Top High Dividend Paying Stocks in India (2025)
Investors prefer investing in high dividend-yielding stocks as they benefit from additional income from dividend-yielding companies. As a result, many investors in India prefer high dividend paying stocks for regular dividend returns. The allure of dividends makes a stock attractive, as does the potential for earnings from regular dividends and capital appreciation. Moreover, investing in India’s highest dividend-paying stocks can ensure a steady income stream and that the company is doing well financially. In this article, we will explore the top 10 highest dividend paying stocks, the advantages of investing in these stocks, and key factors to consider before investing in dividend-yielding stocks.
Highest Dividend Paying Stocks in 2025 from Nifty 500
Here are the top 10 dividend paying stocks in India from Nifty 500:
| symbol | Company | ticker | slug | Sector | Market Price | Div. Yield (%) | Market Cap (Cr.) | 52W High | 52W Low | PE Ratio | Industry PE | PB Ratio | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BPCL | Bharat Petroleum Corporation Ltd | BPCL | /stocks/bharat-petroleum-corporation-BPCL | Oil & Gas - Refining & Marketing | 277.65 | 7.45 | 120,458.60 | 376.00 | 222.55 | 4.48 | 11.65 | 1.59 | 41.59 | 21.18 | 42.86 | 17.96 | Largecap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | -2.94 |
| CAST | Castrol India Ltd | CASTROLIND | /stocks/castrol-india-CAST | Commodity Chemicals | 190.25 | 3.94 | 18,818.05 | 284.40 | 166.05 | 21.78 | 28.32 | 8.87 | 43.12 | 7.03 | 52.44 | 49.80 | Smallcap | Materials | Chemicals | Commodity Chemicals | -3.42 |
| CHPC | Chennai Petroleum Corporation Ltd | CHENNPETRO | /stocks/chennai-petroleum-corporation-CHPC | Oil & Gas - Refining & Marketing | 601.60 | 9.14 | 8,958.51 | 1,275.00 | 562.55 | 3.26 | 11.65 | 0.96 | 33.69 | -27.84 | 439.79 | 311.49 | Smallcap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | -3.02 |
| COAL | Coal India Ltd | COALINDIA | /stocks/coal-india-COAL | Mining - Coal | 368.50 | 6.92 | 227,096.54 | 543.55 | 364.70 | 6.07 | 28.32 | 2.72 | 51.52 | -3.31 | 131.25 | 74.19 | Largecap | Energy | Metals & Mining | Coal & Consumable Fuels | -0.57 |
| GESC | Great Eastern Shipping Company Ltd | GESHIP | /stocks/great-eastern-shipping-company-GESC | Oil & Gas - Storage & Transportation | 937.85 | 4.67 | 13,389.42 | 1,543.70 | 890.00 | 5.12 | 11.65 | 1.08 | 23.06 | -2.37 | 198.82 | 194.09 | Smallcap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Storage & Transportation | -3.61 |
| GPPL | Gujarat Pipavav Port Ltd | GPPL | /stocks/gujarat-pipavav-port-GPPL | Ports | 166.43 | 4.39 | 8,045.89 | 250.69 | 153.00 | 23.53 | 45.34 | 3.48 | 14.79 | 0.65 | 69.48 | 86.37 | Smallcap | Transportation | Transportation Infrastructure | Marine Ports & Services | -1.41 |
| HPCL | Hindustan Petroleum Corp Ltd | HINDPETRO | /stocks/hindustan-petroleum-corp-HPCL | Oil & Gas - Refining & Marketing | 388.45 | 5.41 | 82,655.27 | 457.15 | 277.67 | 5.16 | 11.65 | 1.76 | 40.45 | 29.25 | 82.57 | 130.90 | Midcap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | -5.77 |
| IOC | Indian Oil Corporation Ltd | IOC | /stocks/indian-oil-corporation-IOC | Oil & Gas - Refining & Marketing | 130.28 | 8.98 | 183,971.49 | 196.80 | 128.50 | 4.41 | 11.65 | 0.98 | 25.19 | -3.71 | 63.98 | 53.90 | Largecap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | -5.10 |
| ONGC | Oil and Natural Gas Corporation Ltd | ONGC | /stocks/oil-and-natural-gas-corporation-ONGC | Oil & Gas - Exploration & Production | 263.02 | 4.66 | 330,886.50 | 345.00 | 209.70 | 6.72 | 11.65 | 0.91 | 14.73 | 17.74 | 59.45 | 109.66 | Largecap | Energy | Oil, Gas & Consumable Fuels | Integrated Oil & Gas | -1.90 |
| VDAN | Vedanta Ltd | VEDL | /stocks/vedanta-VDAN | Metals - Diversified | 432.15 | 6.50 | 168,712.41 | 526.95 | 249.50 | 39.80 | 28.32 | 4.01 | 9.27 | 58.56 | 29.91 | 169.34 | Largecap | Materials | Metals & Mining | Diversified Metals & Mining | -2.21 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Selection Criteria: Stock Universe: Nifty 500 | Dividend Yield: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Stock Screener Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of the Top 10 Highest Dividend Paying Stocks in India
Let us now look at an overview of the top 10 highest paying dividend stocks in India on our list of top 10 dividend shares:
Chennai Petroleum Corporation Ltd
Chennai Petroleum Corporation Ltd (CPCL) was founded in 1965 and is a subsidiary of Indian Oil Corporation. The company is primarily involved in the refining of crude oil and the manufacture of petroleum products. It operates two major refineries in Tamil Nadu, which contribute to meeting India’s domestic fuel demands.
Indian Oil Corporation Ltd
Founded in 1959, Indian Oil Corporation Ltd (IOCL) is one of the largest oil companies in India. It operates in the refining, marketing, and distribution of petroleum products, as well as the exploration and production of crude oil and natural gas. The company plays a crucial role in India’s energy security and is owned primarily by the government. IOCL’s vast network of fuel stations and refineries helps it remain a dominant player in the oil and gas sector.
Bharat Petroleum Corporation Ltd
Bharat Petroleum Corporation Ltd (BPCL), established in 1952, is another leading player in India’s oil and gas industry, focusing on refining, marketing, and distributing petroleum products. BPCL operates multiple refineries and an extensive network of fuel stations, serving millions across the country.
Vedanta Ltd
Founded in 1976, Vedanta Ltd is a diversified natural resources company engaged in the exploration and production of oil and gas, zinc, lead, silver, copper, iron ore, and aluminium. It is one of the largest mining companies in India with operations spanning across multiple countries.
Coal India Ltd
Coal India Ltd, established in 1975, is the largest coal-producing company in the world. It operates under the Ministry of Coal, Government of India, and accounts for a large portion of India’s total coal production. The company has multiple subsidiaries and plays a key role in the country’s energy sector.
Hindustan Petroleum Corporation Ltd
Hindustan Petroleum Corporation Ltd (HPCL), founded in 1974, is a major player in the oil and gas refining and marketing sector in India. The company operates multiple refineries and has a vast network of distribution points and petrol stations across the country. HPCL is a subsidiary of Oil and Natural Gas Corporation (ONGC).
Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Ltd (ONGC) was established in 1956 and is India’s largest oil and gas exploration and production company. It is involved in the exploration, drilling, and production of crude oil and natural gas, both offshore and onshore, contributing significantly to the country’s energy needs.
Gujarat Pipavav Port Ltd
Gujarat Pipavav Port Ltd, incorporated in 1992, operates the Pipavav port in Gujarat, which is one of India’s first private sector ports. The company provides port infrastructure for cargo handling, including container and bulk cargo.
Great Eastern Shipping Company Ltd
The Great Eastern Shipping Company Ltd, founded in 1948, is India’s largest private sector shipping company. It offers shipping services such as transportation of crude oil, petroleum products, gas, and dry bulk commodities. The company also operates in offshore oilfield services, providing drilling and logistics support to the oil and gas industry.
Castrol India Ltd
Castrol India Ltd, established in 1910, is a leading manufacturer and distributor of automotive and industrial lubricants. It provides a wide range of high-performance engine oils and greases for vehicles and machinery, with a strong focus on innovation and sustainability. The company has a significant presence in the Indian lubricant market, supported by a robust distribution network.
How to Invest in the Highest Dividend Paying Stocks via smallcase?
Let’s go through a few steps you can follow to approach dividend investing in high dividend paying stocks via smallcase:
- Log in with any Indian smallcase broker and enter your password on the smallcase app or website.
- Explore smallcases like Dividend Aristocrats by Windmill Capital or the DiviGrowth Capital smallcase managed by Green Portfolio to find out which suits your needs best. After aligning your investment goals with a particular smallcase, make your choice.
- Review your personal details and the billing plan before placing an order.
- Next, click on ‘Invest now’.
- Lastly, choose between Monthly SIP or One Time payment method for the highest dividend stocks of your choosing.
- Finally, click on ‘Confirm Orders’.
- Congrats! You have now invested in high dividend stocks in India!
- Disclosure for Dividend Aristocrat smallcase
- Disclosure for Dividend Stars smallcase
- Disclosure for DiviGrowth Capital smallcase
- Disclosure for High Dividend Yield and Capital Appreciation smallcase
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 500+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
What is a Dividend?
A dividend is a reward, either in cash or other forms, bestowed upon shareholders by a company. The company’s board of directors determines dividends, subject to shareholder approval. While not mandatory, dividends are typically a share of the company’s profits distributed to its shareholders.
After settling debts, a company may allocate residual profits for shareholder rewards as dividends. However, in cases of cash shortages or the need for reinvestment, dividend giving companies pay dividends and may opt not to pay dividends. When declaring dividends, a company establishes a record date; shareholders registered by that date qualify for a dividend payout based on their shareholding. The company usually dispatches dividend checks to shareholders within a week. Stocks are commonly traded with dividends included until two business days before the record date, after which they become ex-dividend.
What are High Dividend Paying Stocks?
Understanding the best dividend stocks in India involves grasping the concept of ‘dividend yield.’ This term refers to the income investors receive relative to the current stock price. It’s calculated using the formula:
Dividend Yield = (Annual Dividend / Share Price) x 100
Investors seek out high dividend-paying stocks, those with a higher yield compared to a benchmark. These best dividend paying stocks in India can provide a reliable income stream, which investors often reinvest to enhance returns or allocate toward long-term goals like retirement.
Investors should evaluate the potential of the best dividend stocks based on their consistent dividend payments and the steady growth in the dividend percentage. This ensures the selection of high dividend Indian stocks that offer both share price appreciation and regular distributions, making them a valuable investment.
Dividend Yield vs Dividend Ratio – Key Differences
| Dividend yield | A dividend yield tells you the rate of return in cash dividends to shareholders. The percentage represents dividend yield instead of the actual dollar value. It makes it easier for shareholders to calculate dividend returns based on the percentage value. |
| Dividend payout ratio | On the other hand, a dividend payout ratio is the proportion of its net income distributed as dividends as compensation to its shareholders. Generally, dividend payout ratios are regarded as better indicators of a company’s financial strength because they directly relate to cash flow. |
Which Sectors Offer the Highest Dividend Paying Indian Stocks?
Our dividend smallcase by Windmill Capital allows you to explore a wide array of investment opportunities in the high dividend paying sector. Investors must take their decisions according to their investment objectives and risk appetite, whether they want a basket heavy on large cap stocks or small or mid cap stocks. They can also choose between term dividend streaks (Dividend – Smart Beta) and long term dividend streaks (Dividend Aristocrats) while making their decision. Let us now look at a few sectors that generally offer high dividend paying Indian stocks:
| Financial Sector | The financial sector stands out as one of the most lucrative for investors, with real estate investment trusts (REITs) and related industries contributing to its high average yield. Notably, banks and insurance companies within the sector often offer comparatively lower yields. |
| Utility Sector | Favoured by dividend investors, the utility sector encompasses diverse industries, including foreign, electric, gas, and water. Despite modest price growth in the last five years, these highest dividend yield stocks are considered defensive due to their stable revenue, which remains unaffected by economic conditions. |
| Basic Materials Sector | The basic materials sector presents a high overall dividend yield, primarily propelled by the Oil and Gas Drilling & Exploration and Industrial Metals & Mining industries. However, some sub-industries, such as Aluminum, Silver, and Specialty Chemicals, yield less than 2%. |
| Consumer Goods Sector | Led by cigarette and tobacco product industries, the consumer goods sector is renowned for its high yields. Despite the prevalence of low-yield industries, there are still promising investment opportunities within this sector. |
| Services Sector | As the largest sector, services encompass stocks from 60 industries, including gaming and shipping. Notably, the average dividend yield in this sector tends to surpass that of the overall market. |
| Technology Sector | Comprising 32 industries, the technology sector is spearheaded by the domestic telecom industry, known for its high-yield stocks. While the tech industry is not generally associated with attractive dividends, some of the highest dividend paying companies in India do incorporate dividends into their financial strategies. |
| Healthcare Sector | The healthcare sector offers a varied landscape in terms of dividend yield, with drug manufacturer industries often providing the most favourable returns. Despite this variation, the overall sector’s average yield aligns with the broader market. |
| Industrial Goods Sector | Despite having the lowest average dividend yields, the industrial goods sector still offers opportunities for dividend investors to find stocks with decent payouts. Investors should carefully navigate the unique characteristics of this sector to uncover promising investments. |
Advantages of the Highest Dividend Paying Indian Stocks
Let’s explore why high dividend-paying stocks in India can be a good investment option:
- Potential for Higher Total Returns: In addition to dividend income, the top ten dividend stocks in India also offer potential for capital appreciation. Historically, top dividend yield stocks have outperformed those with low or no dividends, offering higher returns in the long run. Some of the highest dividend stocks India have consistently delivered on this promise.
- Lower Risk: Companies paying high dividends tend to be well-established and financially stable, with consistent earnings. This makes the best dividend yielding stocks in India less volatile and less risky than other stocks. For instance, the top 10 dividend stocks are usually regarded as safer options.
- Inflation Protection: Dividend income provides a hedge against inflation. Unlike fixed-income investments, dividend payments tend to increase over time, maintaining purchasing power. Investing in high dividend companies ensures you remain protected against inflation in the long run.
- Tax Advantages: In some cases, the best dividend-yield stocks India are taxed at a lower rate than other types of investment income, such as interest income. Therefore, dividends from most dividend-paying shares can provide significant tax benefits.
- Reinvestment Opportunities: Dividends can be reinvested into the company, which compounds returns over time. This is a feature that makes shares with the highest dividend particularly appealing to long-term investors.
However, it’s important to align these benefits with your personal investment goals and risk tolerance before investing in the highest dividend-paying stocks in India.
Risks Associated with High Dividend Stocks
While high dividend yield companies can be attractive, they come with certain risks:
- Fool’s Gold Dilemma: Not all high dividend stocks are sustainable. For example, shares with an unusually high dividend yield may belong to companies under financial distress. Stocks with high dividend may appear enticing, but if the yield is driven by declining share prices rather than financial health, it could indicate trouble. It’s essential to assess the reasons behind the elevated yield of high dividend blue chip stocks in India or highly dividend stock.
- Interest Rate Risk: Dividend-paying stocks are sensitive to interest rate changes. When rates are low, monthly dividend paying stocks in India and others with attractive yields are highly desirable. However, rising interest rates can reduce their appeal as investors shift to safer alternatives like government bonds. This shift can impact best dividend yield stocks India, particularly during periods of monetary tightening.
Diversifying across asset classes, such as with smallcase, can help mitigate these risks while investing in top dividend paying stocks in India 2025.
Factors to Consider Before Investing in the Highest Dividend Paying Stocks
When choosing the best dividend-paying stocks for the long-term in India, investors must consider various criteria to identify stocks offering sustainable and consistent returns. Here’s what to focus on:
1. Dividend Yield
A high dividend yield, generally 4% or higher, is a key indicator of attractive stocks with high dividend yield. This metric varies across industries, but some of the highest dividend yield stocks in India are found in sectors like utilities and consumer staples. Identifying 10 dividend yield stocks with reliable and stable returns is crucial for investors. For example, shares with highest dividend are a great choice for generating steady income over time.
2. Dividend Growth
A company’s ability to increase its dividends consistently is a hallmark of consistent dividend paying stocks. Companies demonstrating stable growth in dividends per share often feature among the top dividend stocks in India. By tracking dividend growth, investors can identify the best dividend yield stocks India, as these stocks reflect financial strength and a commitment to rewarding shareholders.
3. Earnings and Cash Flow
The sustainability of dividends is directly linked to the company’s earnings and cash flow. A strong financial foundation is crucial for high dividend yield companies, ensuring they can weather market fluctuations and maintain payouts. Investors seeking high dividend blue chip stocks in India should prioritise firms with consistent cash flow growth, as these are often the best dividend stocks India 2025.
4. Payout Ratio
The payout ratio indicates how much of a company’s earnings are distributed as dividends. The most dividend-paying shares maintain a healthy balance between dividends and reinvestment into their business. For instance, the company paying highest dividend in any sector will typically have a reasonable payout ratio, safeguarding future growth while rewarding shareholders.
5. Industry and Market Conditions
Certain industries, such as utilities and consumer staples, are known for good dividend paying stocks India. Market conditions, including inflation and interest rates, can also impact the performance of the highest dividend paying stocks in India 2025. Monitoring such conditions helps investors identify emerging opportunities in top dividend paying stocks in India 2025, including monthly dividend paying stocks in India.
6. Company Financials
Evaluating a company’s financial health is paramount. Strong financials indicate the company can sustain or grow its dividends. For example, high dividend per share is often found in highly dividend stock from firms with robust balance sheets and excellent credit ratings. Examining the financial statements of the best dividend stocks 2025 India will provide insights into their long-term viability.
Investors should always perform their due diligence and/or consult with financial advisors before investing in best stocks that give dividends.
Taxation on Dividends in India – Income Tax Implications
| Topic | Information |
| Dividend Tax Exemption | Dividends from Indian companies were exempt until 31 March 2020 because companies paid dividend distribution tax (DDT) before distributing dividends. |
| Change in Taxation | From 1 April 2020, dividends are taxable for investors. The Finance Act, 2020 removed DDT for companies and mutual funds, and the 10% tax on dividends over Rs.10 lakh. |
| TDS on Dividends | The Finance Act, 2020 introduced TDS on dividends. The normal TDS rate is 10% on dividends exceeding Rs.5,000. A COVID-19 relief measure reduced TDS to 7.5% from 14 May 2020 to 31 March 2021. |
| Tax Credit | The deducted tax (TDS) can be credited against the total tax liability when filing the income tax return (ITR). |
| Resident Example | Mr Ravi received Rs.6,000 in dividends on 15 June 2023. The company deducted 10% TDS (Rs.600), so Ravi received Rs.5,400. The dividend is taxable at FY 2023-24 rates. |
| Non-Resident TDS | Non-residents face a 20% TDS, subject to double taxation avoidance agreements (DTAA). To benefit from lower rates, non-residents must submit Form 10F, a declaration of beneficial ownership, and a tax residency certificate. Without these, higher TDS applies, claimable when filing ITR. |
| Interest Deduction | Investors can deduct interest expenses against dividends, capped at 20% of the dividend income. Other expenses like commissions or salaries are not deductible. |
| Example for Interest Deduction | If Mr Ravi borrowed money to buy shares and the dividend paid is Rs. 2,700 in interest in FY 2023-24, only Rs. 1,200 is deductible. |
To Wrap It Up…
In conclusion, investing in India’s highest dividend yield stocks can be a good strategy for investors looking for a steady income source. Many companies offer dividends as compensation to their shareholders while signalling their healthy financial growth to keep the investor’s interest intact. All in all, investors can refer to our prepared dividend smallcases (offering Dividend portfolios like Smart Beta, Dividend Stars, and Dividend Aristocrats) that include the highest dividend paying companies offering high dividends to their shareholders over time.
Frequently Asked Questions About Highest Dividend Paying Stocks
The list of dividend paying companies below sorts dividend-paying companies by their dividend yield:
1. Chennai Petroleum Corporation Ltd
2. Indian Oil Corporation Ltd
3. Bharat Petroleum Corporation Ltd
Note: The list of top dividend paying stocks in India is dated 25th November 2024.
Investors can use Tickertape stock screener to evaluate dividend stocks. Investors can also explore readymade stock portfolios focusing on dividend stocks, such as Dividend Aristocrats. One must consider the risk appetite and investment goals before investing.
Investors can enjoy the advantages of capital growth and steady income by investing in good dividend stocks in India. It can lead to sustained benefits over time. However, investors must do their due diligence and research before investing.
The best stocks for dividends, with lower volatility, attract investors seeking reduced risk, particularly those approaching or in retirement. However, dividend-paying stocks in India pose risks if one is unfamiliar with potential pitfalls.
Dividend paying stocks may offer a steady income and thrive in defensive sectors, demonstrating resilience during economic downturns with lower volatility. These dividend paying stocks, known for their substantial cash reserves, typically represent robust entities with promising long-term prospects.
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