List of highest / best dividend paying stocks in India 2022

Best dividend paying stocks in India

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?

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

Blue chip stocks india

Zero debt companies in India

Best dividend paying stocks in India
Best / highest dividend paying stocks 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 / STOCKSECTOR – INDUSTRYPriceMarket CapDIVIDEND YIELD(%)
ITCCigarettes266.65328,6004.03
HCL TechIT Consulting & Software 1,050.20284,9894
Power GridPower – Transmission238.4166,2955.03
NTPCPower Generation – Thermal159154,1773.87
Vedanta Diversified360.4133,96812.49
Hindustan ZincMetals – Non-Ferrous – 
Copper/Zinc/Alloys – Products
304.8128,7885.91
Tech MahindraIT Consulting & Software1,290.75125,4393.49
Indian Oil Corp.Oil Refining & Marketing126.25118,8549.5
Coal India LtdMining/Minerals187.4115,4908.54
Bajaj AutoAuto – 2 & 3 Wheelers3,499.75101,2714
BPCLOil Refining & Marketing357.377,5076.06
GAILGas Distribution160.271,1353.12
Indus TowersTelecommunications 
– Allied Services
198.953,60210.12
NMDCMining/Minerals152.4544,6775.09
HPCLOil Refining & Marketing268.738,1167.44
SAILSteel – Integrated89.937,1333.11
Schaeffler India Bearings2,288.2035,7653.5
NHPCPower Generation – Hydro33.7533,9024.74
Power Finance Corp.Term Lending – Power112.7529,7678.87
Indian Railway Finance Corporation Ltd.Term Lending – Railways21.728,3594.84
RECTerm Lending – Power122.5524,20310.37
Nippon Life AMCAMC294.2518,3033.74
NALCOAluminium98.618,1093.55
ICICI SecuritiesBroking & Allied Services509.916,4534.71
Sanofi IndiaPharma – MNC6,862.8515,8067.14
NLC India Power Generation – Thermal8211,3703.05
SJVNPower Generation – Hydro28.411,1617.75
Vardhman TextilesTextiles – Integrated385.511,1364.54
CESCPower – Integrated83.511,06953.89
RedingtonIT Networking Equipment138.310,8088.39
Castrol IndiaLubricants105.5510,4405.21
Polyplex Corp.Packaging – 
Metallic/Plastics/Others
2,499.707,8476.56
Saregama IndiaMedia – Others395.17,6187.59
Mahanagar GasGas Distribution763.957,5463.01
Tata InvestmentHolding – Diversified1,471.057,4433.74
P&G HealthPharma – MNC4,326.407,1823
Vaibhav GlobalJewellery Retail420.156,8905.95
Ibull Housing FinNBFC – Housing146.66,8696.14
Sonata SoftwareIT Consulting & Software645.656,7903.25
HUDCONBFC – Housing33.96,7866.42
Rail Vikas NigamConstruction & Contracting32.46,7554.88
RitesProject Consultancy/Turnkey259.256,2305.01
Godawari PowerSteel – Sponge Iron379.155,3444.88
Rashtriya ChemicalsFertilisers90.85,0093.28
VST IndustriesCigarettes3,183.704,9164.4
Heidelberg CementCement – Pan India189.94,3034.21
Cochin ShipyardDefence Contractor322.854,2474.8
Gujarat PipavavPort Operator83.754,0495.37
Hinduja GlobalIT Enabled Services959.354,0104.17
Ircon Intl.Construction & Engineering40.053,7677.49
MOILMining/Minerals171.73,4943.2
Engineers IndiaProject Consultancy/Turnkey61.93,4793.23
Techno ElectricCapital Goods – Others302.153,3243.31
PTC IndiaPower – Trading & 
Allied Services
88.852,6308.44
IIFL SecuritiesBroking & Allied Services79.952,4303.75
Bajaj Consumer CarePersonal Care161.82,3876.18
Gulf Oil IndiaLubricants415.752,0383.85
Goodyear IndiaTyres & Tubes882.052,03520.18
Phillips CarbonCarbon Black107.22,0234.66
The Andhra Sugars Diversified148.92,0186.72
Full list of best / highest dividend-paying stocks in India

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:-

Radhakishan Damani Portfolio

Porinju Veliyath portfolio

Vijay Kedia stocks portfolio

Nemish Shah stocks portfolio

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 in

  • What 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 Shipyard

  • What 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

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