The below table shows the highest dividend paying stocks in India, arranged according to market capitalization.
|Stock Name||Sector||Market Cap (₹ Crores)||Closing Price (₹)|
|Nestle India Ltd||FMCG – Foods||1,92,744.66||19,925.10|
|Page Industries Ltd||Apparel & Accessories||51,203.14||46,139.45|
|Bosch Ltd||Auto Parts||49,264.11||16,535.60|
|Abbott India Ltd||Pharmaceuticals||41,423.28||19,741.25|
|Oracle Financial Services Software Ltd||Software Services||26,664.16||3,075.10|
|Sanofi India Ltd||Pharmaceuticals||12,738.58||5,544.00|
|Hinduja Global Solutions Ltd||Outsourced services||5,459.07||1,275.55|
|INEOS Styrolution India Ltd||Commodity Chemicals||1,383.99||794.05|
|Yamuna Syndicate Ltd||Commodities Trading||376.92||12,596.90|
|Taparia Tools Ltd||Industrial Machinery||3.69||12.14|
Before finding out the highest dividend-paying stocks in India, You need to ask yourself a question, why do we invest money? We invest money to make more money in return, as simple as that.
You may ask, how can we do that? I say, with extensive market research and proper knowledge about the stocks.
See, earning a good return on investment depends on many factors. But, investing in dividend-paying stocks is undoubtedly an intelligent decision to make.
How? Keep reading, and you’ll find out the answer to it.
- What is Dividend?
- What is Dividend Yield?
- What is a Record Date?
- What is Ex-Date?
- Best Dividend Paying Stocks List
- Top Dividend Paying Stocks
- FAQ(Frequently Asked Questions)
What is Dividend?
A dividend is a reward that is paid to the shareholders by a publicly listed company. Dividends can be in the form of cash, shares, cash equivalents, etc., and they are usually issued from the company’s net profit or reserved cash.
What is Dividend Yield?
Dividend Yield is the ratio between the annual dividend per share and the current share price of the stock, calculated in percentage. This will help you to understand how much a company pays out in dividends on a percentage basis.
Dividend Yield = Annual Dividend Per Share/Current Share Price x 100
Let’s understand it with an example, suppose Ramesh invests in a stock that is trading at Rs 200 per share, and the annual dividend paid is Rs 20 per share. Then the dividend yield for this particular stock will be 10% [Rs 20/Rs 200 X 100].
Selecting a high dividend-paying stock and investing in it won’t make you eligible for dividend payouts. Yes, there’s a catch. You need to check specific dates before investing in these stocks:
- Record Date
What is a Record Date?
The record date is the cut-off date set by the company to be eligible for bonus shares. All the shareholders who have the shares in their Demat Account on the record date will be entitled to receive Dividends from the company.
What is Ex-Date?
If you want to be eligible for the bonus share, you have to buy the shares at least one day before the ex-bonus date.
If we look at both dates, the basic idea is that you should buy the shares before Ex-Date and make sure that the shares are present in your Demat Account on the Record Date.
Click here to find out about the record date and ex-date of various stocks.
Best Dividend Paying Stocks List
After thorough analysis and data collection from various sources, we have made the following table with the top 13 highest dividend-paying stocks based on the dividend yield.
|Stock Name||Sector||Market Cap (₹ Crores)||Dividend Yield (%)||Dividend Per Share (₹)|
|Taparia Tools Ltd||Industrial Machinery||3.69||1,420.92||172.5|
|Elcid Investments Ltd||Investment Banking & Brokerage||0.05||649.35||15|
|Vardhman Acrylics Ltd||Textiles||411.06||48.88||25|
|INEOS Styrolution India Ltd||Commodity Chemicals||1,383.99||37.74||297|
|Southern Gas Ltd||Gas Distribution||0.37||30.75||50|
|M Lakhamsi Industries Ltd||Business Support Services||0.17||25.44||0.5|
|Swastik Safe Deposit and Investments Ltd||Diversified Financials||0.12||19.69||1|
|Hinduja Global Solutions Ltd||Outsourced services||5,459.07||16.84||220|
|Vedanta Ltd||Metals – Diversified||1,13,977.08||14.69||45|
|IRB InvIT Fund||Roads||3,712.30||14.07||9|
Looking for the best stocks in other fundamental factors? Find them in the articles below:
Top Dividend Paying Stocks
In order to invest in the highest dividend-paying stocks, check out brief information about each company.
Taparia Tools Ltd
Taparia Tools Ltd. is a company that has been in business since 1969 and is engaged in the production and trading of hand tools.
Elcid Investments Ltd
Elcid Investments Limited is a Reserve Bank of India-registered Non-Banking Finance Company. The company is a Non-Banking Finance company that invests in stocks, debentures, mutual funds, and so on. It is one of the high dividend yield stocks.
Vardhman Acrylics Ltd
Vardhman Acrylics Ltd is India’s largest producer and supplier of Acrylic Fibre and Tow.
The majority of the company’s products are acrylonitrile-based fiber and tow. Its products are offered under the ‘VARLAN’ brand.
Its goods are utilized in the production of clothing, sweaters, t-shirts, carpets, woven blankets, rug bed sheets, draperies, stockings, and other household items.
INEOS Styrolution India Ltd
INEOS Styrolution India Limited, which used to be called Styrolution ABS (India) Limited, makes plastics. They are among the best dividend-paying stocks in India.
Southern Gas Ltd
Southern Gas is in the business of producing and supplying a wide variety of gases, including medical oxygen, industrial oxygen, argon, hydrogen, nitrogen, and other gases.
M Lakhamsi Industries Ltd
Specular Marketing & Financing was founded with the intention of conducting business in the areas of marketing, financing, and investments.
Swastik Safe Deposit and Investments Ltd
Swastik Safe Deposit & Investments Ltd is a non-depository credit intermediation service provider. The company was established in August 1940 and is headquartered in Mumbai, India.
Hinduja Global Solutions Ltd
Hinduja Global Solutions Limited is a company that manages business processes. The primary activity of the company is IT-enabled services (ITES) – business process outsourcing.
Vedanta Limited is a global diversified natural resource corporation with operations in copper, aluminum, iron ore, power, zinc, lead, silver, oil and gas, and others. They are among the top dividend-paying stocks in India.
IRB InvIT Fund
It is a private highway infrastructure developer in India, and IRB InvIT Fund is a trust that was founded by the company’s Sponsor and Project Manager. It is currently managing 7 operational road assets with an aggregate value of approximately Rs. 7250 Cr. spread across the states of Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu, and Punjab. The Weighted Average life of Assets under the InvIT Portfolio is approximately 16 years. The company was established to own, operate, and maintain a portfolio of toll road concessions.
IRB Infrastructure Pvt Ltd, which has 18 years of experience in administering a road BOT project, is serving as the Investment Manager of the Trust. In addition, IRB Infrastructure Pvt Ltd has experience in the development, operation, and maintenance of toll plazas.
Now that you know about the highest dividend-paying stocks, CLICK HERE TO OPEN A DEMAT ACCOUNT WITH ALICEBLUE IN JUST 15 MINUTES AND START INVESTING !!
Here are some of the Best Stock Research Articles listed based on Top Sectors (Industries), Market Cap, and Fundamental Analysis Factors:
- Mid Cap Stocks
- Top Pharma Companies in India
- Nifty 50 Companies
- Most Expensive Shares in India
- Shares Below 5
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time.
FAQ(Frequently Asked Questions)
1. What Blue Chip Stocks Pay The Highest Dividends?
As of July 2021, Nestle India is paying the highest dividend per share among the Blue Chip Stocks.
2. Should I Buy Dividend Stocks?
This is a subjective thing, it depends on the type of investor you are. Dividend Stocks are considered to be reliable stocks and are a steady income source for investors.
3. What Is A Good Dividend Yield?
Looking into the technical aspects, a good dividend yield is considered to be in between 2% to 6%. But there are certain companies that offer more than 900 to 1000% of dividend yield.
4. How Many Times Dividends Are Paid In A Year?
Normally, dividends are paid either quarterly or annually. It depends on the company you have invested in. Some companies even pay monthly dividends.
5. Are Monthly Dividends Better Than Quarterly?
Majority of the companies pay their dividends quarterly, but there are exceptional companies that pay monthly dividends as well. From investors’ point of view, you have a slightly upper hand in monthly dividends payouts.
6. Is A Dividend Taxable?
It depends on your total taxable income. If you fall in the lower tax bracket that are exempted to pay income tax then you may not pay. Anything higher than that bracket has to pay tax on dividends earned.