0 hidden charges. 0 forex
debit-card

A List of Indian Companies that Consistently Pay the Highest Dividends

article image

A List of Indian Companies that Consistently Pay the Highest Dividends

Table of Contents

“I do not own a single security anywhere that doesn't pay a dividend, and I formed a mutual-fund company with that very simple philosophy”. said Kevin O’ Leary, a Canadian businessman and investor. If this approach to investing resonates with you, you might want to check out this list of companies that pay the highest dividends consistently.

First up: What Are Dividends?

A dividend is a share of the profit paid to its shareholders for their investment in a company’s equity.
A company's earnings can be used in a variety of ways whenever it produces a profit. 

  1. Invest the profit: In expanding its business, buying inventory, entering a new market and so on.
  2. Distribute the profit to its proprietors
  3. Reward its investors with a percentage of the profit earned

Most large companies pay out dividends once every year. Sometimes, this is done twice.

A list of Indian stocks that give out the highest dividends

Here's a list of stocks that have had the highest dividends over a 10-year period

Company

Industry

Market Cap (Rs Cr)

Current Price (Rs)

Dividend Yield (%)

1Yr Returns (%)

Bharat Petroleum Corporation Ltd.

Refineries

100642.48

463.95

17.03

13.75

Indian Oil Corporation Ltd.

Refineries

100872.71

107.15

11.2

22.44

Indus Towers Ltd.

Telecommunication - Service Provider

57792.92

214.45

9.38

7.33

Hindustan Petroleum Corporation Ltd.

Refineries

36548.9

257.65

8.83

22.1

Coal India Ltd.

Mining & Minerals

87510.74

142

8.45

4.41

SJVN Ltd.

Power Generation-Distribution

10590.8

26.95

8.16

17.43

REC Ltd.

Finance Term Lending

29979.26

151.8

7.25

37.42

Power Finance Corporation Ltd.

Finance Term Lending

34888.68

132.15

7.19

41.69

Oil India Ltd.

Oil Exploration

17670.38

162.95

6.51

70.29

Hindustan Zinc Ltd.

Metal - Non Ferrous

139900.31

331.1

6.43

43.91

NHPC Ltd.

Power Generation-Distribution

26317.99

26.2

6.11

26.57

CESC Ltd.

Power Generation-Distribution

10133.32

764.45

5.89

28.43

NTPC Ltd.

Power Generation-Distribution

115244.88

118.85

5.17

24.71

ITC Ltd.

Cigarettes-Tobacco

259610.73

210.9

5.1

6.11

Power Grid Corporation Of India Ltd.

Power Generation-Distribution

126046.43

180.7

4.98

1.15

Sun TV Network Ltd.

TV Broadcasting & Software Production

20248.07

513.8

4.87

20.5

Ambuja Cements Ltd.

Cement & Construction Materials

78681.19

396.25

4.54

80.65

Oracle Financial Services Software Ltd.

IT - Software

39800.61

4620.6

4.33

51.14

Sanofi India Ltd.

Pharmaceuticals & Drugs

19694.64

8551.5

4.27

2.01

Castrol India Ltd.

Lubricants

13442.17

135.9

4.05

11.39

Additional Top Dividend Stocks in India

Company

Industry

Market Cap (Rs Cr)

Current Price (Rs)

Dividend Yield (%)

1Yr Returns (%)

Hero MotoCorp Ltd.

Automobile Two & Three Wheelers

54930.42

2749.35

3.82

-6.14

Bajaj Auto Ltd.

Automobile Two & Three Wheelers

108464.89

3748.35

3.73

20.31

Indiabulls Housing Finance Ltd.

Finance - Housing

11761.85

254.35

3.54

25.08

Redington (India) Ltd.

Trading

13389.03

342.8

3.38

168.3

Tech Mahindra Ltd.

IT - Software

132546.75

1367.6

3.29

89.7

Hindustan Aeronautics Ltd.

Airlines

35710.91

1067.95

3.09

-14.52

ICICI Securities Ltd.

Finance - Stock Broking

22613.47

700

3.07

49.47

NMDC Ltd.

Mining & Minerals

50523.64

172.4

3.07

81.95

Oil & Natural Gas Corporation Ltd.

Oil Exploration

145239.32

115.45

3.02

45.65

Torrent Power Ltd.

Power Generation-Distribution

22108.37

460

2.39

30.83

Mphasis Ltd.

IT - Software

51481.39

2749.25

2.36

126.12

Colgate-Palmolive (India) Ltd.

Household & Personal Products

45233.93

1663.1

2.28

17

Akzo Nobel India Ltd.

Paints

10139.32

2226.45

2.25

10.24

Larsen & Toubro Ltd.

Engineering - Construction

232660.2

1656.35

2.17

65.48

LIC Housing Finance Ltd.

Finance - Housing

19848.4

393.3

2.16

47.3

Steel Authority Of India Ltd.

Steel & Iron Products

55555.57

134.5

2.08

244.43

Nippon Life India Asset Management Ltd.

Finance - Asset Management

23943.95

386.75

2.07

45.71

Mahanagar Gas Ltd.

Gas Transmission-Marketing

11131.76

1126.95

2.04

17.62

What’s so good about dividends?

If you’ve been a long-term investor and have invested in a certain company for, lets say, 10 years, and the company does not give any dividends. Then, one way to make gains from this investment is to sell your shares at a much higher price. On the other hand, if the company does give dividends, then your capital is growing even if you haven’t sold the stocks.

A quick mini guide to dividend-related terms

Dividend Yield 

This is the annual cash dividend per share, divided by the current share price.

Dividend yield = (Dividend per share / Price per share) * 100

Payout ratio

It’s the ratio of earnings paid as dividends divided by the company’s total earnings.

Mathematically speaking, Payout Ratio = Dividends per share (DPS) / Earnings per share (EPS)

Wrapping Up

As a dividend investor, your earnings strongly depend on the company's fundamentals, as well as its dividend record, to be robust. A weak market, downturn, or slump should not prevent solid dividend-paying firms from paying their shareholders dividends.

If you’re someone who’s new to the whims of market, but still want returns not only through trading, but also through dividends, then it’s always best you get in touch with a professional who can guide you through dividend paying stocks, based on your budget, risk appetite and time horizon.

Frequently Asked Questions (FAQs)

Which are the best dividend-paying Indian stocks for the long term?

  • Bharat Petroleum Corporation Limited
  • Indian Oil Corporation Limited
  • Indus Towers Limited
  • Hindustan Petroleum Corporation Limited
  • Coal India Limited
  • SJVN Limited
  • REC Limited
  • Power Finance Corporation Limited
  • Oil India Limited

Stocks listed here are well-established businesses, and some are even very profitable.

In the National Stock Exchange, which companies pays the most dividends?

  • Aurum Proptech
  • Clariant Chem
  • BPCL
  • Goodyear 
  • PNB Gilts 
  • Ksolves
  • Kewal Kiran
  • IOC
  • REC 
  • Tide Water Oil 
  • Coal India
  • Indus Towers 
  • Power Finance Corporation Limited

Which businesses are the most stable?

  • Bharat Petroleum Corporation Limited
  • Indian Oil Corporation Limited
  • Indus Towers Limited
  • Hindustan Petroleum Corporation Limited
  • Coal India Limited
  • SJVN Limited
  • REC Limited
  • Power Finance Corporation Limited, and 
  • Oil India Limited

Dividend-paying firms, by and large, are considered safe dividend stocks since they pay consistently, in most market conditions.

How can I select a dividend investment that pays a fair yield?

By checking websites that contain details of businesses offering good and steady returns.

How much is the eventual dividend?

It is published by the Board of Directors after posting its confidence in the company’s financial health and paid after the fiscal year has ended. Though not a formal resolution, once stated, a company does not go back.

Do mutual funds also pay dividends?

This depends on the stocks that the mutual fund is investing in. If the stocks that pay dividends are part of the fund, then the investor makes gains through mutual funds.

Is it mandatory for a company to pay dividends on shares?

No, it is not mandatory. It is a choice made by the company and its board to pay dividends as a sign of confidence to its investors.

Time to switch to Fi. Smart banking and only that.
Related Posts
Get the Fi app