Top 50 Highest Dividend Paying Stocks List in India
This post was most recently updated on March 2nd, 2024
If you are looking to earn while holding stocks in your portfolio then you should look at investing in the Highest Dividend Paying Stocks List in India. These stocks pay consistent dividends which help you generate passive income while you are holding the stocks in your portfolio.
In this article, we’ll take a closer look at the best and highest dividend paying stocks in India, examining their dividend yields, payout ratios, and financial health.
We’ll also provide insights into the benefits and risks associated with dividend-paying stocks, helping investors make informed investment decisions.
Consider reading: Best Blue Chip Stocks in India
Page Contents
Full List of the Top 50 Highest Dividend Paying Stocks in India in 2024
| COMPANY / Stock | SECTOR – INDUSTRY | Price Rs | M CAP(Rs Cr.) | DIVIDEND YIELD(%) |
|---|---|---|---|---|
| Vedanta | Diversified | 271 | 1,01,034 | 37.45 |
| TV Today Network | TV Broadcasting & Software Production | 245.1 | 1,446 | 28.56 |
| Hindustan Zinc | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 309.85 | 1,30,457 | 24.37 |
| Bhansali Engg | Petrochem – Polymers | 97.1 | 2,400 | 17.51 |
| Polyplex Corp. | Packaging – Metallic/Plastics/Others | 881.35 | 2,750 | 9.98 |
| IDFC | Term Lending – General | 118 | 18,808 | 9.32 |
| Indian Card Clothing | Capital Goods – Textiles | 271.9 | 161 | 9.19 |
| Credo Brands Marketi | Others | 224.5 | 1,435 | 8.91 |
| IL&FS Invest | Broking & Allied Services | 10.25 | 317 | 7.8 |
| INEOS Styrolution | Petrochem – Polymers | 1,446.95 | 2,550 | 7.19 |
| Vaibhav Global | Jewellery Retail | 432.25 | 7,086 | 6.94 |
| Power Grid | Power – Transmission | 286.9 | 2,67,578 | 6.54 |
| Coal India Ltd | Mining/Minerals | 448.6 | 2,75,073 | 5.41 |
| Goldiam Intnl | Diamond Cutting/Precious Metals/Jewellery | 189.4 | 1,999 | 5.28 |
| Manaksia Ltd | Packaging – Metallic/Plastics/Others | 121.5 | 789 | 4.94 |
| Eldeco Housing | Real Estate | 813 | 804 | 4.92 |
| PDS Multi&Fash | Miscellaneous | 524.75 | 6,871 | 4.86 |
| GNFC | Fertilisers | 634.75 | 9,284 | 4.73 |
| Uniphos Enter | Trading | 142.95 | 987 | 4.55 |
| GSFC | Fertilisers | 221.35 | 8,761 | 4.52 |
| Standard Ind | Chemicals – Inorganic – Caustic Soda/Soda Ash | 23.55 | 148 | 4.46 |
| ONGC | Oil Drilling And Exploration | 271.9 | 3,40,359 | 4.14 |
| Oswal Green Tech | Financial Services – Misc | 36.7 | 921 | 4.09 |
| VST Industries | Cigarettes | 3,726.00 | 5,755 | 4.03 |
| Vardhman Acryl | Textiles – Manmade Fibre – Acrylic Fibre | 62.65 | 498 | 3.99 |
| Tech Mahindra | IT Consulting & Software – Large Cap | 1,275.15 | 1,24,149 | 3.92 |
| PTL Enterprises | Holding – Diversified | 45.05 | 592 | 3.88 |
| PTC India | Power – Trading & Allied Services | 201.5 | 5,889 | 3.87 |
| HPCL | Oil Refining & Marketing | 517.2 | 73,360 | 3.87 |
| Steel City Securitie | Financial Services – Misc | 78.4 | 119 | 3.83 |
| Allcargo Logistics | Warehousing/Supply Chain/Road Transport | 85.95 | 8,388 | 3.78 |
| Ruchira Papers | Paper Manufacturer | 132.5 | 399 | 3.77 |
| ITC | Cigarettes | 411.1 | 5,10,876 | 3.77 |
| Shree Digvijay | Cement – North | 107.2 | 1,559 | 3.73 |
| Rashtriya Chemicals | Fertilisers | 143.5 | 7,875 | 3.69 |
| Swaraj Engines | Engines | 2,556.40 | 3,087 | 3.6 |
| CESC | Power – Integrated | 127.35 | 16,795 | 3.53 |
| Petronet LNG | Gas Storage & Distribution | 283.4 | 42,405 | 3.53 |
| Castrol India | Lubricants | 214.1 | 21,133 | 3.5 |
| Accelya Solutions | IT Consulting & Software – Small Cap | 1,871.00 | 2,738 | 3.47 |
| Redington | IT Networking Equipment | 208.5 | 16,498 | 3.45 |
| GHCL | Chemicals – Inorganic – Caustic Soda/Soda Ash | 510 | 4,863 | 3.43 |
| Oil India Ltd | Oil Drilling And Exploration | 587.5 | 63,888 | 3.4 |
| Heidelberg Cement | Cement – Pan India | 208 | 4,680 | 3.37 |
| Precision Wires | Metals – Non Ferrous – Copper/Zinc/Alloys – Products | 143 | 2,552 | 3.36 |
| Jagran Prakashan | Print Media | 119.45 | 2,596 | 3.35 |
| Piramal Ent. | Diversified | 933.15 | 21,021 | 3.32 |
| D-Link (India) | IT Networking Equipment | 302.9 | 1,069 | 3.3 |
| Rane Brake Lin | Auto Ancl – Susp. & Braking – Others | 759.2 | 588 | 3.29 |
| Banco Products | Auto Ancl – Engine Parts | 670 | 4,795 | 3.28 |
Source: NSE website
Top 10 Highest Dividend Paying Penny Stocks in India
| Stock Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | Div Yld % | ROCE % | Debt / Eq | Debt Rs.Cr. |
|---|---|---|---|---|---|---|---|
| Bank of Maha | 33.8 | 7.49 | 22749.08 | 3.85 | 4.44 | 15.51 | 244829.76 |
| Geojit Fin. Ser. | 47.55 | 11.73 | 1136.89 | 3.15 | 15.77 | 0.16 | 114.27 |
| Ujjivan Small | 44.3 | 7.09 | 8660.01 | 2.82 | 10.63 | 6.69 | 28179.14 |
| NHPC Ltd | 50.25 | 12.98 | 50476.3 | 2.79 | 8.92 | 0.8 | 29539.84 |
| I R F C | 35.05 | 7.23 | 45805.11 | 2.28 | 5.32 | 9.21 | 418934.9 |
| SJVN | 55.8 | 15.86 | 21928.26 | 2.06 | 9.05 | 1.01 | 14059.34 |
| IDBI Bank | 58.05 | 14.98 | 62417.69 | 1.72 | 4.26 | 5.79 | 267959.91 |
| Pun. & Sind Bank | 33.1 | 17.1 | 22434.47 | 1.45 | 5.26 | 7.86 | 118683.87 |
| Electrost.Cast. | 56.85 | 10.7 | 3380.33 | 1.41 | 9.93 | 0.61 | 2667.39 |
| Brightcom Group | 23.9 | 3.52 | 4822.83 | 1.26 | 30.91 | 0 | 0 |
When Does a Company Pay a Dividend?
Dividends are distributed after approval by a company’s board, often reflecting the company’s decision to share its profits with shareholders when deemed an optimal use of funds. However, the inclination to pay dividends can sometimes be interpreted as a company’s lack of opportunities for capital expenditure (CAPEX), though this perspective does not universally apply.
In India, for instance, Public Sector Units (PSUs) frequently distribute high dividends, primarily due to government ownership demanding returns. Yet, being a high dividend payer does not necessarily equate to being an attractive investment option. Similarly, certain technology companies offer substantial dividends, not as an indicator of avoiding CAPEX but as a reflection of their unique business models.
While high dividend yields can catch an investor’s eye, they should not be the sole criterion for investment decisions. It’s crucial to conduct thorough research beyond past dividend performance. Despite impressive dividend histories, some stocks may not deliver satisfactory long-term shareholder returns.
Consider reading: Best Multibagger Stocks in India
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 paying stocks 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 with 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 with 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.
Consider reading: Zero Debt Companies in India
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 in India:
Advantages:
- 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.
Disadvantages:
- 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.
Consider reading: Top 100 Best Penny Stocks List to Buy in India
Tax Applicable on Dividends from Stocks in India
If you live in India and get dividend income from shares, you’ll have to pay tax based on how much you earn overall. If you don’t live in India but still get dividends from here, you’ll usually pay a 20% tax. But, if your home country has a special agreement with India, you might pay less.
Now, the company or fund that gives you this dividend will cut some tax from your payment if you get more than Rs. 5,000 in a year. Typically, they cut 10% for people living in India and 20% for those living outside. But because of COVID-19, between 14 May 2020 and 31 March 2021, they only cut 7.5% for those living in India. When you file your taxes, you can subtract this cut amount from your total tax.
Here’s a tip: If you took a loan to buy shares and earn dividends, you can reduce your tax a bit. Let’s say you earn Rs. 10,000 as dividend, you can subtract up to Rs. 2,000 (that’s the interest you paid for the loan) before paying tax.
Remember, when you’re filling out your tax form, under the section ‘Income from other sources’, you need to mention your full dividend amount. Then, you can mention any tax cuts or deductions you have.
Final Thoughts on Highest Dividend Paying Stocks in India
In conclusion, investing in the highest dividend paying stocks in India can be a smart way to generate a steady stream of income and build wealth over the long term.
By choosing the right stocks with high dividend yields and strong financial health, investors can potentially earn attractive returns and achieve their financial goals.
However, it’s important to consider the risks associated with dividend-paying stocks, such as potential fluctuations in the stock’s price and changes in dividend policies.
It’s also essential to do your own research and consult a financial advisor before making any investment decisions.
By taking a strategic and thoughtful approach, investors can choose the highest dividend-paying stocks that align with their investment goals and risk tolerance.
Overall, high dividend-paying stocks can be a valuable addition to any investment portfolio, providing a reliable source of income and potential for long-term growth.
FAQ on the Highest Dividend Paying Stocks in India
Which Indian stocks gives highest dividend?
The highest dividend-paying stocks in India typically include prominent companies with stable earnings such as Coal India Ltd., known for its generous dividend yield, as well as Oil and Natural Gas Corporation (ONGC), and Indian Oil Corporation Ltd. (IOCL), which consistently deliver high dividends to shareholders.
What are the 5 highest dividend paying stocks in India?
The Top 5 highest dividend paying stocks in India are Vedanta, Coal India, ONGC, Castrol India, TCS. They have given consistent dividends over the years.
Which stock give monthly dividends?
In India, stocks that distribute dividends monthly are rare, but one can look for companies with consistent dividend histories. Typically, companies pay quarterly, half-yearly, or annual dividends. Investors can research or consult financial advisors for current stock options offering regular dividends and their payment frequencies to ensure monthly income.
