Last Updated on 3 months 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?
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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 November 2021
Here the list of highest dividend paying stocks in India in November 2021
| COMPANY / Stock | SECTOR – INDUSTRY | Price Rs | M CAP(Rs Cr.) | DIVIDEND YIELD(%) |
| TCS | IT Consulting & Software | 3,397.75 | 1,291,801 | 1.12 |
| Infosys | IT Consulting & Software | 1,667.75 | 715,980 | 1.62 |
| HUL | Personal Care | 2,393.15 | 566,569 | 1.3 |
| ITC | Cigarettes | 223.2 | 274,066 | 4.82 |
| ONGC | Oil Drilling And Exploration | 149.05 | 191,220 | 2.42 |
| Nestle India | FMCG Food & Beverages | 19,000.15 | 180,656 | 1.05 |
| Tata Steel | Steel – Integrated | 1,315.95 | 159,673 | 1.9 |
| Tech Mahindra | IT Consulting & Software | 1,477.85 | 145,317 | 3.04 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 311.35 | 133,414 | 6.84 |
| Power Grid | Power – Transmission | 185.05 | 128,313 | 6.48 |
| NTPC | Power Generation – Thermal | 132.65 | 132,602 | 4.64 |
| Indian Oil Corp. | Oil Refining & Marketing | 127.95 | 124,785 | 9.38 |
| Vedanta | Diversified | 304 | 115,475 | 3.13 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,707.25 | 107,020 | 3.78 |
| Coal India Ltd | Mining/Minerals | 164.45 | 104,612 | 9.73 |
| BPCL | Oil Refining & Marketing | 417.7 | 90,002 | 5.19 |
| Britannia | FMCG Food & Beverages | 3,675.75 | 87,432 | 4.28 |
| Ambuja Cements | Cement – Pan India | 404.8 | 81,987 | 4.45 |
| Marico | Personal Care | 568.45 | 71,703 | 1.32 |
| Indus Towers | Telecommunications – Allied Services | 271.5 | 77,493 | 7.41 |
| GAIL | Gas Distribution | 148.85 | 66,850 | 3.36 |
| Piramal Ent. | Diversified | 2,601.75 | 65,142 | 1.27 |
| Mphasis | IT Consulting & Software | 3,235.80 | 61,796 | 2.01 |
| Muthoot Finance | NBFC – Gold | 1,467.75 | 60,965 | 1.36 |
| UPL | Pesticides/Agro Chem | 740.2 | 56,314 | 1.35 |
| HDFC AMC | AMC | 2,647.20 | 56,006 | 1.28 |
| Hero MotoCorp | Auto – 2 & 3 Wheelers | 2,657.10 | 52,775 | 3.95 |
| Torrent Pharma | Pharma – Indian | 2,860.40 | 47,454 | 1.22 |
| P&G | Personal Care | 14,227.85 | 46,936 | 1.65 |
| HPCL | Oil Refining & Marketing | 310.4 | 44,571 | 6.44 |
| HAL | Defence Contractor | 1,306.60 | 44,265 | 2.3 |
| Abbott India | Pharma – MNC | 20,049.40 | 43,128 | 1.37 |
| Colgate-Palmolive | Personal Care | 1,542.60 | 41,063 | 2.46 |
| NMDC | Mining/Minerals | 143.15 | 41,585 | 5.42 |
| Concor | Warehousing/Supply Chain/ Road Transport | 655.1 | 41,530 | 1.04 |
| Shriram Trans Fin | NBFC – Vehicle Finance | 1,436.20 | 43,077 | 1.25 |
| Oracle | IT Consulting & Software | 4,424.50 | 38,006 | 4.52 |
| Tata Comm | Telecommunications – Service | 1,307.40 | 36,402 | 1.07 |
| Power Finance Corp. | Term Lending – Power | 133.1 | 35,852 | 7.51 |
| Indian Railway Finance Corporation Ltd. | Others | 24.2 | 32,737 | 4.34 |
| NHPC | Power Generation – Hydro | 30.7 | 30,537 | 5.21 |
| REC | Term Lending – Power | 148.65 | 30,177 | 8.55 |
| CG Consumer | Electronics/Electricals | 465.6 | 29,366 | 1.18 |
| Nippon Life AMC | AMC | 418.35 | 26,217 | 1.91 |
| GSK Pharma | Pharma – MNC | 1,503.95 | 27,794 | 1.99 |
| Cummins India | Engines | 895.7 | 24,825 | 1.67 |
| Oil India Ltd | Oil Drilling And Exploration | 225.05 | 23,553 | 2.22 |
| Torrent Power | Power – Integrated | 499.95 | 24,624 | 2.2 |
| ICICI Securities | Broking & Allied Services | 738 | 23,973 | 2.91 |
| BHEL | Capital Goods – Power | 68.25 | 24,862 | 1.54 |
| Emami | Personal Care | 531.25 | 25,173 | 1.51 |
| Coromandel Int. | Fertilisers | 785.6 | 22,699 | 1.53 |
| Tata Chemicals | Chemicals – Inorganic – Caustic Soda/Soda Ash | 901.35 | 22,829 | 1.11 |
| Bayer Cropsc. | Pesticides/Agro Chem | 4,988.30 | 21,238 | 2.31 |
| LIC Housing | NBFC – Housing | 406.85 | 23,413 | 2.09 |
| Crisil | Rating Agency | 2,802.00 | 20,541 | 1.18 |
| Sanofi India | Pharma – MNC | 8,346.90 | 18,473 | 4.37 |
| Gillette India | Personal Care | 5,641.35 | 18,592 | 2.11 |
| NALCO | Aluminium | 96.9 | 18,348 | 3.61 |
| Chambal Fertilisers | Fertilisers | 369.7 | 14,717 | 2.03 |
| Alembic Pharma | Pharma – Indian | 777.15 | 15,197 | 1.8 |
| CAMS | Registrar | 3,012.10 | 14,465 | 1.7 |
| Exide Inds. | Auto Ancl – Batteries | 172.9 | 15,177 | 1.16 |
| Shriram City Union | NBFC – Diversified | 2,165.25 | 14,426 | 1.52 |
| Firstsource | IT Enabled Services | 197.65 | 13,908 | 1.52 |
| Castrol India | Lubricants | 138.15 | 13,892 | 3.98 |
| Finolex Inds. | Plastics – Pipes & Fittings | 220.1 | 14,128 | 1.82 |
| Motilal Oswal | NBFC – Diversified | 915.85 | 13,502 | 1.09 |
| UTI AMC | AMC | 1,035.50 | 13,997 | 1.64 |
| SRF | Diversified | 2,117.30 | 12,324 | 1.13 |
| IIFL Finance | NBFC – Diversified | 323.9 | 12,895 | 1.39 |
| Cyient | IT Consulting & Software | 1,068.25 | 12,180 | 1.59 |
| AmaraRaja Batteries | Auto Ancl – Batteries | 680.65 | 11,864 | 1.62 |
| CESC | Power – Integrated | 87.2 | 11,758 | 51.61 |
| Godrej Agrovet | Animal Feed/Processing | 593.6 | 11,420 | 1.35 |
| Redington | IT Networking Equipment | 143.7 | 11,180 | 8.07 |
| SJVN | Power Generation – Hydro | 28.35 | 11,259 | 7.76 |
| Angel Broking | Broking & Allied Services | 1,243.50 | 10,121 | 1.04 |
| Ibull Housing Fin | NBFC – Housing | 216.8 | 10,407 | 4.15 |
| Mahanagar Gas | Gas Distribution | 1,003.15 | 9,946 | 2.29 |
| Akzo Nobel | Paints/Varnishes | 2,100.90 | 9,516 | 2.38 |
| Vaibhav Global | Jewellery Retail | 574.65 | 9,216 | 4.35 |
| P&G Health | Pharma – MNC | 5,423.75 | 9,032 | 2.4 |
| NLC India | Power Generation – Thermal | 63.65 | 9,270 | 3.93 |
| Sonata Software | IT Consulting & Software | 836.4 | 9,094 | 1.67 |
| MCX India | Exchange | 1,703.75 | 8,978 | 1.62 |
| HUDCO | NBFC – Housing | 42.85 | 8,548 | 5.08 |
| NBCC | Construction & Contracting | 44.65 | 8,325 | 1.05 |
| Tata Investment | Holding – Diversified | 1,512.30 | 7,764 | 1.59 |
| Avanti Feeds | Shrimp Feed/Processing | 556.8 | 7,530 | 1.12 |
| Bharat Dynamics | Defence Contractor | 405.45 | 7,767 | 1.81 |
| Rail Vikas Nigam | Construction & Contracting | 35.3 | 7,391 | 4.48 |
| Edelweiss Financial | NBFC – Diversified | 77.35 | 7,627 | 1.87 |
| GNFC | Fertilisers | 460.6 | 7,254 | 1.74 |
| Finolex Cables | Electronics/Electricals | 467.15 | 7,468 | 1.18 |
| Rites | Project Consultancy/ Turnkey | 283.25 | 6,757 | 4.59 |
| Essel Propack | Packaging – Metallic/Plastics/Others | 214.8 | 6,699 | 1.91 |
| KRBL | Rice | 282.9 | 6,623 | 1.24 |
| Kalpataru Power | Power – Infrastructure | 420.25 | 6,124 | 2.38 |
| Thyrocare Tech. | Diagnostics | 1,139.65 | 6,046 | 2.19 |
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
