Highest dividend paying stocks in india 2025
Dividends for instance are viewed as a sure bet by investors who want predictable figures with which to measure their investment returns in the future. Dividends are those payments companies make at certain intervals of time in equal amounts out of their profits and are a way of distributing prosperity among shareholders. India has some high dividends paying shares that investors both retail and institutional can invest in. Below are the most valuable dividend-paying stocks in India as of 2024 based on most researched criteria.
In this Blog let us discuss and find out top dividend paying stocks in India .
Highest dividend paying stocks in india 2025
Taparia Tools Ltd
Jagran Prakashan Ltd
Coal India Ltd
Abirami Financial Services India Ltd
VST Industries Ltd
Standard Industries Ltd
Ujjivan Small Finance Bank Limited
Ador Fontech Ltd
Ruchira Papers Ltd
Mawana Sugars Ltd
What Are Dividend Stocks and Why Are They Important ?
Dividend stocks refer to the equities of firms that pay out part of their profit to shareholders in form of dividends. These cases are most often with firms with established, stable earnings, and significant market shares. High dividend yield stocks are particularly attractive because they provide:
Regular Income: Especially good for elderly people or for those who can just sit and receive some money without any effort.
Reduced Risk: Dividend payouts can reduce the risk on investment especially during unfavorable climate in the market.
Compounding Benefits: It shows how the returns on investments can be ploughed back to create the eventual pool of wealth.
The list of top Highest dividend paying stocks in india
Here are the top dividend paying stocks in India .
1. Taparia Tools Ltd
Dividend Yield: 30.07%
Market Capitalization: ₹479.04 crore
P/E Ratio: 0.11
Current Market Price (CMP): ₹8.35
Taparia Tools Ltd. excels this list with a 30.07% dividend yield. This company is famous for producing hand tools and fasteners. The current market capitalization of Taparia Tools is low, and the current price per share is also low, but the stock can give very good high yield because the company is always concerned with the interest of the shareholders. It is the Highest dividend paying stocks in India .
2. Jagran Prakashan Ltd
Dividend Yield: 5.86%
Market Capitalization: ₹1,852.83 crore
P/E Ratio: 11.43
CMP: ₹85.38
It owns and runs the biggest selling Hindi daily newspaper named Dainik Jagran apart from a portfolio of other products and services in the media and entertainment sector. Jagran Prakashan Ltd is one of the highest dividend paying stocks in India . Radio being a new business venture, digital media and the events business have supported the good financial performance and the company is paying dividends.
3. Coal India Ltd
Dividend Yield: 5.53%
Market Capitalization: ₹2,84,193.2 crore
P/E Ratio: 7.78
CMP: ₹461.10
Since the time it came into existence Coal India Ltd has been one amongst the largest coal producing companies in the world and has been the backbone supporting India’s energy system. As in any other company, this company has also paid dividends and their frequency indicates good total revenues and profits. It has a very satisfactory yield which makes it popular with most long only investors in the equity markets.
4. Abirami Financial Services India Ltd
Dividend Yield: 5.16%
Market Capitalization: ₹26.15 crore
P/E Ratio: 17.44
CMP: ₹48.44
Still, it has the capacity to provide decent dividend yield although it has only a small market capitalization. The company operates mainly in the financial sector carrying out investment and lending services which sets it as a specialized dividend investor’s company.
5. VST Industries Ltd
Dividend Yield: 4.39%
Market Capitalization: ₹5,274.43 crore
P/E Ratio: 21.7
CMP: ₹310.65
As for the cigarette and tobacco product manufacturer VST Industries it has shown a stable and rather high and dividend remuneration history. Because of those factors, it is
6. Standard Industries Ltd
Dividend Yield: 4.26%
Market Capitalization: ₹160.44 crore
P/E Ratio: 126.33
CMP: ₹24.64
Standard industries is involved in a number of sectors including the manufacturing and trading. Based on the current analysis it is evident that the company has been able to sustain high dividend yield but the current P/E ratio is a bit high; this is an indication that the company has shareholders’ value in mind.
7. Ujjivan Small Finance Bank Limited
Dividend Yield: 4.22%
Market Capitalization: ₹6,919.48 crore
P/E Ratio: 5.92
CMP: ₹35.77
Ujjivan Small Finance Bank has a mission of delivering banking and related financial services to excluded customer segments. Along with competitive dividend yield it offers a good connectivity service focusing on low and middle income people and thus should be included in any income portfolio.
8. Ador Fontech Ltd
Dividend Yield: 4.21%
Market Capitalization: ₹498.75 crore
P/E Ratio: 21.97
CMP: ₹142.50
Ador Fontech belongs to the industrial segment manufacturers products and services related to welding and cutting. The company’s rewards increase its base of reliable dividends and industrial developments remain ideal for income or growth investors.
9. Ruchira Papers Ltd
Dividend Yield: 4.19%
Market Capitalization: ₹356.46 crore
P/E Ratio: 8.44
CMP: ₹119.37
Ruchira Papers Limited is a company that deals in the manufacture of all sorts of paper products which are environmentally friendly. This company has sound practices especially in being environmentally friendly which makes it a good stock especially to those who seek dividend yields.
10. Mawana Sugars Ltd
Dividend Yield: 3.89%
Market Capitalization: ₹403.43 crore
P/E Ratio: 8.28
CMP: ₹102.83
Mawana Syrup & Chemical works Ltd is one of the leading production companies of the sugar production industry of India. The economic performance of the company has been stable despite the oscillation in the market price; it is also religious in the regular distribution of dividend.
Why should you invest in High dividend paying stocks ?
Dividend paying stocks are an important part of investing, and in fact the building block of any long-term sustainable investment plan. Here’s why they deserve a place in your portfolio:
Income Stability: They yield fixed income all the time with nominal consideration being given to market conditions.
Defensive Nature: Dividend paying stocks are therefore less likely to be highly volatile and are mostly associated with established organizations.
Tax Advantages: In India, any amount received from dividends is tax free up to ₹ 10,00,000 in the hands of investors and thus, they are considered to be a tax efficient source of income.
Compounding Power: Investing in these dividends also brings about strength to the portfolio hence can increase the overall growth of your portfolio.
Factors to consider before Investing in Highest dividend paying stocks in india
When selecting dividend stocks, it’s essential to evaluate the following factors:
Dividend Yield: Some companies will promise a higher yield, but check that this yield is achievable and not because the stock prices have come down.
Payout Ratio: This is the percentage of the profit that is occasioned to shareholders in the form of dividends. The optimal percentage lineup ranges from 30% and 60% for most firms.
Financial Health: From the Company’s ratio analysis, check on the company’s balance sheet and especially analyze its profitability and cash flow in an effort to determine its aptitude to sustain the envisaged dividend paying policy.
Industry Trends: Think of how the industry trends may affect future earnings and thus dividend in the company.
Growth Potential: Choose those companies, which have the potential for increasing both their earnings and the possibility of paying out their dividends.
Conclusion
However, looking at the High Dividend yield stocks in India, investors can expect better and solid returns as an investment option for creating long term wealth. BOC, Tata Tea, SBI and Maruti Uthy are the dominant yields among the sample companies although the leading yield is recorded by Taparia Tools, Coal India and Jagran Prakashan with strong passion for shareholder value. Nonetheless, it is required to carry out a comprehensive analysis and choose the investment opportunities, concerning your objectives and tolerance to risk.
Dividend yield is not just a number that should be inflated but also the real and reasonable income from the companies that pay those handsome yields. When you make the choices carefully, you will be in a position to develop a good portfolio with good income and capital appreciation.
FAQ'S
What are the highest dividend paying stocks in India 2024 - 2025 ?
These are stocks that offer the highest dividend yields, ensuring steady income for investors. Companies in sectors like IT, energy, and finance often lead the list.
How are top dividend paying stocks determined ?
They are identified based on their dividend yield, payout ratio, and track record of consistent dividends over the years.
Which sectors typically have high dividend paying stocks in India ?
Sectors like utilities, FMCG, banking, and oil and gas are known for offering high-dividend stocks due to their stable cash flows.
How do I find the highest dividend paying stocks in India ?
Research using tools like stock screening platforms or consult financial reports. Look for companies with high dividend yields, consistent payouts, and strong fundamentals.
