Last Updated on 1 month 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 September 2021
Here the list of highest dividend paying stocks in India in September 2021
| COMPANY / Stock | SECTOR – INDUSTRY | Price(Rs) | Market CAP(Rs Cr.) | DIVIDEND YIELD(%) |
| CESC | Power – Integrated | 88.85 | 11,778 | 50.65 |
| Clariant Chem | Chemicals – Diversified | 550.7 | 1,271 | 37.23 |
| Goodyear India | Tyres & Tubes | 1,022.55 | 2,359 | 17.41 |
| Tide Water Oil | Lubricants | 1,871.15 | 1,304 | 16.03 |
| PNB Gilts | Broking & Allied Services | 65.8 | 1,184 | 15.2 |
| PTL Enterprises | Holding – Diversified | 46.5 | 308 | 10.75 |
| Sanwaria Consumer | Agro Processing – Others | 0.7 | 52 | 10.71 |
| Indian Oil Corp. | Oil Refining & Marketing | 115 | 108,263 | 10.43 |
| Coal India Ltd | Mining/Minerals | 156.4 | 96,385 | 10.23 |
| Polyplex Corp. | Packaging – Metallic/Plastics/Others | 1,722.55 | 5,408 | 9.52 |
| REC | Term Lending – Power | 151.9 | 29,999 | 8.37 |
| Redington | IT Networking Equipment | 140.6 | 10,985 | 8.25 |
| SJVN | Power Generation – Hydro | 26.95 | 10,591 | 8.16 |
| PTC India | Power – Trading & Allied Services | 95.75 | 2,834 | 7.83 |
| Power Finance Corp. | Term Lending – Power | 133.4 | 35,219 | 7.5 |
| Indus Towers | Telecommunications – Allied Services | 270.85 | 72,992 | 7.43 |
| HPCL | Oil Refining & Marketing | 271.75 | 38,549 | 7.36 |
| Ircon Intl. | Construction & Engineering | 43.1 | 4,054 | 6.96 |
| Power Grid | Power – Transmission | 175.9 | 122,698 | 6.82 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 318.6 | 134,619 | 6.69 |
| Sintex Inds. | Textiles – General | 3.75 | 225 | 6.67 |
| NHPC | Power Generation – Hydro | 27.45 | 27,574 | 5.83 |
| NMDC | Mining/Minerals | 138.1 | 40,472 | 5.62 |
| BPCL | Oil Refining & Marketing | 413.8 | 89,764 | 5.24 |
| Rail Vikas Nigam | Construction & Contracting | 30.2 | 6,297 | 5.23 |
| HUDCO | NBFC – Housing | 42.85 | 8,578 | 5.08 |
| IL&FS Invest | Broking & Allied Services | 5.95 | 187 | 5.04 |
| NTPC | Power Generation – Thermal | 124.1 | 120,336 | 4.96 |
| Rites | Project Consultancy/Turnkey | 275.3 | 6,616 | 4.72 |
| Indian Railway Finance Corporation Ltd. | Others | 22.4 | 29,273 | 4.69 |
| Sanofi India | Pharma – MNC | 7,804.00 | 17,973 | 4.68 |
| Manaksia Ltd | Packaging – Metallic/Plastics/Others | 64.7 | 424 | 4.64 |
| Balmer Lawrie | Diversified | 129.65 | 2,217 | 4.63 |
| NLC India | Power Generation – Thermal | 54.15 | 7,509 | 4.62 |
| Geojit Financial | NBFC – Diversified | 76.85 | 1,832 | 4.55 |
| ITC | Cigarettes | 241.5 | 297,259 | 4.45 |
| Monte Carlo Fashion | Branded Apparels | 339.35 | 704 | 4.42 |
| Gujarat Pipavav | Port Operator | 101.95 | 4,929 | 4.41 |
| Ambuja Cements | Cement – Pan India | 413.2 | 82,047 | 4.36 |
| Ibull Housing Fin | NBFC – Housing | 208.45 | 9,639 | 4.32 |
| Swaraj Engines | Engines | 1,598.85 | 1,941 | 4.32 |
| Oracle | IT Consulting & Software | 4,668.90 | 40,211 | 4.28 |
| Cochin Shipyard | Defence Contractor | 362.95 | 4,774 | 4.27 |
| Rashtriya Chemicals | Fertilisers | 73.65 | 4,063 | 4.05 |
| Castrol India | Lubricants | 137.45 | 13,595 | 4 |
| Welspun Corp | Steel – Tubes/Pipes | 125.75 | 3,281 | 3.98 |
| NALCO | Aluminium | 88.6 | 16,273 | 3.95 |
| Bajaj Consumer Care | Personal Care | 256.8 | 3,789 | 3.89 |
| Lakshmi Finance | Financial Services – Misc | 77.3 | 23 | 3.88 |
| Britannia | FMCG Food & Beverages | 4,075.55 | 98,167 | 3.86 |
| Bajaj Auto | Auto – 2 & 3 Wheelers | 3,728.80 | 107,899 | 3.75 |
| Techno Electric | Capital Goods – Others | 270.2 | 2,972 | 3.7 |
| Gateway Distripark | Warehousing/Supply Chain/ Road Transport | 243.7 | 3,042 | 3.69 |
| Hero MotoCorp | Auto – 2 & 3 Wheelers | 2,850.45 | 56,949 | 3.68 |
| Pressman Advertisin | Media – Others | 27.6 | 65 | 3.62 |
| MOIL | Mining/Minerals | 156.9 | 3,724 | 3.51 |
| Selan Expl Tech | Oil Drilling And Exploration | 143.3 | 218 | 3.49 |
| Vaibhav Global | Jewellery Retail | 723.25 | 11,804 | 3.46 |
| Gujarat Ind | Power Generation – Thermal | 79.9 | 1,209 | 3.38 |
| VST Industries | Cigarettes | 3,374.65 | 5,211 | 3.38 |
| Munjal Showa | Auto Ancl – Shock Absorber | 134.45 | 538 | 3.35 |
| TBZ | Jewellery Retail | 74.8 | 499 | 3.34 |
| GAIL | Gas Distribution | 150 | 66,606 | 3.33 |
| Global Education | Coaching/Study Material/ Schools | 45 | 46 | 3.33 |
| Shree Digvijay | Cement – North | 76.85 | 1,097 | 3.25 |
| Vedanta | Diversified | 292.9 | 108,877 | 3.24 |
| Jullundur Motor | Auto Ancl – Engine Parts | 62.75 | 143 | 3.19 |
| Heidelberg Cement | Cement – Pan India | 259.5 | 5,881 | 3.08 |
| Tech Mahindra | IT Consulting & Software | 1,461.70 | 141,637 | 3.08 |
| DB Corp. | Print Media | 98 | 1,715 | 3.06 |
| ICICI Securities | Broking & Allied Services | 728.95 | 23,513 | 2.95 |
| Subex | IT Consulting & Software | 51.8 | 2,911 | 2.9 |
| Srikalahasthi Pipes | Steel – Tubes/Pipes | 207.8 | 970 | 2.89 |
| Mazagon Dock Ship | Defence Contractor | 251.2 | 5,066 | 2.88 |
| Phillips Carbon | Carbon Black | 244.55 | 4,215 | 2.86 |
| Rane Brake Lin | Auto Ancl – Susp. & Braking – Others | 903.05 | 698 | 2.77 |
| Engineers India | Project Consultancy/Turnkey | 72.4 | 4,069 | 2.76 |
| GIC Housing Fin | NBFC – Housing | 146.35 | 788 | 2.73 |
| ONGC | Oil Drilling And Exploration | 135.2 | 170,085 | 2.66 |
| Gulf Oil India | Lubricants | 603.2 | 3,036 | 2.65 |
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
