Best dividend paying stocks in India 2020

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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

Best dividend paying stocks in India
Best dividend paying stocks 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 NameMkt Cap (Rs. Cr)Dividend Yield (%)Price (Prev. Close)Dividend Payout Ratio (%)Sector Name
Ashapura Intimates Fashion3.9180.651.555.07Textiles
Cox & Kings25.6068.971.502.18Hospitality
High Ground Enterprise3.4533.330.307.21Capital Goods
Banco Products (India)595.7524.0183.45186.76Automobile & Ancillaries
SKIL Infrastructure90.9522.994.508.33Capital Goods
Vedanta40,416.2718.69108.10Metals & Mining
NLC India6,385.4615.3346.6567.92Power
DB Corp1,363.7712.8378.1063.63Miscellaneous
Welspun Corp2,149.6912.7482.6040.67Metals & Mining
Oil India10,296.4311.1695.8530.13Oil & Gas
TV Today Network1,197.5511.09201.2095.27Media & Entertainment
PTC India1,485.9610.9649.8044.29Power
NIIT1,341.6310.5593.6010.43Software & IT Services
Wall Street Finance16.6110.4513.90Finance
IL&FS Investment Managers92.6410.173.05Finance
Setco Automotive132.4310.109.65503.24Automobile & Ancillaries
SJVN8,822.399.8022.6052.22Power
Jain Irrigation Systems (DVR)533.359.6210.3521.57Plastic Products
Jain Irrigation Systems533.359.6210.9021.57Plastic Products
Balmer Lawrie Investment868.149.59389.4578.74Finance
Hindustan Zinc79,414.878.78187.80102.44Metals & Mining
HUDCO7,116.768.7236.1536.33Finance
Ucal Fuel Systems236.958.40109.8043.44Automobile & Ancillaries
PNB Gilts649.848.3135.8528.98Finance
Lypsa Gems and Jewellery8.998.203.154.12Diamond  &  Jewellery
Windsor Machines85.717.5813.40Capital Goods
NHPC20,190.527.4620.1052.42Power
SREI Infrastructure Finance339.587.417.055.17Finance
Engineers India4,483.417.2669.9564.23Capital Goods
Bigbloc Construction50.057.0737.10143.94Real Estate
Balmer Lawrie and Company1,828.897.01106.4079.55Diversified
TAAL Enterprises44.566.99141.0017.18Aviation
Energy Development Company34.206.946.85Power
Gujarat Pipavav Port3,920.706.9181.1087.58Logistics
Stanrose Maf. Investment and Finance35.856.6488.85Finance
Sun TV Network15,075.716.54382.7071.13Media & Entertainment
Bhatia Communications & Retail (India) Ltd.76.976.5061.5092.91Retailing
RITES6,173.756.48252.4564.92Textiles
Menon Bearings217.446.4439.0097.31Automobile & Ancillaries
Swasti Vinayaka Art And Heritage Corporation12.646.333.2353.30Diversified
Narmada Gelatines98.796.12161.6546.97Chemicals
Power Grid Corporation of India85,431.866.12163.5047.30Power
Golkunda Diamonds and Jewellery9.276.0113.9741.33Diamond  &  Jewellery
Rashtriya Chemicals and Fertilisers2,609.496.0047.55120.55Chemicals
Tide Water Oil1,426.965.954,207.5070.18Automobile & Ancillaries
Goldiam International242.485.94108.6530.73Diamond  &  Jewellery
Kewal Kiran Clothing897.765.90731.4572.57Textiles
Sarla Performance Fibers156.575.8718.4536.24Textiles
Kilburn Engineering22.735.8317.0522.40Capital Goods
Indo Thai Securities17.405.7517.50Finance
GPT Infraprojects76.795.6826.7029.02Infrastructure
Tirupati Sarjan17.495.665.1046.58Real Estate
HSIL389.685.5754.7030.96Construction Materials
National Fertilizers1,702.315.3634.7030.92Chemicals
OnMobile Global291.985.3228.0557.49Software & IT Services
Bharti Infratel36,640.745.30203.1577.91Telecom
Tamil Nadu Newsprint and Papers783.125.30113.5531.94Paper
Pressman Advertising44.625.2618.8044.12Media & Entertainment
Garden Reach Shipbuilders & Engineers2,364.935.25203.5575.96Ship Building
ITC238,599.305.23192.7087.35FMCG
Esab India2,067.055.211,346.65156.32Capital Goods
United Credit Financial Services7.205.1813.4916.83Finance
Ircon International4,324.025.1794.5042.48Infrastructure
Cyient3,245.805.08296.7577.05Software & IT Services
Conart Engineers6.255.0319.1026.36Infrastructure
Cochin Shipyard4,402.004.97334.3534.61Ship Building
VEDAVAAG Systems46.884.8919.8037.11Software & IT Services
Timken India7,709.174.881,049.55152.82Automobile & Ancillaries
Kamadgiri Fashion24.864.7240.2524.91Textiles
Empire Industries320.374.68530.0043.89Construction Materials
Gandhi Special Tubes249.204.67192.2054.40Metals & Mining
Castrol India11,661.754.66117.3065.75Automobile & Ancillaries
GMDC1,372.174.6343.0031.17Metals & Mining
Dhampur Sugar Mills865.364.60129.3523.57Agri
Credit Analysis and Research1,252.104.59424.3069.75Miscellaneous
Century Enka382.174.57175.9013.79Textiles
Redington (India)3,688.554.5495.0032.47Trading
Rail Vikas Nigam4,107.494.5220.0526.51Infrastructure
Selan Exploration Technology168.874.50104.8015.92Oil & Gas
Munjal Showa407.754.41102.0542.31Automobile & Ancillaries
Garware Polyester530.864.38230.7527.01Plastic Products
HPCL34,133.634.35227.1056.30Oil & Gas
Joindre Capital19.114.3413.8070.87Finance
Tirupati Foam15.454.2835.0524.95Textiles
HeidelbergCement India3,968.004.28176.5063.40Construction Materials
Mysore Petro Chemicals31.014.2549.2527.13Chemicals
Ester Industries490.364.2557.5523.40Containers & Packaging
Ajmera Realty and Infra India276.434.2477.3515.57Real Estate
IRB Infrastructure Developers4,171.714.21118.60Infrastructure
Samkrg Pistons and Rings117.014.20118.7025.05Automobile & Ancillaries
Sasken Technologies735.764.09479.90144.69Software & IT Services
Uniply Industries98.914.075.9012.10Paper
Gujarat Industries Power Co.1,079.934.0674.6017.22Power
Tamilnadu Petroproducts332.444.0636.9021.32Chemicals
JK Paper1,764.614.0499.2515.00Paper
Shreyans Industries102.724.0474.5512.98Paper
Bajaj Auto86,665.434.013,002.5566.62Automobile & Ancillaries
Modison Metals122.343.9837.7029.18Capital Goods
Amarjothi Spinning Mills33.953.9850.5012.40Textiles
Dynamic Industries11.573.9340.9044.76Chemicals
MOIL3,620.443.93147.5057.37Metals & Mining
GTPL Hathway862.033.9180.4536.24Telecom
Sumedha Fiscal Services12.383.8715.35Finance
Balasore Alloys96.783.8610.88Metals & Mining
Divyashakti Granites39.893.8637.8520.62Construction Materials
BDH Industries41.313.8373.4032.78Healthcare
Menon Pistons59.923.8311.2952.33Automobile & Ancillaries
Geojit Financial Services940.093.8039.0076.00Finance
Kesar Terminals and Infrastructure28.903.7827.25Logistics
Compucom Software62.903.778.20554.48Software & IT Services
Great Eastern Shipping Company3,169.333.76224.1043.83Logistics
ASM Technologies33.383.7566.45100.56Software & IT Services
Savera Industries38.293.7432.0533.46Hospitality
Cosmo Films769.553.73404.5030.99Containers & Packaging
Manali Petrochemicals350.023.6920.1524.00Chemicals
Bright Brothers30.993.6755.0032.88Plastic Products
Tata Chemicals7,640.143.67306.3034.74Chemicals
Cummins India10,665.273.64393.0555.00Automobile & Ancillaries
Torrent Power15,326.873.64322.8578.44Power
Rubfila International163.743.6332.9535.18Automobile & Ancillaries
Anjani Portland Cement353.623.58141.2531.34Construction Materials
Quick Heal Technologies717.803.58122.6034.51Software & IT Services
NTPC87,368.943.5787.1526.87Power
Sicagen India55.603.5613.45549.61Trading
Hindustan Aeronautics Ltd.31,340.473.55923.4037.43Aviation
Royal Orchid Hotels155.503.5355.9541.81Hospitality
MphasiS18,605.103.511,005.4551.19Software & IT Services
United Drilling Tools268.313.48132.6520.65Capital Goods
Sagarsoft24.243.4442.6535.71Software & IT Services
Welspun Enterprises869.053.4259.2019.94Real Estate
Jindal Saw1,868.033.4157.957.42Metals & Mining
Siyaram Silk Mills606.503.40130.7020.81Textiles
Accelya Kale Solutions1,417.253.37950.9544.90Software & IT Services
BSE Limited2,281.613.35519.6562.60Finance
Srikalahasthi Pipes980.903.33205.8019.86Metals & Mining
NCL Industries340.833.3279.9022.24Construction Materials
Phillips Carbon Black1,837.123.28105.1042.10Chemicals
Strides Shasun3,822.303.28427.55255.08Healthcare
Andhra Sugars830.703.26301.6014.23Agri
Hero Motocorp55,209.433.262,860.1549.41Automobile & Ancillaries
Mazda123.333.25299.9024.06Capital Goods
Lahoti Overseas27.133.2310.045.42Trading
Radhika Jeweltech36.583.2315.5014.03Diamond  &  Jewellery
Allcargo Logistics2,278.833.2392.9033.05Logistics
Kallam Textiles26.683.216.1112.87Textiles
Automobile Corporation of Goa191.853.17315.20134.05Automobile & Ancillaries
Baid Leasing and Finance Company37.823.1732.107.76Finance
Tata Power Company13,342.683.1449.0538.24Power
Welspun India3,195.033.1431.5019.80Textiles
Yash Papers112.773.1333.3012.76Paper
GRM Overseas59.033.13155.1020.33Agri
Rane Brake Linings430.503.13551.3042.02Automobile & Ancillaries
Gujarat Narmada Valley Fertilizers & Chemicals2,513.123.09163.3020.41Chemicals
Magadh Sugar & Energy182.703.09128.356.79Agri
Sobha2,145.893.09235.5523.57Real Estate
Swasti Vinayaka Synthetics22.753.083.3727.74Textiles
Kabra Extrusion Technik155.363.0849.5064.54Capital Goods
Lumax Auto Technologies664.203.0899.9035.91Automobile & Ancillaries
TPL Plastech88.693.08113.4525.40Plastic Products
Apar Industries1,185.183.07309.8526.90Capital Goods
Monte Carlo Fashions339.283.06161.8016.02Textiles
VST Industries5,251.873.033,346.5052.30FMCG
Kalyani Forge48.173.02132.0019.20Metals & Mining
Savita Oil Technologies933.123.02660.5529.42Automobile & Ancillaries
HEG3,207.093.01819.55142.69Capital Goods
LIC Housing Finance13,421.513.01267.9016.80Finance
PTC India Financial Services966.642.9915.3026.28Finance
Sarda Energy and Minerals602.202.99170.0014.27Metals & Mining
Industrial and Prudential Investment Company146.612.98831.0017.85Finance
Damodar Industries58.722.9825.0519.95Textiles
FIEM Industries578.772.96435.5519.20Automobile & Ancillaries
Chemcrux Enterprises67.482.93150.3518.55Chemicals
West Coast Paper Mills1,130.102.92173.558.92Paper
CMI51.922.8933.003.34Electricals
Pearl Global Industries225.312.88103.009.66Textiles
A.K.Capital Services138.532.86207.007.94Finance
Bharat Electronics23,878.612.8696.7537.41Capital Goods
Tata Steel39,866.462.85352.4044.23Metals & Mining
Ceinsys Tech98.052.8392.5012.55Software & IT Services
Hindustan Composites261.042.83175.5070.49Automobile & Ancillaries
Polychem18.002.81467.7016.47Chemicals
Precision Camshafts321.532.8133.9025.53Automobile & Ancillaries
Gujarat Hotels33.982.7987.8522.03Hospitality
Polyplex Corporation1,949.462.79616.8019.28Plastic Products
Swaraj Automotives30.222.78130.5567.20Automobile & Ancillaries
63 Moons Technologies332.002.7872.20Software & IT Services
Panasonic Carbon India173.182.77381.2028.31Capital Goods
Oricon Enterprises284.262.7618.0021.63Diversified
Apollo Tyres6,263.952.74109.7536.02Automobile & Ancillaries
KG Denim70.382.7326.9522.57Textiles
Clariant Chemicals India928.812.73381.40136.79Chemicals
Panama Petrochem267.082.7244.2525.23Automobile & Ancillaries
Victoria Mills18.252.701,899.9515.20Textiles
Bimetal Bearings99.052.70252.60246.93Automobile & Ancillaries
Premco Global24.672.6874.8014.40Textiles
Maharashtra Seamless1,501.462.68226.4517.16Metals & Mining
Petronet LNG39,480.002.66266.2038.84Oil & Gas
Ponni Sugars (Erode)129.972.65148.7011.12Agri
Vinyl Chemicals (India)165.772.6591.0558.87Chemicals
Best dividend paying stocks in India

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

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 have given consistent good dividends in India are:-

Vedanta
NLC India
Oil India
NIIT
Cochin Shipyard


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