Last Updated on 2 weeks ago by Raj Kumar
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
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
Have a look at all famous investor’s portfolios here:-
Mohnish Pabrai Stocks Portfolio
Ashish Kacholia stocks portfolio
Full list of best / highest dividend paying stocks in India in December 2020
| Stock name | SECTOR – INDUSTRY | Price | Market Cap(Rs Cr.) | DIVIDEND YIELD(%) |
| Technofab Eng | Project Consultancy /Turnkey | 9.7 | 10 | 20.62 |
| UFO Moviez | Film/TV Production & Distribution | 80.85 | 229 | 18.55 |
| Manaksia Ltd | Packaging – Metallic/Plastics/Others | 63.55 | 416 | 16.52 |
| Ibull HousingFin | NBFC – Housing | 194.85 | 9,009 | 15.91 |
| Weizmann Ltd | Textiles – Processing /Texturising | 65.6 | 113 | 15.24 |
| Banco Products | Auto Ancl – Engine Parts | 146 | 1,044 | 13.7 |
| MPS Ltd | Print Media | 372.2 | 693 | 13.43 |
| NLC India | Power Generation – Thermal | 57.6 | 7,987 | 12.26 |
| DB Corp | Print Media | 88 | 1,540 | 11.36 |
| IL&FS Invest | Broking & Allied Services | 5.35 | 168 | 11.21 |
| TV Today Network | TV Broadcasting & Software Production | 216.85 | 1,294 | 10.26 |
| Oil India Ltd | Oil Drilling And Exploration | 112.5 | 12,200 | 9.42 |
| PTC India | Power – Trading & Allied Services | 61.95 | 1,834 | 8.88 |
| HPCL | Oil Refining & Marketing | 226.5 | 34,515 | 8.83 |
| SJVN | Power Generation – Hydro | 26 | 10,217 | 8.46 |
| Coal India Ltd | Mining/Minerals | 142.9 | 88,065 | 8.4 |
| IDFC | Term Lending – General | 39.5 | 6,306 | 7.97 |
| Welspun Corp | Steel – Tubes/Pipes | 131.9 | 3,441 | 7.96 |
| PFC | Term Lending – Power | 120.55 | 31,826 | 7.88 |
| HUDCO | NBFC – Housing | 39.4 | 7,887 | 7.87 |
| SKF India | Auto Ancl – Bearings | 1,655.20 | 8,183 | 7.85 |
| REC | Term Lending – Power | 140.15 | 27,678 | 7.85 |
| PNB Gilts | Broking & Allied Services | 43.55 | 784 | 6.89 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 243.05 | 102,696 | 6.79 |
| NHPC | Power Generation – Hydro | 22.35 | 22,451 | 6.71 |
| Engineers India | Project Consultancy/Turnkey | 76.8 | 4,853 | 6.71 |
| Sintex Inds. | Textiles – General | 3.75 | 223 | 6.67 |
| Uniply Ind | Laminates/Plywood/Boards | 3.7 | 62 | 6.49 |
| Balmer Lawrie | Diversified | 116.3 | 1,989 | 6.45 |
| The Andhra Sugars | Diversified | 314.45 | 852 | 6.36 |
| Global Education | Coaching/Study Material /Schools | 63.9 | 65 | 6.26 |
| P&G Health | Pharma – MNC | 6,688.45 | 11,102 | 6.25 |
| Pfizer | Pharma – MNC | 5,345.00 | 24,452 | 6.17 |
| Gujarat Pipavav | Port Operator | 92.7 | 4,481 | 6.04 |
| Rites Ltd. | Project Consultancy/Turnkey | 268.1 | 6,703 | 5.97 |
| Oracle Fin | IT Consulting & Software – Mid Cap | 3,125.95 | 26,881 | 5.76 |
| Sonata Software | IT Consulting & Software – Mid Cap | 353.5 | 3,717 | 5.73 |
| PTL Enterprises | Holding – Diversified | 43.8 | 290 | 5.71 |
| Mazagon Dock Ship | Defence Contractor | 189.65 | 3,825 | 5.68 |
| Tata Steel (PP) | Steel – Integrated | 177.4 | 21,361 | 5.64 |
| RKEC Projects | Construction & Contracting | 35.5 | 85 | 5.63 |
| Tide Water Oil | Lubricants | 4,458.10 | 1,554 | 5.61 |
| NIIT | IT Training Services | 182.4 | 2,586 | 5.48 |
| BPCL | Oil Refining & Marketing | 404.85 | 87,822 | 5.35 |
| Ircon Int. | Construction & Engineering | 90.2 | 4,242 | 5.27 |
| Kewal Kiran Clo | Retail – Apparel/Accessories | 824.95 | 1,017 | 5.21 |
| TN Newsprint | Paper Manufacturer | 115.85 | 802 | 5.18 |
| PowerGrid | Power – Transmission | 193.5 | 101,231 | 5.17 |
| Sun TV | TV Broadcasting & Software Production | 484 | 19,074 | 5.17 |
| SaskenTech | IT Consulting & Software – Small Cap | 780.45 | 1,175 | 5.13 |
| Rash Chem Fert | Fertilisers | 55.65 | 3,070 | 5.1 |
| Menon Bearings | Auto Ancl – Bearings | 49 | 275 | 5.1 |
| GAIL | Gas Distribution | 125.85 | 56,760 | 5.09 |
| ONGC | Oil Drilling And Exploration | 100.1 | 125,929 | 5 |
| Rail Vikas Nigam | Construction & Contracting | 23.1 | 4,816 | 4.94 |
| Worth Peripherals | Packaging – Metallic/Plastics /Others | 46 | 72 | 4.89 |
| Energy Deve Co | Power Generation – Hydro | 10.25 | 49 | 4.88 |
| Focus Lighting | Electric Equipment/ Components/Services | 20.8 | 21 | 4.81 |
| Kuantum Papers | Paper Manufacturer | 52.25 | 456 | 4.78 |
| Srikalahasthi Pipes | Steel – Tubes/Pipes | 148 | 691 | 4.73 |
| ITC | Cigarettes | 216.5 | 266,404 | 4.69 |
| Cochin Shipyard | Defence Contractor | 359.3 | 4,726 | 4.63 |
| Indo Thai Sec | Financial Services – Misc | 21.65 | 22 | 4.62 |
| NMDC | Mining/Minerals | 115.15 | 35,257 | 4.59 |
| Sanwaria Consumer | Agro Processing – Others | 1.65 | 121 | 4.55 |
| Timken India | Capital Goods – Railway | 1,109.70 | 8,347 | 4.51 |
| Esab India Ltd | Welding Consumables & Equipment | 1,581.00 | 2,434 | 4.43 |
| Ingersoll-Rand | Engineering – General | 632.45 | 1,997 | 4.43 |
| Indian Oil Corp | Oil Refining & Marketing | 96.05 | 90,423 | 4.42 |
| IRB Infra Dev | Infrastructure – Roads/Tolls | 113.05 | 3,973 | 4.42 |
| Sanofi India | Pharma – MNC | 7,999.90 | 18,424 | 4.36 |
| Steel City Securitie | Financial Services – Misc | 34.6 | 52 | 4.34 |
| Pressman Advertisin | Media – Others | 23.35 | 55 | 4.28 |
| IIFL Securities | Broking & Allied Services | 47 | 1,502 | 4.26 |
| Castrol India | Lubricants | 130 | 12,859 | 4.23 |
| Madhya Pradesh Today | Print Media | 11.85 | 5 | 4.22 |
| Orbit Exports | Textiles – Weaving | 71.45 | 196 | 4.2 |
| Bharti Infratel | Telecommunications – Allied Services | 251.2 | 46,462 | 4.18 |
| Phillips Carbon | Carbon Black | 168.5 | 2,904 | 4.15 |
| Shrenik | Trading | 5.15 | 53 | 3.88 |
| JK Paper | Paper Manufacturer | 103.2 | 1,759 | 3.88 |
| Visaka Ind | Cement Products | 387.8 | 624 | 3.87 |
| Century Enka | Textiles – Manmade Fibre – PFY/PSF | 206.95 | 452 | 3.87 |
| Alphageo | Oil Drilling And Exploration Services | 207 | 132 | 3.86 |
| Goldiam Intnl | Diamond Cutting/Precious Metals/ Jewellery | 168.45 | 374 | 3.86 |
| MOIL | Mining/Minerals | 143.05 | 3,395 | 3.84 |
| Gateway Distri | Warehousing/Supply Chain/ Road Transport | 117.55 | 1,467 | 3.83 |
| HAL | Defence Contractor | 869.9 | 29,088 | 3.82 |
| IIFL Finance | NBFC – Diversified | 118.15 | 4,471 | 3.81 |
| Gandhi Special | Steel – Tubes/Pipes | 237.8 | 307 | 3.78 |
| GMDC | Mining/Minerals | 53.2 | 1,692 | 3.76 |
| Manugraph India | Engineering – Others | 13.45 | 41 | 3.72 |
| CARE Ratings | Rating Agency | 525.75 | 1,549 | 3.71 |
| Oricon Enterpr | Diversified | 21.8 | 342 | 3.67 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,288.65 | 95,163 | 3.65 |
| Heidelberg Cem | Cement – Pan India | 207 | 4,691 | 3.62 |
| Control Print | Computers – Accessories/ Peripherals | 221.45 | 362 | 3.61 |
| Selan Expl Tech | Oil Drilling And Exploration | 138.45 | 210 | 3.61 |
| Trident Ltd | Textiles – Furnishings/ Terry Towels | 10 | 5,096 | 3.6 |
| Garden Reach Ship | Shipping – Allied Services | 198.4 | 2,273 | 3.6 |
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.
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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 are highest dividend paying stocks in India 2020:-
Vedanta
NLC India
Oil India
NIIT
Cochin Shipyard
