10 High Dividend Stocks in India

When it comes to building long-term wealth, most investors in India tend to focus on high-growth stocks. But there’s another smart strategy – investing in companies that consistently share their profits through dividends. These stocks not only offer steady returns but also reflect the financial strength and transparency of the companies.

In this blog, we explore 10 such companies that are recognised as the Top Dividend-Paying Companies in India and have rewarded their loyal investors over time. If you’re someone who believes in long-term investing and loves a regular stream of income, this blog is for you.

1. Vedanta Ltd.

Vedanta (BSE:VEDL) tops the list when we talk about the Top dividend paying company in India. The company operates in the metals and mining sector and has a long history of generous dividend payouts. In FY23 Vedanta paid a dividend of almost ₹101 per share, in FY 24 it paid ₹81 per share and in FY25 it paid ₹43.50 per share. This kind of consistency makes it a favourite among passive income-seeking investors. Its dividend policy makes Vedanta a true dividend aristocrat.

  • Sector: Natural Resources
  • Dividend Yield: Over 12% (FY25)
  • Reason to invest: Strong fundamentals, Future focused portfolio of critical minerals and transition metals

2. Coal India Ltd.

Coal India is a public sector giant and among the Best Dividend Paying Company in India. It holds a monopoly in coal mining in India, ensuring a stable revenue stream. Its dividend payout ratio is high, and the stock is often chosen by conservative investors looking for safe returns.

  • Sector: Mining
  • Dividend Yield: Around 6.5–7%
  • Reason to invest: Government backing, regular payouts

3. Indian Oil Corporation Ltd. (IOCL)

One of the largest oil companies in India, IOCL, is another Top dividend paying company in India. Despite fluctuations in oil prices, the company maintains healthy cash reserves and pays out attractive dividends year after year.

  • Sector: Oil & Gas
  • Dividend Yield: Around 8%
  • Reason to invest: Government PSU, large-scale operations

4. Bharat Petroleum Corporation Ltd. (BPCL)

BPCL is yet another oil major that makes it to our list. It has been consistent in rewarding its shareholders through dividends. Known for its robust operations and financial health, BPCL is considered a Best Shareholder Return Company in India.

  • Sector: Oil & Gas
  • Dividend Yield: Over 7%
  • Reason to invest: Stable demand, regular dividends

5. Oil and Natural Gas Corporation (ONGC)

ONGC is India’s biggest oil exploration company. With consistent revenue from domestic and international oil fields, the company offers good dividends to its shareholders.

  • Sector: Energy
  • Dividend Yield: Around 5–6%
  • Reason to invest: Long-standing PSU, cash-rich

6. Hindustan Zinc Ltd.

Hindustan Zinc, a part of the Vedanta Group, also features as a Top Dividend Paying Company in India. It has a high dividend payout ratio and consistent profitability. It is the largest integrated zinc producer in the world and among the top 5 global silver producers.

  • Sector: Mining and Minerals
  • Dividend Yield: Close to 7%
  • Reason to invest: Only silver producer in India, Govt backed

7. Power Finance Corporation Ltd. (PFC)

A top name in the financial sector, PFC is known for its solid dividend record. It funds power projects across India and is financially sound.

  • Sector: Financial Services
  • Dividend Yield: Over 4%
  • Reason to invest: Reliable dividend income

8. Rural Electrification Corporation Ltd. (REC)

REC works hand-in-hand with PFC and enjoys a strong reputation as a Best Shareholder Return Company in India. Its dividends are stable and attractive.

  • Sector: Financial Services
  • Dividend Yield: Around 5%
  • Reason to invest: Consistent returns, public sector trust

9. Hindustan Petroleum Corporation Ltd. (HPCL)

HPCL, another oil sector PSU, is known for steady dividend payouts and is a reliable bet for long-term investors.

  • Sector: Oil & Gas
  • Dividend Yield: Over 5%
  • Reason to invest: Regular payouts, consistent earnings

10. Great Eastern Shipping Company Ltd.

Last but not least, this private shipping company has proven itself with strong returns and dependable dividend distribution.

  • Sector: Shipping
  • Dividend Yield: Around 4.5%
  • Reason to invest: Strong management, solid track record

Why Choose Dividend Stocks?

Investing in dividend-paying stocks is more than just receiving payouts. It’s about putting your money in companies that value their shareholders. Many of these firms have a solid balance sheet, steady profits, and are less volatile during market downturns.

  • Passive Income: Regular dividends create an income stream.
  • Compounding Growth: Reinvested dividends help in wealth creation.
  • Lower Risk: Dividend-paying companies are usually mature and stable.

If you’re searching for the Best dividend-paying company in India or the Best Shareholder Return Company in India, these 10 stocks are excellent starting points.

Latest Dividend Trends & Market Insights (May 2025)

As of May 2025, India’s dividend landscape continues to offer attractive opportunities for long-term investors. Here’s a snapshot of the current top dividend-paying companies:

Top Dividend Paying Companies in India (2025)

Company

 Sector Dividend Yield (%) Market Cap (₹ Cr)
Vedanta Ltd. Metals – Diversified 11.16

159,297.37

Coal India Ltd.

 Mining – Coal 6.93 235,662.73
Indian Oil Corporation Ltd. (IOC) Oil & Gas – Refining & Marketing 8.46

197,683.22

Bharat Petroleum Corporation Ltd. (BPCL)

 Oil & Gas – Refining & Marketing 7.08 126,804.95
Oil and Natural Gas Corporation Ltd. (ONGC) Oil & Gas – Exploration & Production 5.12

295,586.24

Hindustan Zinc Ltd.

 Metals – Zinc 7.00 200,322.37
Power Finance Corporation Ltd. (PFC) Financial Services 4.00

82,187.14

Rural Electrification Corporation Ltd. (REC)

 Financial Services 5.00 45,394.65
Hindustan Petroleum Corporation Ltd. (HPCL) Oil & Gas – Refining & Marketing 5.09

87,930.77

Great Eastern Shipping Company Ltd.

 Shipping 4.51

13,855.17

 Sectoral Insights

  • Energy & Resources: Companies like Vedanta Ltd. and Coal India Ltd. continue to lead with high dividend yields, reflecting strong cash flows and commitment to shareholder returns.
  • Oil & Gas: IOC and BPCL maintain robust dividend payouts, benefiting from stable demand and government support in the energy sector.
  • Financial Services: PFC and REC offer consistent dividends, supported by their roles in financing infrastructure and power projects.

Investment Takeaway

Investing in these top dividend-paying companies can provide:

  • Steady Income: Regular dividend payouts offer a reliable income stream.
  • Financial Stability: High dividend yields often indicate strong financial health and profitability.
  • Long-Term Growth: Reinvested dividends can compound returns over time, enhancing wealth accumulation.

For investors seeking the Best Dividend Paying Company in India or aiming for the Best Shareholder Return Company in India, these companies represent solid choices in the current market landscape.