Highest Dividend Paying Stocks In India For 2025

Investors can generate profits by investing in stocks in two ways. First, there is the obvious way – you buy a share at Rs 100 and when the share price increases to Rs 120, you make a profit. In this article, we will discuss the second way – through dividends. By investing in dividend stocks, you can earn regular payouts in addition to potential capital appreciation. When you opt for portfolio advisory services and your requirement is capital protection and regular income from your equity investment, you can invest in highest dividend paying stocks.

So, let’s understand what this means, and then we will provide you with the names of highest dividend paying stocks .

What is dividend yield?

Dividend Yield tells you how much money you are earning from dividends as a percentage of the current share price. You can think of it like interest on your investment, but instead of a fixed return like a bank fixed deposit, it is based on the company’s dividend and share price. The formula for dividend yield is simple:

• Dividend Yield = (Annual Dividend per Share/ Current Market Price Per Share) * 100

Let’s say you’re looking at shares of a company called “ABC Ltd.” The company paid a dividend of Rs 20 per share this year, and the current share price is Rs 400. Let us apply the above formula:

• Dividend yield = (20 / 400) * 100 = 5%

What does dividend yield signify? A high yield can indicate an attractive income, but also be wary of companies paying unsustainably high dividends. By focusing on consistent and financially stable companies, you can identify reliable high-yield picks.

Highest Dividend Paying Stocks in India

We have filtered the top companies (including InvIT) with the highest dividend yield. However, we have not included all companies; we have only selected those with a reasonable market size. Therefore, our list only includes companies with a market capitalization of Rs 2500 crore and above. In our table, you can also see the Current Market Price (as of July 9, 2025) and the P/E ratio.

Let’s also examine the high-level details of few 15 best dividend yield companies, so you can decide which ones you’d like to explore further:

Altius Telecom: A lesser-known telecom infrastructure provider offering an exceptionally high dividend yield, often due to niche contracts and a low market cap. Investors should watch for sustainability.

Shrem InvIT: This Infrastructure Investment Trust (InvIT) focuses on road assets and offers steady payouts backed by long-term annuity revenues from NHAI-backed projects.

IndiGrid Trust : India’s first power transmission InvIT, providing reliable cash flows and high dividend yield from regulated assets across India’s grid.

Power Grid Infrastructure Investment Trust (PGInvIT) : Sponsored by Power Grid Corporation, this InvIT offers stable dividends through transmission assets leased to Power Grid under long-term contracts.

IRB InvIT Fund: India’s first publicly listed InvIT in the road sector. It distributes regular income to unitholders via toll revenues from highways.

Vedanta: A diversified natural resources conglomerate known for high dividend payouts, though investors should track its debt levels and cyclicality.

Indus Towers: India’s leading tower infrastructure provider, generating consistent cash flow from long-term telecom leases, enabling high dividend yield.

Indian Oil Corporation (IOCL): A PSU oil refining giant offering a strong dividend yield backed by robust profits, although sensitive to government fuel price policies.

National Highways Infra Trust (NHIT): An InvIT backed by NHAI, investing in operational toll roads—known for offering stable, government-backed dividend returns.

MSTC Ltd: A government-run e-auction and trading platform company. It offers a high dividend yield, but earnings can be volatile due to its project-based business.

Chennai Petroleum Corporation Ltd (CPCL): A refining PSU under IOCL, offering generous dividends, especially during high refining margin cycles. Investors should watch sector volatility.

Mindspace Business Parks REIT: One of India’s largest listed REITs, with premium office assets in metro cities. Offers stable, tax-efficient dividends from leasing income.

Sustainable Energy Infra Trust (SEIT): A newer InvIT structure in renewable energy, aiming to offer consistent payouts from solar and wind energy assets. High yield, but the track record is still being built.

Hindustan Zinc: A cash-rich mining company (Vedanta group) known for massive dividend payouts, often among the top yielders in India.

Coal India Ltd: India’s largest coal producer and a consistently high-dividend-paying PSU—favored for stable earnings and strong government backing.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before investing.

Things To Consider Before Investing in High Dividend Stocks

Here are a few things to consider:

Number 1: Check the Dividend Yield Source – Is it Real or a Trap?

If the dividend yield is too high (like 15–25%), ask yourself:

• Is it high because the company gives big dividends?
• Or is it high because the stock price has fallen badly?

If a stock was Rs 500 and gave a Rs 50 dividend, it would have = 10% yield. Now, if the stock falls to Rs 250, the yield becomes 20% — but maybe the business is in trouble!

Number 2: Sustainability of Dividend

A good dividend is one that the company can safely pay every year, not just once. For example, Coal India pays strong dividends backed by cash from mining operations. That’s safer than a loss-making company paying a dividend from borrowed money.

Number 3: Debt Levels

Companies with high debt often use dividends to attract investors; however, this can be a risky strategy. If a company is taking loans and still paying dividends, it might run into trouble. For example, check Vedanta – very high dividends, but also high debt.

Conclusion

The dividend yield is a great way to compare stocks for income generation, especially if you’re a conservative investor, retired, or simply looking for regular passive income from your shares. If you are looking for a equity advisory company to create your equity portfolio, you can explore Jarvis Invest – an AI-based platform that helps you create a portfolio based on your risk profile, goals, and investment horizon.

Frequently Asked Questions

Q1. What is a dividend stock?

Ans. A dividend stock is a share of a company that regularly pays a portion of its profits to shareholders in the form of dividends. These are often well-established companies with stable earnings.

Q2. Are dividends taxable?

Ans. Yes. In India, dividends received from stocks are added to your total income and taxed as per your income tax slab. Companies deduct TDS (Tax Deducted at Source) if the dividend exceeds ₹5,000 in a financial year.

Q3. What is a dividend in the share market?

Ans. A dividend is a payout made by a company to its shareholders, typically from its profits. It is usually declared on a per-share basis and can be paid quarterly, annually, or as a one-time special dividend.

Q4. How to calculate dividends?

Ans. Dividends are calculated using the formula:
Dividend = Dividend per share × Number of shares you own
For example, if a company declares ₹10 dividend per share and you own 100 shares, you’ll receive ₹1,000.

Q5. Does every stock pay dividends?

Ans. No. Not all companies pay dividends. Some prefer to reinvest profits into business growth. Typically, mature companies in sectors like FMCG, energy, or banking offer regular dividends, while startups and growth companies may not.