This post was most recently updated on January 3rd, 2023
Let’s have a look at different aspects of when a company pays dividends, the highest dividend paying stocks in India, and whether should you invest in a company just because it pays good dividends.
Full list of the highest dividend paying stocks in India
Here is the list of the best highest dividend paying stocks in India:
|COMPANY||SECTOR – INDUSTRY||Price Rs||Market CAP(Rs Cr.)||DIVIDEND YIELD(%)|
|HCL Tech||IT Consulting & Software – Large Cap||964.55||256,713||4.35|
|ONGC||Oil Drilling And Exploration||132.65||168,450||7.92|
|NTPC||Power Generation – Thermal||162.9||157,619||4.3|
|Power Grid||Power – Transmission||206.3||145,403||7.15|
|Coal India Ltd||Mining/Minerals||233.5||137,583||7.28|
|Tata Steel||Steel – Integrated||103.55||123,558||49.25|
|Hindustan Zinc||Metals – Non Ferrous – Copper/Zinc/Alloys – Products||284.55||115,077||6.33|
|Bajaj Auto||Auto – 2 & 3 Wheelers||3,594.65||103,582||3.89|
|Tech Mahindra||IT Consulting & Software – Large Cap||1,031.30||100,009||4.36|
|BPCL||Oil Refining & Marketing||312.15||67,561||6.94|
|Indian Oil Corp.||Oil Refining & Marketing||67.75||63,357||16.83|
|Indus Towers||Telecommunications – Allied Services||200.95||54,276||5.47|
|Hero MotoCorp||Auto – 2 & 3 Wheelers||2,646.10||52,388||3.59|
|NHPC||Power Generation – Hydro||37.95||38,573||4.77|
|SAIL||Steel – Integrated||82.45||32,879||10.61|
|HPCL||Oil Refining & Marketing||221.6||31,031||9.03|
|Indian Railway Finance Corporation Ltd.||Term Lending – Railways||21.4||27,901||6.54|
|Power Finance Corp.||Term Lending – Power||105.65||27,721||11.36|
|Oracle||IT Consulting & Software – Mid Cap||3,038.55||25,862||6.25|
|REC||Term Lending – Power||95.5||24,660||16.02|
|GSK Pharma||Pharma – MNC||1,408.65||23,803||6.39|
|Bata India||Leather – Footwear/Accessories||1,800.80||23,361||3.03|
|Bayer Cropsc.||Pesticides/Agro Chem||4,855.55||21,954||3.09|
|Oil India Ltd||Oil Drilling And Exploration||187||19,942||7.62|
|Nippon Life AMC||AMC||272.25||16,873||4.04|
|ICICI Securities||Broking & Allied Services||517.2||16,663||4.64|
|Sanofi India||Pharma – MNC||5,890.30||13,781||8.32|
|SJVN||Power Generation – Hydro||32.85||13,008||5.18|
|Redington||IT Networking Equipment||145.45||11,304||4.54|
|CESC||Power – Integrated||80.25||10,459||5.61|
|Vardhman Textiles||Textiles – Integrated||337.2||9,697||10.08|
|NLC India||Power Generation – Thermal||69.15||9,755||4.34|
|Cyient||IT Consulting & Software – Mid Cap||798.8||8,663||3|
|Mahanagar Gas||Gas Distribution||827.55||8,135||3.02|
|Rail Vikas Nigam||Construction & Contracting||36.3||7,475||5.56|
|Firstsource||IT Enabled Services||106.15||7,329||3.3|
|HUDCO||NBFC – Housing||36.2||7,227||9.67|
|Sonata Software||IT Consulting & Software – Mid Cap||513.05||7,015||4.09|
|Cochin Shipyard||Defence Contractor||507.8||6,533||3.3|
|Vaibhav Global||Jewellery Retail||368.65||6,067||8.14|
|Polyplex Corp.||Packaging – Metallic/Plastics/Others||1,889.45||5,941||5.5|
|Hinduja Global||IT Enabled Services||1,312.50||5,557||18.67|
|Phillips Carbon||Carbon Black||131.3||4,816||3.81|
|HEG||Electrodes – Graphite||1,186.15||4,125||3.37|
|Guj Mineral Dev.||Mining/Minerals||142.75||4,417||3.01|
|Gujarat Pipavav||Port Operator||90.2||4,278||4.43|
|Heidelberg Cement||Cement – Pan India||190.6||4,316||4.72|
|Ircon Intl.||Construction & Engineering||41.9||3,814||5.97|
|Godawari Power||Steel – Sponge Iron||276.65||3,879||3.98|
|Engineers India||Project Consultancy/Turnkey||65.05||3,648||4.61|
|Gateway Distriparks Ltd.||Others||69.5||3,473||7.19|
|Nava Bharat Vent.||Diversified||194.8||2,740||3.08|
|Kewal Kiran Clo||Retail – Apparel/Accessories||434.7||2,596||4.37|
|Goodyear India||Tyres & Tubes||1,044.85||2,395||9.57|
|Cosmo Films||Packaging – Metallic/Plastics/Others||880.9||2,395||3.97|
|Bajaj Consumer Care||Personal Care||158.7||2,308||5.04|
|DB Corp.||Print Media||125.85||2,226||3.97|
|IIFL Securities||Broking & Allied Services||69.6||2,069||4.31|
|Savita Oil Tech||Lubricants||304.6||2,060||8.21|
|Tide Water Oil||Lubricants||1,051.20||1,777||5.23|
|Accelya Solutions||IT Consulting & Software – Small Cap||1,108.10||1,704||5.6|
|INEOS Styrolution||Petrochem – Polymers||875||1,524||33.94|
|CARE Ratings||Rating Agency||512.2||1,500||3.32|
|Goldiam Intnl||Diamond Cutting/Precious Metals/Jewellery||130.9||1,352||4.58|
|Indian Metals||Metals – Ferrous – Others||249.65||1,332||5.01|
|Kalyani Steels||Steel – Rolling||305.95||1,313||3.27|
|Banco Products||Auto Ancl – Engine Parts||179.8||1,316||11.12|
|SaskenTech||IT Consulting & Software – Small Cap||827.45||1,232||3.02|
|Geojit Financial||NBFC – Diversified||49.65||1,149||6.04|
|MPS Ltd||Print Media||658.1||1,086||4.56|
|PNB Gilts||Broking & Allied Services||62.2||1,120||8.04|
|Saksoft Ltd||IT Consulting & Software – Small Cap||101.95||1,073||5.89|
|Precision Wires||Metals – Non Ferrous – Copper/Zinc/Alloys – Products||89.4||1,000||7.27|
|Shree Digvijay||Cement – North||68.4||966||5.12|
|Clariant Chem||Chemicals – Diversified||425.7||965||3.52|
|Salasar Techno Engg||Industrial Consumable – Others||29.8||857||3.36|
|SMC Global Securities Ltd.||Broking & Allied Services||79.95||824||3|
|Allsec Tech||IT Enabled Services||499.5||749||9.01|
|GIC Housing Fin||NBFC – Housing||133.1||724||3.38|
|Cheviot Company||Jute/Jute Yarn/Jute Products||1,181.25||687||5.08|
|DCM Shriram Ind||Sugar||81.65||689||9.19|
|Eldeco Housing||Real Estate||588||582||6.8|
|Vardhman Acryl||Textiles – Manmade Fibre – Acrylic Fibre||52.8||421||47.35|
|Indo Borax Chem||Chemicals – Inorganic – Others||130.15||418||7.68|
|Sarla Perform||Textiles – Processing/Texturising||48.9||394||4.09|
|PTL Enterprises||Holding – Diversified||30.6||407||6.54|
|Munjal Showa||Auto Ancl – Shock Absorber||100.5||396||4.48|
|IL&FS Invest||Broking & Allied Services||8.4||267||4.76|
|Renaissance Global||Diamond Cutting/Precious Metals/Jewellery||113.9||217||7.46|
|Indian Card Clothing||Capital Goods – Textiles||209.8||124||11.92|
|Steel City Securities||Financial Services – Misc||59.85||91||5.01|
|Sanwaria Consumer||Agro Processing – Others||0.85||59||8.82|
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 their shareholders if they feel it’s the best use of the cash.
Although paying a dividend is good but at times it’s considered as the inability of the company to do CAPEX. As you can’t paint every stock with the same brush, the dividend yardstick doesn’t hold true for most 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 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.
Although it’s good to keep an eye on stocks paying high dividends it’s always not necessary that the best dividend paying stocks are the best stocks to invest in.
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.
For all the latest information on dividend announcements, you can check the NSE website
How to understand which are good dividend paying stock companies?
Good Dividend-paying stocks are those that distribute a portion of their profits to shareholders in the form of dividends. Dividends can provide a steady stream of income for investors and can also be a sign of a company’s financial health and stability. Here are some tips to help you understand which are the good dividend-paying stock companies:
- Look for companies with a track record of consistent dividends: Companies that have a history of consistently paying dividends are generally considered more reliable and stable than those that do not. Look for companies that have paid dividends consistently over a period of time, rather than those that have only recently started paying dividends.
- Consider the company’s financial health: A company’s financial health is a key factor to consider when evaluating its ability to pay dividends. Look for companies that have strong financials, including a healthy balance sheet and a history of profitable operations.
- Evaluate the company’s dividend payout ratio: The dividend payout ratio is the percentage of a company’s earnings that is paid out as dividends. A high payout ratio may indicate that the company is relying heavily on its profits to pay dividends, which could be unsustainable in the long term. Look for companies with a dividend payout ratio that is sustainable and reasonable relative to their industry and peers.
- Consider the company’s growth prospects: While dividends can be a good source of income, it’s also important to consider a company’s growth prospects. Look for companies that have strong growth potential, as this can help support the value of your investment over the long term.
It’s a good idea to do your own research and carefully evaluate a company’s dividend history and financials before investing in dividend-paying stocks. It’s also a good idea to seek the advice of a financial advisor or professional for guidance on selecting dividend-paying stocks that are suitable for your investment goals and risk tolerance.
Which are highest dividend paying Indian stocks?
Some of the Indian stocks that have given consistently high dividends are:
- Coal India
- Oracle financial services
- HCL Tech
Advantages and Disadvantages of highest dividend paying stocks
Dividend-paying stocks are those that distribute a portion of their profits to shareholders in the form of dividends. Dividend-paying stocks can be a good investment option for those looking for a steady stream of income and for those who are seeking to diversify their portfolio. Here are some advantages and disadvantages of the highest dividend paying stocks:
- Income: One of the main advantages of high dividend-paying stocks is the income they provide. Dividends can provide a steady stream of income for investors, which can be especially appealing for those who are retired or looking for additional income.
- Diversification: Dividend-paying stocks can also help diversify a portfolio, as they can provide a source of income that is not tied to the stock’s price movements. This can help reduce the overall risk of the portfolio.
- Sign of financial stability: Companies that consistently pay dividends are generally considered more financially stable and less risky than those that do not. This can make dividend-paying stocks a good option for risk-averse investors.
- Lower potential returns: One of the main disadvantages of high dividend-paying stocks is that they may have lower potential returns compared to other types of stocks. This is because a portion of the company’s profits is being distributed as dividends, rather than being reinvested in the company’s growth.
- Volatility: High Dividend-paying stocks may also be more volatile than other types of stocks, as their price may be influenced by changes in the company’s dividends as well as changes in the stock market.
- Dependence on dividends: Some investors may become overly reliant on dividends as a source of income, which can be risky if the company’s dividends are reduced or eliminated. It’s important to diversify your portfolio and not rely too heavily on any one source of income.
It’s a good idea to carefully consider the advantages and disadvantages of dividend-paying stocks before investing and to seek the advice of a financial advisor if you have any questions. It’s also a good idea to diversify your portfolio and consider a range of investment options to help manage risk and achieve your financial goals.
FAQ on the highest 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 is the top 5 best dividend paying stocks in India?
Some of the companies which are the highest / best dividend-paying stocks in India 2022:
What are the top dividend paying stocks in India 2022 ?
If you are a long-term investor then you should look at companies which give dividends consistently. Some of the companies which are the best dividend paying stocks and good investment options for the long term are as below:
1. P&G Health
4. Sanofi India
5. Hero MotoCorp
Which companies will give dividends in 2022?
There are companies that give regular dividends every year. Some of the companies that are expected to give dividends in 2022 are as below:
4. Coal India
5. Oracle financial services
Which Indian stocks pay monthly dividends?
There is no company in India which pays monthly dividends. Dividends are usually paid quarterly in India after a company declares their financial results.