10 Best Highest Dividend Paying Stocks in India 2022

You have money to invest in dividend paying stocks, but you are not sure on which stocks to invest in, Don’t worry!! here in this article, we will guide you to pick the highest dividend paying stocks in India, these stocks are evaluated based on their fundamentals and financials by our in-house experts.

Before we leap into the highest dividend paying stocks, let’s know what is a dividend? So, a dividend refers to a monetary amount that a company pays to its eligible shareholders in order to reward them and return a part of their capital. It is a distribution that a company makes out of the profits it earns. The amount of dividend is decided by the board of directors of the company.

However, it is more important to judge stocks based on their dividend yields rather than the absolute dividend amount. Simply put, the dividend yield is calculated by the annual dividend per share divided by the company’s current share price.

The companies with strong fundamentals will have more dividend yields, you can check this article, which talks about the fundamental analysis on high dividend stocks and this article will help you to decide to pick the best dividend stocks.

Latest Story: Best chemical stocks in India

For instance, if a company’s share price trades at ₹100 and it pays an annual dividend of ₹5/share, its dividend yield turns out to be 5% (5/100). Hence dividend yield is the proper metric to judge dividend-paying stocks as it tells us about the return that we can earn on our investments solely from dividends. Capital appreciation in the company’s stock can further add to our returns.

Recent Dividend Stock Updates

Top Dividend stocks giving dividend this week August 2022 - HCL Tech, Federal Bank, Tech Mahindra, Dabur and Hindustan Zinc.

HCL Tech will be distributing the dividends on August 2, 2022 with Rs.10 dividend per share.

Federal Bank will be distributing the dividends on August 1st week of Rs. 1.8 dividend per share.

Tech Mahindra will be distributing divdidend of Rs.30 per share. 

Dabur will be distributing divdidend of Rs.2.7 per share. 

Hindustan Zinc will be distributing divdidend of Rs.21.3 per share. 

Happiest Minds Technologies Ltd has announced an equity dividend, Record Date is June 24, 2022, final dividend amount is ₹2/- per equity share. The dividend amount will be paid off after July 4, 2022.
SL No.Company NamePE RatioDividend Yield
1Coal India Limited7.5410.34%
2Indian Oil Corporation Limited4.9110.36%
3Rural Electrification Corporation Limited3.199.39%
4Power Finance Corporation Limited2.768.14%
5Hindustan Petroleum Corporation Limited3.957.84%
6PTC India Limited7.286.79%
7NMDC Limited6.325.74%
8Majestic Auto Limited6.985.61%
9HUDCO Limited5.045.48%
10Geekay Wires Limited12.905.26%

Advantages of owning high dividend-yield stocks

The following are the advantages of owning high dividend-yield stocks in the portfolio:

  • When the stock markets remain in a sideways range, dividend income can provide some relief to its shareholders.
  • Investors in their old age can get paid in the form of regular income from dividends.
  • High dividend yield stocks can help investors create a passive source of income.
  • Companies that pay a certain percentage of profits as dividends at regular intervals provide a signal that it is generating sustainable cash flows.
  • Another advantage of owning high dividend yield stocks relates to the time value of money. A rupee of dividend received today is more valuable than a rupee of dividend received one year from now.

Also Check

10 Highest Dividend-Paying Stocks in India

The following is the list of the 10 highest dividend-paying stocks in India:

1. Coal India Limited

Coal India Limited
Coal India Limited

Coal India Ltd is mainly engaged in mining and production of coal and also operates coal washeries. The major consumers of the company are the power and steel sectors. Consumers from other sectors include cement, fertilizers, brick kilns, etc.

 The company’s dividend yield at its current market price is 10.30%.

PE Ratio7.54
PB Ratio2.59
Dividend Yield10.30%
Market Cap94,290 Cr
Coal India Key Metrics

CE and PE in stock market

2. Indian Oil Corporation Limited

Indian Oil Corporation Limited
Indian Oil Corporation Limited

Indian Oil Corporation Ltd is a Maharatna Company controlled by GOI that has business interests straddling the entire hydrocarbon value chain – from refining, pipeline transportation, and marketing of petroleum products to R&D, exploration & production, marketing of natural gas, and petrochemicals. It has a leadership position in the oil refining & petroleum marketing sector of India.

The company’s dividend yield at its current market price is 10.36%.

PE Ratio4.91
PB Ratio0.94
Dividend Yield10.36%
Market Cap107,368 Cr
Indian Oil Key Metrics

3. Rural Electrification Corporation Limited

Rural Electrification Corporation Limited
Rural Electrification Corporation Limited

Rural Electrification Corporation is engaged in extending financial assistance across the power sector value chain and is a systematically important Non-Banking Finance Company registered with the Reserve Bank of India (RBI) as an Infrastructure Finance Company (IFC).

The company’s dividend yield at its current market price is 9.39%.

PE Ratio3.19
PB Ratio0.61
Dividend Yield9.39%
Market Cap26,898 Cr
Rural Electrification Corporation Limited Key Metrics

Also Read

Best Dividend Paying Stocks under ₹100

4. Power Finance Corporation Limited

Power Finance Corporation Limited
Power Finance Corporation Limited

Power Finance Corporation Limited is a Government of India undertaking and is engaged in the business of extending financial assistance to the power sector and is a systemically important non-deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) as an Infrastructure Finance Company (IFC).

The company’s dividend yield at its current market price is 8.14%.

PE Ratio2.76
PB Ratio0.40
Dividend Yield8.14%
Market Cap32,565 Cr
Power Finance Corporation Limited Key Metrics

5. Hindustan Petroleum Corporation Limited

Hindustan Petroleum Corporation Limited
Hindustan Petroleum Corporation Limited

Hindustan Petroleum Corporation Limited is engaged in the business of refining crude oil and marketing petroleum products, production of hydrocarbons as well as providing services for the management of engineering and procurement blocks. The company has about 16,500 retail outlets.

The company’s dividend yield at its current market price is 7.84%.

PE Ratio3.95
PB Ratio1.11
Dividend Yield7.84%
Market Cap42,258 Cr
Hindustan Petroleum Corporation Limited Key Metrics

6. PTC India Limited

PTC India Limited
PTC India Limited

PTC India is engaged in the trading of power.

The company’s dividend yield at its current market price is 6.79%.

PE Ratio7.28
PB Ratio0.63
Dividend Yield6.79%
Market Cap3,267 Cr
PTC India Limited Key Metrics

7. NMDC Limited

NMDC Limited
NMDC Limited

National Mineral Development Corporation (NMDC) is engaged in the exploration and production of Iron Ore along with Diamond, production, and sale of Sponge Iron, and generation and sale of Wind Power.

The company was established in the year 1958 as a government-owned company under the control of the Ministry of Steel and is one of the most profitable Navratna companies. The company accounts for 18% of the total domestic production of iron ore.

The company’s dividend yield at its current market price is 5.74%.

PE Ratio6.32
PB Ratio1.33
Dividend Yield5.74%
Market Cap39,651 Cr
NMDC Limited Key Metrics

8. Majestic Auto Limited

Majestic Auto Limited
Majestic Auto Limited

Majestic Auto Limited ventured into commercial real estate in 2015 by providing office space on lease and facility management services.

The company’s dividend yield at its current market price is 5.61%.

PE Ratio6.98
PB Ratio0.32
Dividend Yield5.61%
Market Cap139 Cr
Majestic Auto Limited Key Metrics

9. HUDCO Limited

HUDCO Limited
HUDCO Limited

Housing & Urban Development Corporation is primarily engaged in the business of financing housing and urban development activities in the country.

The company’s dividend yield at its current market price is 5.48%.

PE Ratio5.04
PB Ratio0.60
Dividend Yield5.48%
Market Cap7,957 Cr
HUDCO Limited Key Metrics

10. Geekay Wires Limited

Geekay Wires Limited
Geekay Wires Limited

Geekay Wires is engaged in the manufacturing niche of quality galvanized steel wires and nails which find applications in power transmission, cable & conductor, general engineering, construction, etc.

The company’s dividend yield at its current market price is 5.26%.

PE Ratio12.90
PB Ratio1.81
Dividend Yield5.26%
Market Cap81 Cr
Geekay Wires Limited Key Metrics

Conclusion

Listed above are some of the highest dividend-yielding stocks in India. By now, you might have understood that a 5% dividend yield means that you can recover 5% of your invested capital solely by receiving dividends from the company. So investors can consider these stocks if they want to receive a high dividend income.

If you want to invest in these dividend paying stocks, you need to open a Demat account from the best trading app in India.

Which stock pays dividends monthly?

These are some stocks that pay monthly dividends – LTC Properties, Pembina Pipeline, Realty Income, SL Green

Do all stocks pay dividends?

Not all stocks pay dividends to their shareholders, companies share their profits with shareholders in the form of dividends, these dividends are provided only by those companies which are running in profits.

Does the company stop paying dividends?

Yes, of course, this is normal because, sometimes due to some bad scenario companies might face a lot of financial issues, and if the company is going under the loss stage, then the company will stop paying dividends.

Photo of author

Vineet Nandwani

I am from a commerce background. Having completed my Bachelors of Business Administration (BBA) in 2020, I went on to pursue the Chartered Financial Analyst (CFA) course, which is a professional course in finance. The course has 3 levels, and I have appeared for my level 2 exam. Besides, I have also worked at a Wealth Management Firm in Surat, Gujarat for 2 years. I am also investing in stocks and mutual funds in my personal capacity for three years. I like to remain updated about the happenings in the financial world. Email: vineet.nandwani942@gmail.com

27 thoughts on “10 Best Highest Dividend Paying Stocks in India 2022”

  1. This article is really helpfull for me, Iam going to invest in these highest dividend paying stocks tomorrow once the market opens.

    Reply
  2. Is there any newsletter section where I can sign up for recent dividend stock updates so that i never miss out any dividend updates

    Reply
  3. Anil singvi also suggested to keep a portfolio of dividend stocks it will defineetly help in longer term of investment, Guys whoever is reading my comment, please keep your portfolio open for these type of digajj stocks, since these will help you in longer run

    Reply
  4. These are the best stocks I have seen, thanks for keeping me updated in the latest update section. Its helping me to take action on ex dividend date and close the stocks before record date

    Reply
  5. Currently the market is getting stumbled because of inflation, please tell me is it a right time to invest in dividend stocks

    Reply
    • If you are a long term investor, you need not worry about the right time to invest, but yes if you are short time investor just look at the trend in the market and also follow financial news portals like moneycontrol, businessstandard etc.

      Reply
  6. Thanks for the updates which you give at the top, it really helped me in advance to invest in stocks and grab the dividends.

    Reply
  7. How can i know the latest ex date of dividend stocks in India, so that i can be ready and get passive amount of dividend?

    Reply
  8. Here you have not only showing highest dividend stocks but also recent updates on the stocks which announced the dividends. Really grateful I’m here

    Reply
  9. I have been investing in coal India since very long time i get good amount of dividend yield every quarter, its really a good decision to invest in dividend stocks.

    Reply
  10. Amazing list is this, i really like the way you represented every metrics, like company fundamentals, dividend yields, market cap and PE Ratio, these metrics really helps in deciding which stocks are better for dividends

    Reply
  11. I always wanted to know which is highest dividend paying stocks, today i found all the list, definitely these stocks will be in my portfolio

    Reply
  12. I like coal India, since it has good amount of dividend yield, which can build a passive income every quarter, when they announce the dividends.

    Reply

Leave a Comment

FREE Investment and Trading Tips