Highest Dividend Paying Stocks in India

For an investor looking to generate income from dividends, he would definitely turn his attention to stocks with a high dividend yield. Recently SBI Securities, one of the leading domestic brokerage houses, put out a claim of companies providing the highest dividend yield in India. In this blog, we have highlighted the top 10 highest dividend paying stocks in India for your convenience.

 

Definition of Dividend Yield

Dividend Yield is a financial ratio that represents how much a company pays in yearly dividends concerning its given stock price. It is calculated as follows: 

 % Dividend Yield = {Dividend / Share Price} *100

Highest Dividend Paying Stocks for 2025 in India

SBI Securities' key picks for the top 10 highest dividend paying stocks in India based on the high dividend yield are as follows:  

 

 

1. Chennai Petroleum Corporation: Dividend & Share Overview

CPCL is involved in crude oil refining for producing and supplying petroleum products of various types along with the manufacturing and sales of lubricating oil additives.

 Dividend Yield: 9.2%  

 Share Price: Rs.600.1  

 Market Cap: Rs.8,936.2 Cr  

 Annual Dividend (FY24): Rs.55  

To buy a high dividend yield stock, open a demat account.

 

2. Indian Oil Corporation (IOC): Dividend & Share Overview

It has operations across the whole hydrocarbon value chain, from petrochemicals and natural gas exploration and production to R&D, pipeline transportation, and petroleum product marketing. It holds the top spot in India's oil refining and petroleum marketing industry.

Dividend Yield: 9.1%    

Share Price: Rs.131.3    

Market Cap: Rs.1,85,341.3 Cr  

Annual Dividend: Rs.12  

 

3. Oriental Carbon & Chemicals: Dividend & Share Overview

Oriental Carbon and Chemicals Limited is a chemicals-based company that sells insoluble sulphur, sulphuric acid, and other chemicals along with certain investments. 

The company occupies a market share of almost 10% on the global platform and a 55-60% market share on the domestic platform for insoluble sulphur and is serving more than 40 customers, including the major manufacturers of tyres.

Dividend Yield: 8.5%   

Share Price: Rs.164.8   

Market Cap: Rs.164.6 Cr  

Annual Dividend: Rs.14  

 

4. IL&FS Investment Managers: Dividend & Share Overview

IL&FS Investment Managers Limited is a private equity fund management domestic company dealing with investment banking, asset management, and financing for infrastructure.

Dividend Yield: 7.6%   

Share Price: Rs.9.2  

Market Cap: Rs.288.3 Cr  

Annual Dividend: Rs.0.7    

 

5. Stovec Industries: Dividend & Share Overview

SIL is quite certainly a subsidiary of SPG Prints B.V., Netherlands. It is a printing solutions provider that provides capital & consumables for the textile printing industry and for the non-textile segment.

Dividend Yield: 7.2%  

Share Price: Rs.2,422.6  

Market Cap: Rs.505.8 Cr  

Annual Dividend: Rs.174  

  

6. Vedanta Ltd.: Dividend & Share Overview

Vedanta Ltd is a group with various interests in natural resources and is mainly involved in exploration, mining and processing of minerals and oil and gas. Conversely, the group explores, mines and sells zinc, lead, silver, copper, aluminum, iron ore, and oil and gas.

Dividend Yield: 6.5%  

Share Price: Rs.457.3    

Market Cap: Rs.1,78,802.5 Cr  

Annual Dividend: Rs.29.5  

 

7. Coal India Ltd.: Dividend & Share Overview 

Coal India Ltd. (CIL) is primarily engaged in coal mining and production and coal washeries. The main consumers of coal production are in the power and steel sector. Others include companies in sectors like cement, fertilizers, brick kilns, and so forth.

Dividend Yield: 6.4%   

Share Price: Rs.398.1    

Market Cap: 2,45,338.2 Cr  

Annual Dividend: Rs.25.5  

 

8. Castrol India: Dividend & Share Overview 

Dividend Yield: 6.3%  

Share Price: Rs.206.9  

Market Cap: 5,804.79 Cr  

Annual Dividend: Rs.13  

Market Cap: Rs.20,464.9 Cr  

 

9. DB Corp: Dividend & Share Overview 

D.B. Corp. Ltd., a corporation that publishes newspapers, broadcasts radio, provides integrated internet and mobile interactive services, and engages in event management, is best known for its Dainik Bhaskar (Hindi daily), Divya Bhaskar, and Saurashtra Samachar (Gujarat daily), and Divya Marathi (Marathi daily).

Dividend Yield: 5.5%

Share Price: Rs.234.5

Annual Dividend: Rs.13

Market Cap: Rs.4,177.7 Cr

 

10. Shri Dinesh Mills: Dividend & Share Overview 

The latest dividend-related information is not mentioned in the report of the source document.

The information is as of the last dividend date i.e. 23 May 2024.

Dividend Yield: 13.79%

Share Price: Rs.217

Annual dividend: Rs.40

Market Cap: Rs.3,875 Cr

 

Why Invest in High Dividend Yield Stocks?

High dividend yield stocks can be an excellent addition to a portfolio for:

• Regular passive income

• Reduced risk for large capital losses in a downturn market

• Achievable total returns when combined with other forms of stock appreciation.

 

 

Risks

• A very high dividend yield can also be unsustainable. If a company's earnings decline or it undergoes some financial turmoil, it may reduce or omit dividend payments entirely. 

• On rare occasions, companies with high yields are regarded thus because of their sharp fall in stock prices. Such deep-seated issues might indicate that the stock is indeed going to be a "value trap" instead of a worthy investment.

• High dividend paying stocks such as utilities and REITs can be highly sensitive to increasing interest rates.

 

Conclusion

Investing in high dividend paying stocks in India can be a way of regular income. These stocks provide a steady cash inflow while reducing risks during market fluctuations. SBI Securities' list is a good chance to start looking at the top dividend-paying stocks in India for 2025.

However, high dividend yield stocks should not be the sole factor in your investment decision. You need to ensure that the business is fundamentally strong and can sustain dividends in the foreseeable future. Carry out your research or consult with your financial planner before investing.

 

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Disclaimer: No buy or sell recommendation. No investment or trading advice advice it is. Always discuss with some eligible financial advisor before making financial decisions.