.85 |
| Oil India Ltd | Oil Drilling And Exploration | 187 | 19,942 | 7.62 |
| Nippon Life AMC | AMC | 272.25 | 16,873 | 4.04 |
| ICICI Securities | Broking & Allied Services | 517.2 | 16,663 | 4.64 |
| Sanofi India | Pharma – MNC | 5,890.30 | 13,781 | 8.32 |
| NALCO | Aluminium | 72.75 | 13,013 | 8.93 |
| SJVN | Power Generation – Hydro | 32.85 | 13,008 | 5.18 |
| Redington | IT Networking Equipment | 145.45 | 11,304 | 4.54 |
| Castrol India | Lubricants | 112.4 | 11,058 | 4.89 |
| CESC | Power – Integrated | 80.25 | 10,459 | 5.61 |
| Akzo Nobel | Paints/Varnishes | 2,209.65 | 9,986 | 3.39 |
| Vardhman Textiles | Textiles – Integrated | 337.2 | 9,697 | 10.08 |
| NLC India | Power Generation – Thermal | 69.15 | 9,755 | 4.34 |
| Cyient | IT Consulting & Software – Mid Cap | 798.8 | 8,663 | 3 |
| Rites | Project Consultancy/Turnkey | 347.95 | 8,293 | 4.89 |
| Mahanagar Gas | Gas Distribution | 827.55 | 8,135 | 3.02 |
| Rail Vikas Nigam | Construction & Contracting | 36.3 | 7,475 | 5.56 |
| Firstsource | IT Enabled Services | 106.15 | 7,329 | 3.3 |
| HUDCO | NBFC – Housing | 36.2 | 7,227 | 9.67 |
| Sonata Software | IT Consulting & Software – Mid Cap | 513.05 | 7,015 | 4.09 |
| Cochin Shipyard | Defence Contractor | 507.8 | 6,533 | 3.3 |
| Vaibhav Global | Jewellery Retail | 368.65 | 6,067 | 8.14 |
| Polyplex Corp. | Packaging – Metallic/Plastics/Others | 1,889.45 | 5,941 | 5.5 |
| Hinduja Global | IT Enabled Services | 1,312.50 | 5,557 | 18.67 |
| Rashtriya Chemicals | Fertilisers | 98.25 | 5,233 | 3.92 |
| VST Industries | Cigarettes | 3,330.25 | 5,072 | 4.2 |
| Phillips Carbon | Carbon Black | 131.3 | 4,816 | 3.81 |
| HEG | Electrodes – Graphite | 1,186.15 | 4,125 | 3.37 |
| Guj Mineral Dev. | Mining/Minerals | 142.75 | 4,417 | 3.01 |
| Gujarat Pipavav | Port Operator | 90.2 | 4,278 | 4.43 |
| Heidelberg Cement | Cement – Pan India | 190.6 | 4,316 | 4.72 |
| Ircon Intl. | Construction & Engineering | 41.9 | 3,814 | 5.97 |
| PDS Multi&Fash | Miscellaneous | 300.25 | 3,871 | 7.94 |
| Godawari Power | Steel – Sponge Iron | 276.65 | 3,879 | 3.98 |
| Engineers India | Project Consultancy/Turnkey | 65.05 | 3,648 | 4.61 |
| Gateway Distriparks Ltd. | Others | 69.5 | 3,473 | 7.19 |
| MOIL | Mining/Minerals | 154.25 | 3,090 | 3.57 |
| Nava Bharat Vent. | Diversified | 194.8 | 2,740 | 3.08 |
| Kewal Kiran Clo | Retail – Apparel/Accessories | 434.7 | 2,596 | 4.37 |
| Goodyear India | Tyres & Tubes | 1,044.85 | 2,395 | 9.57 |
| Cosmo Films | Packaging – Metallic/Plastics/Others | 880.9 | 2,395 | 3.97 |
| Bajaj Consumer Care | Personal Care | 158.7 | 2,308 | 5.04 |
| Puravankara | Real Estate | 94.9 | 2,247 | 5.27 |
| DB Corp. | Print Media | 125.85 | 2,226 | 3.97 |
| IIFL Securities | Broking & Allied Services | 69.6 | 2,069 | 4.31 |
| Savita Oil Tech | Lubricants | 304.6 | 2,060 | 8.21 |
| Swaraj Engines | Engines | 1,630.50 | 1,948 | 4.91 |
| Balmer Lawrie | Diversified | 112.55 | 1,913 | 5.78 |
| MSTC Ltd. | Trading | 267.2 | 1,865 | 4.83 |
| Tide Water Oil | Lubricants | 1,051.20 | 1,777 | 5.23 |
| Accelya Solutions | IT Consulting & Software – Small Cap | 1,108.10 | 1,704 | 5.6 |
| INEOS Styrolution | Petrochem – Polymers | 875 | 1,524 | 33.94 |
| CARE Ratings | Rating Agency | 512.2 | 1,500 | 3.32 |
| Goldiam Intnl | Diamond Cutting/Precious Metals/Jewellery | 130.9 | 1,352 | 4.58 |
| Indian Metals | Metals – Ferrous – Others | 249.65 | 1,332 | 5.01 |
| Kalyani Steels | Steel – Rolling | 305.95 | 1,313 | 3.27 |
| Banco Products | Auto Ancl – Engine Parts | 179.8 | 1,316 | 11.12 |
| SaskenTech | IT Consulting & Software – Small Cap | 827.45 | 1,232 | 3.02 |
| Geojit Financial | NBFC – Diversified | 49.65 | 1,149 | 6.04 |
| MPS Ltd | Print Media | 658.1 | 1,086 | 4.56 |
| PNB Gilts | Broking & Allied Services | 62.2 | 1,120 | 8.04 |
| Saksoft Ltd | IT Consulting & Software – Small Cap | 101.95 | 1,073 | 5.89 |
| Precision Wires | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 89.4 | 1,000 | 7.27 |
| Shree Digvijay | Cement – North | 68.4 | 966 | 5.12 |
| Clariant Chem | Chemicals – Diversified | 425.7 | 965 | 3.52 |
| Uniphos Enter | Trading | 130.65 | 921 | 4.32 |
| Salasar Techno Engg | Industrial Consumable – Others | 29.8 | 857 | 3.36 |
| SMC Global Securities Ltd. | Broking & Allied Services | 79.95 | 824 | 3 |
| Allsec Tech | IT Enabled Services | 499.5 | 749 | 9.01 |
| GIC Housing Fin | NBFC – Housing | 133.1 | 724 | 3.38 |
| Cheviot Company | Jute/Jute Yarn/Jute Products | 1,181.25 | 687 | 5.08 |
| DCM Shriram Ind | Sugar | 81.65 | 689 | 9.19 |
| Eldeco Housing | Real Estate | 588 | 582 | 6.8 |
| Indraprastha Med | Hospital | 62 | 563 | 4.03 |
| Oricon Enterpr | Diversified | 31.35 | 474 | 3.19 |
| Vardhman Acryl | Textiles – Manmade Fibre – Acrylic Fibre | 52.8 | 421 | 47.35 |
| Indo Borax Chem | Chemicals – Inorganic – Others | 130.15 | 418 | 7.68 |
| Sarla Perform | Textiles – Processing/Texturising | 48.9 | 394 | 4.09 |
| PTL Enterprises | Holding – Diversified | 30.6 | 407 | 6.54 |
| Munjal Showa | Auto Ancl – Shock Absorber | 100.5 | 396 | 4.48 |
| Mawana Sugars | Sugar | 81.2 | 300 | 3.69 |
| IL&FS Invest | Broking & Allied Services | 8.4 | 267 | 4.76 |
| Renaissance Global | Diamond Cutting/Precious Metals/Jewellery | 113.9 | 217 | 7.46 |
| Indian Card Clothing | Capital Goods – Textiles | 209.8 | 124 | 11.92 |
| Steel City Securities | Financial Services – Misc | 59.85 | 91 | 5.01 |
| Sanwaria Consumer | Agro Processing – Others | 0.85 | 59 | 8.82 |
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 highest / best dividend paying stocks in India 2022:-
Vedanta
NLC India
Oil India
NIIT
Cochin ShipyardWhat are the top dividend paying stocks in india 2022 ?
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 MotoCorpWhich companies will give dividend in 2022?
There are companies that give regular dividends every year. Some of the companies that are expected to give dividends in 2022 are as below
1. TCS
2. Infosys
3. ITC
4. Coal India
5. Oracle financial servicesWhich Indian stocks pay monthly dividends?
There is no company in India which pays monthly dividends. Dividends are usually paid quarterly in India after a company declares their financial results.
