High Dividend Stocks India (2025): Top Yields & Sector Insights
Investors often prefer dividend paying stocks because they provide an additional source of income. In India, many investors actively seek high dividend-paying shares to generate regular dividend returns. The dual appeal of consistent dividends and potential capital appreciation makes these stocks highly attractive. Moreover, investing in India’s top dividend-paying companies not only ensures a steady income stream but also serves as an indicator of a company’s strong financial performance. 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 | 311.70 | 3.16 | 135,231.22 | 376.00 | 234.01 | 10.14 | 13.74 | 1.79 | 41.59 | 0.74 | 71.92 | 72.81 | Largecap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | 2.07 |
| CAST | Castrol India Ltd | CASTROLIND | /stocks/castrol-india-CAST | Commodity Chemicals | 203.21 | 6.40 | 20,099.96 | 284.40 | 162.60 | 21.68 | 29.11 | 8.82 | 42.15 | -4.19 | 87.98 | 58.57 | Smallcap | Materials | Chemicals | Commodity Chemicals | -0.38 |
| CHPC | Chennai Petroleum Corporation Ltd | CHENNPETRO | /stocks/chennai-petroleum-corporation-CHPC | Oil & Gas - Refining & Marketing | 619.55 | 0.81 | 9,225.81 | 1,275.00 | 433.10 | 43.09 | 13.74 | 0.99 | 33.69 | -40.46 | 121.86 | 903.32 | Smallcap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | 0.15 |
| COAL | Coal India Ltd | COALINDIA | /stocks/coal-india-COAL | Mining - Coal | 389.10 | 6.55 | 239,791.76 | 543.55 | 349.25 | 6.41 | 29.11 | 2.87 | 51.52 | -14.15 | 112.80 | 178.23 | Largecap | Energy | Metals & Mining | Coal & Consumable Fuels | -0.09 |
| GESC | Great Eastern Shipping Company Ltd | GESHIP | /stocks/great-eastern-shipping-company-GESC | Oil & Gas - Storage & Transportation | 900.70 | 4.86 | 12,859.04 | 1,543.70 | 797.50 | 4.92 | 13.74 | 1.04 | 23.06 | -16.91 | 132.44 | 293.92 | Smallcap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Storage & Transportation | -1.28 |
| GPPL | Gujarat Pipavav Port Ltd | GPPL | /stocks/gujarat-pipavav-port-GPPL | Ports | 137.47 | 5.31 | 6,645.85 | 250.69 | 122.50 | 19.43 | 42.79 | 2.87 | 14.79 | -36.81 | 57.74 | 146.58 | Smallcap | Transportation | Transportation Infrastructure | Marine Ports & Services | -0.85 |
| HPCL | Hindustan Petroleum Corp Ltd | HINDPETRO | /stocks/hindustan-petroleum-corp-HPCL | Oil & Gas - Refining & Marketing | 391.10 | 5.37 | 83,219.14 | 457.15 | 287.55 | 5.20 | 13.74 | 1.77 | 40.45 | 16.02 | 117.04 | 181.57 | Midcap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | 0.93 |
| IOC | Indian Oil Corporation Ltd | IOC | /stocks/indian-oil-corporation-IOC | Oil & Gas - Refining & Marketing | 135.78 | 8.62 | 191,738.17 | 185.97 | 110.72 | 4.59 | 13.74 | 1.02 | 25.19 | -23.18 | 61.64 | 153.08 | Largecap | Energy | Oil, Gas & Consumable Fuels | Oil & Gas Refining & Marketing | 1.88 |
| ONGC | Oil and Natural Gas Corporation Ltd | ONGC | /stocks/oil-and-natural-gas-corporation-ONGC | Oil & Gas - Exploration & Production | 245.68 | 4.99 | 309,072.30 | 345.00 | 205.00 | 6.28 | 13.74 | 0.85 | 14.73 | -13.25 | 53.12 | 248.48 | Largecap | Energy | Oil, Gas & Consumable Fuels | Integrated Oil & Gas | 0.01 |
| VDAN | Vedanta Ltd | VEDL | /stocks/vedanta-VDAN | Metals - Diversified | 416.30 | 6.75 | 162,577.83 | 526.95 | 363.00 | 38.35 | 29.11 | 3.86 | 9.27 | 2.46 | 1.95 | 425.96 | Largecap | Materials | Metals & Mining | Diversified Metals & Mining | 0.84 |
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
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’.
- 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 model portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered investment experts (also known as smallcase managers)
- smallcase offers over 500+ stock portfolios, created by 200+ managers
Here are a few popular smallcases among new investors:
Disclosures for aforementioned smallcases
What is a Dividend?
A dividend is a reward, typically in cash, that a company gives to its shareholders out of its profits. Although not mandatory, dividends are a common way for companies to share profits with investors. When a company announces a dividend, it sets a record date — shareholders on record by that date are eligible to receive the dividend.
What are High Dividend Paying Stocks?
Understanding the best high yield 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
High dividend yield stocks are those with a higher yield and dividend history compared to a benchmark. These top dividend stocks in India can provide a reliable income stream, which investors often reinvest to enhance returns or allocate toward long-term goals like retirement.
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 the best stocks with high dividend yield:
| Financial Sector | REITS push the sector’s average yield above the broad-market mean; big banks and insurers sit closer to it. |
| Utility Sector | Electric, gas, and water providers offer steady, defensive payouts that rarely sway with the business cycle. |
| Basic Materials Sector | Oil-and-gas explorers and industrial-metals miners drive a high overall yield, whereas aluminium and speciality-chemical names sit on the lower end. |
| Consumer Goods Sector | Tobacco companies dominate the top of the yield table, while the rest of the sector shows more modest but selective opportunities. |
| Services Sector | From gaming to shipping, this diverse group generally posts yields that outpace the broader market. |
| Technology Sector | Payouts are usually muted, yet telecom operators create a pocket of higher-yield names within the sector. |
| Healthcare Sector | Drug manufacturers anchor the upper range, keeping the sector’s blended yield broadly aligned with the market average. |
| Industrial Goods Sector | Overall yields lag behind those of most other groups, but careful stock picking can still uncover respectable dividend yields. |
Advantages of the Highest Dividend Paying Indian Stocks
- Total-Return Lift: Regular cash pay-outs from regular dividend stocks come on top of any share-price gains, so overall returns of high-dividend equities can outpace those of no-dividend peers over long stretches.
- Relative Stability: Firms that distribute sizeable dividends are typically mature businesses with predictable earnings, which tends to dampen day-to-day price swings.
- Inflation Buffer: Companies often raise dividends over time, helping the income stream keep better pace with rising living costs than fixed-coupon instruments.
- Tax Considerations: In many situations, dividend income faces a lighter effective tax bite than interest, adding another layer to the net return.
- Reinvestment Effect: Redirecting pay-outs from passive income dividend stocks into additional shares can quietly compound wealth without fresh capital.
However, it’s important to align these benefits with your personal investment goals and risk tolerance before investing in 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 for long-term are sustainable. For example, shares with an unusually high dividend yield may belong to companies under financial distress. Stocks with high dividends may appear enticing, but if the yield is driven by declining share prices rather than financial health, it could indicate trouble.
- Interest Rate Risk: Even the best dividend stocks India 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.
Factors to Consider Before Investing in the Highest Dividend Paying Stocks
- Dividend Yield: Yields of 4% may signal generous pay-outs; utilities and consumer-staples companies frequently sit in this range.
- Dividend Growth: A steady pattern of rising dividends per share suggests the business values long-term shareholder income.
- Earnings & Cash Flow: Reliable, expanding cash flows tend to underpin dividends from Nifty 50 dividend stocks through good times and bad.
- Payout Ratio: When earnings are shared without draining future dividend investment plans, dividends usually prove more sustainable.
- Sector & Macro Backdrop: Industry characteristics—as well as inflation and interest-rate moves—shape the resilience of pay-outs.
- Overall Financial Health: Firms with solid balance sheets and sound credit profiles are generally better placed to maintain or raise 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 in India 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
Investors can use Tickertape stock screener to evaluate the best dividend stocks 2025. Investors can also explore readymade stock portfolios focusing on tax-efficient 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 stable dividend stocks in India. It can lead to sustained benefits over time. However, investors must do their due diligence and research before investing.
The Nifty dividend stocks, 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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