Last Updated on 3 weeks 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
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 April 2021
| COMPANY / Stock | SECTOR – INDUSTRY | Price | M CAP(Rs Cr.) | DIVIDEND YIELD(%) |
| Weizmann Ltd | Textiles – Processing /Texturising | 44.35 | 77 | 22.55 |
| UFO Moviez | Film/TV Production & Distribution | 73.7 | 209 | 20.35 |
| Manaksia Ltd | Packaging – Metallic/Plastics/Others | 51.8 | 339 | 20.27 |
| Ibull Housing Fin | NBFC – Housing | 204.65 | 9,462 | 15.15 |
| IL&FS Invest | Broking & Allied Services | 4.05 | 127 | 14.81 |
| NLC India | Power Generation – Thermal | 50.75 | 7,037 | 13.91 |
| Banco Products | Auto Ancl – Engine Parts | 147.65 | 1,056 | 13.55 |
| Sanwaria Consumer | Agro Processing – Others | 0.6 | 44 | 12.5 |
| DB Corp. | Print Media | 91.5 | 1,601 | 10.93 |
| Global Education | Coaching/Study Material/ Schools | 37.5 | 38 | 10.67 |
| MPS Ltd | Print Media | 539.7 | 974 | 9.26 |
| Coal India Ltd | Mining/Minerals | 132.15 | 81,440 | 9.08 |
| Oil India Ltd | Oil Drilling And Exploration | 124 | 13,447 | 8.55 |
| SJVN | Power Generation – Hydro | 26.1 | 10,257 | 8.43 |
| HPCL | Oil Refining & Marketing | 237.6 | 35,887 | 8.42 |
| Power Finance Corp. | Term Lending – Power | 114.4 | 30,203 | 8.3 |
| REC | Term Lending – Power | 132.75 | 26,217 | 8.29 |
| TV Today Network | TV Broadcasting & Software Production | 270.45 | 1,614 | 8.23 |
| SMC Global Securities Ltd. | Others | 75.75 | 857 | 7.92 |
| Pfizer | Pharma – MNC | 4,551.50 | 20,822 | 7.25 |
| Sintex Inds. | Textiles – General | 3.5 | 208 | 7.14 |
| Welspun Corp | Steel – Tubes/Pipes | 147.3 | 3,843 | 7.13 |
| PTC India | Power – Trading & Allied Services | 78.8 | 2,333 | 6.98 |
| HUDCO | NBFC – Housing | 45.1 | 9,029 | 6.87 |
| P&G Health | Pharma – MNC | 6,169.30 | 10,241 | 6.78 |
| IDFC | Term Lending – General | 47.7 | 7,615 | 6.6 |
| The Andhra Sugars | Diversified | 304.05 | 824 | 6.58 |
| Engineers India | Project Consultancy/Turnkey | 78.4 | 4,406 | 6.57 |
| Rites | Project Consultancy/Turnkey | 244.75 | 5,881 | 6.54 |
| PTL Enterprises | Holding – Diversified | 38.95 | 258 | 6.42 |
| Ucal Fuel Sys | Auto Ancl – Engine Parts | 146.4 | 324 | 6.15 |
| NHPC | Power Generation – Hydro | 24.65 | 24,761 | 6.09 |
| NIIT | IT Training Services | 165.45 | 2,346 | 6.04 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 280.25 | 118,415 | 5.89 |
| PNB Gilts | Broking & Allied Services | 51.2 | 922 | 5.86 |
| SKF India | Auto Ancl – Bearings | 2,220.65 | 10,978 | 5.85 |
| Ambuja Cements | Cement – Pan India | 311 | 61,754 | 5.79 |
| Tide Water Oil | Lubricants | 4,389.95 | 1,530 | 5.69 |
| Balmer Lawrie | Diversified | 133.7 | 2,286 | 5.61 |
| Oracle | IT Consulting & Software – Mid Cap | 3,209.10 | 27,611 | 5.61 |
| Gujarat Pipavav | Port Operator | 99.95 | 4,832 | 5.6 |
| Energy Deve Co | Power Generation – Hydro | 9 | 43 | 5.56 |
| Ircon Intl. | Construction & Engineering | 89.9 | 4,228 | 5.28 |
| Orbit Exports | Textiles – Weaving | 57 | 156 | 5.26 |
| Sun TV | TV Broadcasting & Software Production | 478.35 | 18,851 | 5.23 |
| Mazagon Dock Ship | Defence Contractor | 214.7 | 4,330 | 5.01 |
| BPCL | Oil Refining & Marketing | 437.4 | 94,883 | 4.95 |
| Kewal Kiran Clo | Retail – Apparel/Accessories | 873.75 | 1,077 | 4.92 |
| ONGC | Oil Drilling And Exploration | 104.35 | 131,275 | 4.79 |
| ITC | Cigarettes | 220.05 | 270,774 | 4.61 |
| Menon Bearings | Auto Ancl – Bearings | 54.35 | 305 | 4.6 |
| Power Grid | Power – Transmission | 218.7 | 114,415 | 4.57 |
| SaskenTech | IT Consulting & Software – Small Cap | 875.3 | 1,317 | 4.57 |
| GAIL | Gas Distribution | 140.15 | 63,210 | 4.57 |
| Sanofi India | Pharma – MNC | 7,994.30 | 18,411 | 4.57 |
| Indian Oil Corp. | Oil Refining & Marketing | 93.15 | 87,693 | 4.56 |
| CARE Ratings | Rating Agency | 430.6 | 1,269 | 4.53 |
| Alphageo | Oil Drilling And Exploration Services | 179.35 | 114 | 4.46 |
| Castrol India | Lubricants | 124.8 | 12,344 | 4.41 |
| Cochin Shipyard | Defence Contractor | 378.45 | 4,978 | 4.39 |
| IRB Infra Dev. | Infrastructure – Roads/Tolls | 113.8 | 4,000 | 4.39 |
| Pressman Advertisin | Media – Others | 22.85 | 54 | 4.38 |
| Worth Peripherals | Packaging – Metallic/Plastics/Others | 51.85 | 82 | 4.34 |
| Oricon Enterpr | Diversified | 18.8 | 295 | 4.26 |
| Vikas Proppant & Gr | Miscellaneous | 2.4 | 124 | 4.17 |
| Indus Towers | Telecommunications – Allied Services | 255.45 | 68,842 | 4.11 |
| Manugraph India | Engineering – Others | 12.3 | 37 | 4.07 |
| Steel City Securitie | Financial Services – Misc | 37.1 | 56 | 4.04 |
| Srikalahasthi Pipes | Steel – Tubes/Pipes | 174.05 | 813 | 4.02 |
| Ingersoll-Rand | Engineering – General | 697.9 | 2,203 | 4.01 |
| IIFL Securities | Broking & Allied Services | 50.45 | 1,528 | 3.96 |
| TN Newsprint | Paper Manufacturer | 154 | 1,066 | 3.9 |
| Sonata Software | IT Consulting & Software – Mid Cap | 525.7 | 5,528 | 3.85 |
| Rail Vikas Nigam | Construction & Contracting | 29.65 | 6,182 | 3.84 |
| Magadh Sugar Energy | Sugar | 104.05 | 147 | 3.84 |
| Esab India | Welding Consumables & Equipment | 1,830.80 | 2,818 | 3.82 |
| NMDC | Mining/Minerals | 138.45 | 40,574 | 3.82 |
| Timken India | Capital Goods – Railway | 1,311.50 | 9,865 | 3.81 |
| Gujarat Ind | Power Generation – Thermal | 76.2 | 1,153 | 3.81 |
| Selan Expl Tech | Oil Drilling And Exploration | 131.5 | 200 | 3.8 |
| GRSE | Shipping – Allied Services | 190.55 | 2,183 | 3.75 |
| Mold Tek Tech | Diversified | 40.7 | 114 | 3.69 |
| Kuantum Papers | Paper Manufacturer | 68.3 | 596 | 3.66 |
| Rashtriya Chemicals | Fertilisers | 79.05 | 4,361 | 3.59 |
| Navneet Education | Printing/Publishing/Stationery | 83.65 | 1,915 | 3.59 |
| MOIL | Mining/Minerals | 156 | 3,702 | 3.53 |
| Phillips Carbon | Carbon Black | 198.7 | 3,424 | 3.52 |
| Compucom Soft | IT Training Services | 8.8 | 70 | 3.41 |
| Guj Mineral Dev. | Mining/Minerals | 58.95 | 1,875 | 3.39 |
| Sicagen India | Trading | 15.05 | 60 | 3.32 |
| CESC | Power – Integrated | 605.55 | 8,027 | 3.3 |
| Gandhi Special | Steel – Tubes/Pipes | 274.55 | 355 | 3.28 |
| GPT Infraproj | Construction & Contracting | 38.2 | 111 | 3.27 |
| Advani Hotels | Hotels & Resorts | 58.6 | 271 | 3.24 |
| Control Print | Computers – Accessories/Peripherals | 247.25 | 404 | 3.24 |
| Dhampur Sugar | Sugar | 185.6 | 1,232 | 3.23 |
| HAL | Defence Contractor | 1,035.65 | 34,631 | 3.21 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,743.05 | 108,312 | 3.21 |
| Jayant Agro Org | Chemicals – Others | 136.75 | 410 | 3.2 |
| Visaka Ind | Cement Products | 472.75 | 779 | 3.17 |
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 2021:-
Vedanta
NLC India
Oil India
NIIT
Cochin Shipyard
