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. 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.
| S. No | Name | Sub-Sector | CMP | Div Yield (%) | P/E | Mar Cap (cr) | |
| 1 | Aster DM Healthcare Ltd | Healthcare / Hospitals | 598.55 | 19.8 | 5.55 | 29820.07 | |
| 2 | Altius Telecom | Telecommunications / Internet Services | 149.45 | 18.79 | 54.22 | 45543.39 | |
| 3 | Shrem InvIT | Infrastructure Investment Trust | 107 | 18.15 | 5.89 | 6536.03 | |
| 4 | IndiGrid Trust | Power Transmission | 154.87 | 13.53 | 37.45 | 12924.8 | |
| 5 | Powergrid Infra. | Power Transmission / Infrastructure | 90.75 | 13.23 | 7.04 | 8258.24 | |
| 6 | IRB InvIT Fund | Toll Road / Infrastructure | 61.79 | 12.93 | 10.63 | 3586.9 | |
| 7 | Vedanta | Diversified Metals & Mining | 452.95 | 9.68 | 12.78 | 177121.04 | |
| 8 | Indus Inf. Trust | Digital Infrastructure / Data Services / InvIT | 114 | 8.94 | 10.91 | 5049.5 | |
| 9 | IOCL | Oil & Gas – Refining & Marketing | 151.75 | 7.93 | 17.65 | 214289.8 | |
| 10 | National High | Infrastructure / Road Assets / InvIT | 132.45 | 7.64 | 78.93 | 25653.59 | |
| 11 | MSTC | Trading / E-commerce / Scrap Trading | 542.25 | 7.49 | 19.43 | 3817.43 | |
| 12 | CPCL | Oil & Gas – Refining | 742 | 7.42 | 51.59 | 11049.21 | |
| 13 | Mindspace Busine | Real Estate Investment Trust (Commercial) | 415.4 | 7.27 | 52.95 | 25305.48 | |
| 14 | Coal India Ltd | Mining – Coal | 386.45 | 6.86 | 6.74 | 238158 | |
| 15 | Sustainable Energies | Renewable Energy / Infrastructure | 108 | 6.67 | 25.19 | 3499.2 | |
| 16 | Hindustan Zinc | Metals – Zinc & Lead Mining | 435 | 6.66 | 17.8 | 183801.37 | |
| 17 | Castrol India Ltd | Commodity Chemicals | 225.55 | 5.76 | 24.06 | 22309.66 | |
| 18 | Gujarat Pipavav Port Ltd | Ports | 159.27 | 5.15 | 19.4 | 7699.75 | |
| 19 | Oil and Natural Gas Corporation Ltd | Oil & Gas – Exploration & Production | 243.67 | 5.03 | 8.46 | 306543.66 | |
| 20 | Indraprastha Gas Ltd | Gas Distribution | 220.27 | 4.99 | 17.95 | 30837.84 | |
| 21 | NMDC Ltd | Mining – Iron Ore | 67.98 | 4.85 | 9.14 | 59766.78 | |
| 22 | REC Limited | Specialized Finance | 401.35 | 4.48 | 6.65 | 105684.45 | |
| 23 | National Aluminium Co Ltd | Metals – Aluminium | 190.48 | 4.2 | 6.64 | 34984.16 | |
| 24 | Gail (India) Ltd | Gas Distribution | 184.71 | 4.06 | 9.76 | 121448.3 | |
| 25 | Tata Consultancy Services Ltd | IT Services & Consulting | 3,252.30 | 3.87 | 24.24 | 1176710.6 | |
| 26 | HCL Technologies Ltd | IT Services & Consulting | 1,566.40 | 3.84 | 24.4 | 424323.82 | |
| 27 | Power Finance Corporation Ltd | Specialized Finance | 425.1 | 3.72 | 6.1 | 140287.33 | |
| 28 | Bank of India Ltd | Public Banks | 115.79 | 3.5 | 5.52 | 52715.34 | |
| 29 | Canara Bank Ltd | Public Banks | 114.87 | 3.48 | 5.94 | 104194.57 | |
| 30 | Bank of Baroda Ltd | Public Banks | 244.32 | 3.43 | 6.1 | 126346.72 | |
| 31 | ITC Ltd | FMCG – Tobacco | 422.1 | 3.4 | 15.21 | 528557.07 | |
| 32 | UTI Asset Management Company Ltd | Asset Management | 1,436.80 | 3.34 | 25.16 | 18401.65 | |
| 33 | Union Bank of India Ltd | Public Banks | 146.23 | 3.25 | 6.19 | 111626.21 | |
| 34 | Petronet LNG Ltd | Oil & Gas – Storage & Transportation | 312.4 | 3.2 | 11.8 | 46860 | |
| 35 | RITES Ltd | Business Support Services | 279.9 | 3.14 | 34.96 | 13452.1 | |
| 36 | Pfizer Ltd | Pharmaceuticals | 5,431.00 | 3.04 | 32.37 | 24845.59 | |
| 37 | Power Grid Corporation of India Ltd | Power Transmission & Distribution | 298.05 | 3.02 | 17.86 | 277204.5 | |
| 38 | Oracle Financial Services Software Ltd | Software Services | 8,775.00 | 3.02 | 32.05 | 76255.4 | |
| 39 | shipping corporation of India Ltd | Logistics | 219.24 | 3.01 | 12.11 | 10212.18 | |
| 40 | Great Eastern Shipping Company Ltd | Oil & Gas – Storage & Transportation | 988.2 | 3.01 | 6.02 | 14108.25 |
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 stock 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.