For investors who want steady income along with long-term wealth creation, dividend-paying stocks are a smart choice. These companies not only deliver consistent returns but also share a portion of their profits with shareholders in the form of dividends.
In this guide, we’ll cover the best dividend-paying stocks in India this year, their dividend yields, and why they are worth considering.
What are Dividend-Paying Stocks?
Dividend-paying stocks are shares of companies that distribute a portion of their profits to shareholders. Investors receive dividends either quarterly, semi-annually, or annually, in addition to capital appreciation.
✅ Benefits of Dividend Stocks:
Regular passive income
Lower market volatility compared to growth stocks
Reinvestment opportunities (Dividend Reinvestment Plan)
Ideal for conservative and long-term investors
Best Dividend-Paying Stocks in India (2025)
Here are some of the top dividend-paying stocks in India this year based on dividend yield, consistency, and financial strength:
| Company | Sector | Dividend Yield (%) | Key Highlight |
|---|---|---|---|
| Coal India | Mining & Energy | ~7.5% | Highest dividend-paying PSU |
| ONGC | Oil & Gas | ~5.8% | Strong government-backed company |
| Hindustan Zinc | Metals | ~5.5% | Consistent high dividend payouts |
| ITC Ltd | FMCG | ~3.3% | Diversified business, stable cash flow |
| NTPC Ltd | Power | ~4.5% | Leading PSU in power sector |
| Power Grid Corp | Power Utility | ~4.0% | Strong government backing |
| Indian Oil Corp | Oil & Gas | ~5.2% | One of India’s largest refiners |
| Bajaj Auto | Automobile | ~3.8% | Debt-free balance sheet, regular dividends |
| TCS | IT Services | ~3.0% | Large-cap IT stock with reliable payouts |
| Infosys | IT Services | ~2.5% | Globally recognized IT company |
(Dividend yields are approximate and subject to market changes.)
🔎 How to Pick the Best Dividend Stocks?
When choosing dividend-paying stocks, consider:
Dividend yield (%) – Higher is better, but not always safe.
Dividend payout ratio – Should be sustainable, not too high.
Company fundamentals – Strong earnings, low debt, and consistent cash flow.
Sector stability – Companies in power, oil & gas, FMCG, and IT often provide stable dividends.
Advantages of Dividend Stocks in India
Provides passive income in addition to price appreciation
Safer than growth stocks in volatile markets
Helps in long-term wealth creation when reinvested
Suitable for retirees and conservative investors
❓ FAQs –
1. Which stock gives the highest dividend in India?
Coal India and Hindustan Zinc are among the highest dividend payers this year.
2. Are dividend-paying stocks safe?
They are generally safer than growth stocks but still subject to market risk.
3. How often do companies pay dividends?
Usually quarterly, semi-annually, or annually, depending on company policy.
4. Should I reinvest dividends?
Yes, reinvesting can compound your wealth over time.
5. Are dividends taxable in India?
Yes, dividends are added to your income and taxed as per your slab.
Published on : 28th August
Published by : SMITA
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