Last Updated on 1 week ago by Raj Kumar
List of highest / best dividend paying stocks in India 2021
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?
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 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 / 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 July 2021
Here the list of highest dividend paying stocks in India in July 2021
| COMPANY / Stock | SECTOR – INDUSTRY | LTP(Rs) | Market CAP(Rs Cr.) | DIVIDEND YIELD(%) |
| TCS | IT Consulting & Software | 3,197.55 | 1,182,790 | 1.41 |
| Infosys | IT Consulting & Software | 1,603.90 | 683,115 | 1.68 |
| HUL | Personal Care | 2,348.70 | 551,848 | 1.32 |
| HCL Tech | IT Consulting & Software | 1,000.30 | 271,448 | 3.2 |
| ITC | Cigarettes | 211.15 | 259,901 | 5.09 |
| Nestle India | FMCG Food & Beverages | 18,101.35 | 174,525 | 1.1 |
| Sun Pharma | Pharma – Indian | 703.4 | 168,769 | 1.07 |
| Tata Steel | Steel – Integrated | 1,297.95 | 156,290 | 1.93 |
| ONGC | Oil Drilling And Exploration | 114.55 | 144,107 | 3.14 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 326.5 | 137,957 | 6.52 |
| Power Grid | Power – Transmission | 232.7 | 121,739 | 5.16 |
| NTPC | Power Generation – Thermal | 119.35 | 115,730 | 5.15 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,836.35 | 111,011 | 3.65 |
| Tech Mahindra | IT Consulting & Software | 1,120.20 | 108,546 | 4.02 |
| Vedanta | Diversified | 272.1 | 101,145 | 3.49 |
| BPCL | Oil Refining & Marketing | 456 | 98,918 | 4.75 |
| Indian Oil Corp. | Oil Refining & Marketing | 104.65 | 98,519 | 11.47 |
| M&M | Auto – Cars/UV/CV | 754.3 | 93,774 | 1.16 |
| Coal India Ltd | Mining/Minerals | 144 | 88,743 | 11.11 |
| Britannia | FMCG Food & Beverages | 3,482.00 | 83,870 | 4.52 |
| Ambuja Cements | Cement – Pan India | 408.1 | 81,034 | 4.41 |
| Marico | Personal Care | 537 | 69,348 | 1.4 |
| GAIL | Gas Distribution | 141.35 | 62,765 | 3.54 |
| UPL | Pesticides/Agro Chem | 819.95 | 62,648 | 1.22 |
| Muthoot Finance | NBFC – Gold | 1,556.80 | 62,459 | 1.28 |
| HDFC AMC | AMC | 2,868.75 | 61,124 | 1.19 |
| Indus Towers | Telecommunications – Allied Services | 224.2 | 60,420 | 8.97 |
| Hero MotoCorp | Auto – 2 & 3 Wheelers | 2,810.25 | 56,146 | 3.74 |
| Piramal Ent. | Diversified | 2,252.60 | 53,761 | 1.46 |
| SAIL | Steel – Integrated | 129.6 | 53,532 | 2.16 |
| Lupin | Pharma – Indian | 1,171.75 | 53,186 | 1.11 |
| Torrent Pharma | Pharma – Indian | 3,079.20 | 52,107 | 1.14 |
| NMDC | Mining/Minerals | 174.8 | 51,227 | 4.44 |
| Colgate-Palmolive | Personal Care | 1,805.95 | 49,119 | 2.1 |
| Mphasis | IT Consulting & Software | 2,589.15 | 48,462 | 2.51 |
| BEL | Defence Contractor | 184.6 | 44,980 | 1.11 |
| Bajaj Holdings | Holding – Diversified | 3,881.90 | 43,203 | 1.03 |
| Concor | Warehousing/ Supply Chain/ Road Transport | 658.25 | 40,107 | 1.04 |
| Tata Power | Power – Integrated | 122.6 | 39,175 | 1.26 |
| HPCL | Oil Refining & Marketing | 273.55 | 38,804 | 7.31 |
| Tata Comm | Telecommunications – Service | 1,349.55 | 38,462 | 1.04 |
| Abbott India | Pharma – MNC | 17,859.85 | 37,951 | 1.54 |
| HAL | Defence Contractor | 1,104.85 | 36,945 | 2.72 |
| Shriram Trans Fin | NBFC – Vehicle Finance | 1,370.40 | 36,596 | 1.31 |
| Oracle | IT Consulting & Software | 4,137.65 | 35,635 | 4.83 |
| Power Finance Corp. | Term Lending – Power | 127.8 | 33,740 | 7.82 |
| Indian Railway Finance Corporation Ltd. | Others | 23.25 | 30,384 | 4.52 |
| REC | Term Lending – Power | 150.75 | 29,772 | 7.3 |
| CG Consumer | Electronics/Electricals | 468.45 | 29,410 | 1.17 |
| GSK Pharma | Pharma – MNC | 1,728.40 | 29,280 | 1.74 |
| Coromandel Int. | Fertilisers | 914.2 | 26,821 | 1.31 |
| Supreme Ind. | Plastic Intermediaries/ Products | 2,095.60 | 26,620 | 1.05 |
| Bayer Cropsc. | Pesticides/Agro Chem | 5,838.70 | 26,240 | 1.97 |
| NHPC | Power Generation – Hydro | 25.75 | 25,866 | 6.21 |
| Emami | Personal Care | 559.6 | 24,875 | 1.43 |
| Nippon Life AMC | AMC | 397.3 | 24,569 | 2.01 |
| Cummins India | Engines | 851.9 | 23,615 | 1.76 |
| ICICI Securities | Broking & Allied Services | 713.05 | 23,000 | 3.02 |
| Torrent Power | Power – Integrated | 467.4 | 22,464 | 2.35 |
| LIC Housing | NBFC – Housing | 442.65 | 22,339 | 1.92 |
| Crisil | Rating Agency | 3,019.45 | 21,965 | 1.09 |
| BHEL | Capital Goods – Power | 62.7 | 21,833 | 1.68 |
| Hatsun Agro | FMCG Dairy Products | 925.75 | 19,956 | 1.51 |
| Zee Ent. | TV Broadcasting & Software Production | 205.75 | 19,763 | 1.22 |
| Tata Chemicals | Chemicals – Inorganic – Caustic Soda/Soda Ash | 758.3 | 19,318 | 1.32 |
| Sanofi India | Pharma – MNC | 7,987.80 | 18,396 | 4.57 |
| Oil India Ltd | Oil Drilling And Exploration | 161.2 | 17,481 | 3.1 |
| Manappuram Finance | NBFC – Gold | 194.35 | 16,449 | 1.03 |
| NALCO | Aluminium | 83.55 | 15,345 | 2.99 |
| Exide Inds. | Auto Ancl – Batteries | 178.2 | 15,147 | 1.12 |
| Firstsource | IT Enabled Services | 215.05 | 14,981 | 1.4 |
| Castrol India | Lubricants | 143.45 | 14,189 | 3.83 |
| Ibull Housing Fin | NBFC – Housing | 285.15 | 13,186 | 3.16 |
| Chambal Fertilisers | Fertilisers | 316.1 | 13,156 | 2.37 |
| Vaibhav Global | Jewellery Retail | 782.85 | 12,777 | 3.19 |
| Godrej Agrovet | Animal Feed/Processing | 654.85 | 12,579 | 1.22 |
| Redington | IT Networking Equipment | 320.9 | 12,526 | 3.61 |
| UTI AMC | AMC | 926.35 | 11,745 | 1.84 |
| Shriram City Union | NBFC – Diversified | 1,777.35 | 11,731 | 1.86 |
| IIFL Finance | NBFC – Diversified | 297.85 | 11,288 | 1.51 |
| Mahanagar Gas | Gas Distribution | 1,139.10 | 11,252 | 2.02 |
| CESC | Power – Integrated | 837.75 | 11,105 | 5.37 |
| Finolex Inds. | Plastics – Pipes & Fittings | 176.15 | 10,930 | 2.27 |
| Cyient | IT Consulting & Software | 984.05 | 10,834 | 1.73 |
| SJVN | Power Generation – Hydro | 27.35 | 10,748 | 8.04 |
| Akzo Nobel | Paints/Varnishes | 2,265.45 | 10,317 | 2.21 |
| Angel Broking | Broking & Allied Services | 1,229.60 | 10,128 | 1.05 |
| HUDCO | NBFC – Housing | 47.3 | 9,469 | 4.6 |
| P&G Health | Pharma – MNC | 5,444.20 | 9,037 | 7.68 |
| Trident Ltd | Textiles – Furnishings/ Terry Towels | 17.1 | 8,714 | 2.11 |
| MCX India | Exchange | 1,695.25 | 8,646 | 1.63 |
| Edelweiss Financial | NBFC – Diversified | 90.15 | 8,443 | 1.61 |
| Sonata Software | IT Consulting & Software | 774.65 | 8,146 | 1.81 |
| NLC India | Power Generation – Thermal | 57.05 | 7,911 | 4.38 |
| Finolex Cables | Electronics/Electricals | 517.1 | 7,908 | 1.06 |
| Essel Propack | Packaging – Metallic/Plastics/Others | 242.9 | 7,665 | 1.69 |
| Bharat Dynamics | Defence Contractor | 402.45 | 7,376 | 1.83 |
| Kalpataru Power | Power – Infrastructure | 474.75 | 7,069 | 2.11 |
| Thyrocare Tech. | Diagnostics | 1,308.30 | 6,918 | 1.91 |
| Rites | Project Consultancy/Turnkey | 285.35 | 6,857 | 4.56 |
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.
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 latest information on dividend announcement, you can check the NSE website
FAQ on 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 best / highest dividend paying stocks in India 2021:-
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 best dividend paying stocks and good investment option for long term are as below
1. P&G Health
2. Pfizer
3. Oracle
4. Sanofi India
5. Hero MotoCorp
