Introduction
The truth is passive income is desirable by everyone. And in the fluctuating markets of today, the constant availability of a cash flow in form of dividend paying stocks can be as comfortable as a mug of chai in the rain. Dividend stocks will give you some relief in case you are fed up with seeing your portfolio rise and fall like a yoyo.
Long-term investors will want to know which stocks will yield the highest dividend in India in 2025 not only in terms of percentage dividends, but also features such as market capitalization, price-to-earning ratio, and the strength of the business.
This is why high dividend yielding stocks are a favorite of investors
- Consistent Income: Dividends land in your pocket regardless of whether the stock prices remain stagnant. It is real money.
- Reduced Volatility: The high-dividend-paying companies are mostly established and are secure in terms of finance. [25]
- Peace of Mind: When there is uncertainty in times, the dividends offer the security of financial stability.
- Wealth Building: Reinvestment of dividends has the potential to grow your earnings exponentially in the long term.
High dividend stocks are ideal to attract the retired investor who wants an income and the young who wants to reinvest the cash, and everyone who wants to put together a strong, no-stress portfolio.
Best High Dividend Yield Stocks in India (2025)
| Company | Symbol | Price (₹) | P/E Ratio | Market Cap (₹ Cr) | Dividend Yield (%) |
|---|---|---|---|---|---|
| Hindustan Zinc | HINDZINC.NS | 434.6 | 17.71 | 183632.41 | 671 |
| Vedanta | VEDL.NS | 436.1 | 11.24 | 176064.92 | 639 |
| Coal India | COALINDIA.NS | 381.2 | 6.65 | 235290.76 | 824 |
| ONGC | ONGC.NS | 241.05 | 8.32 | 303322.86 | 729 |
| ITC | ITC.NS | 406.55 | 25.93 | 518493.52 | 383 |
| Indian Oil Corp | IOC.NS | 146.78 | 14.87 | 215411.39 | 203 |
| Power Grid Corp | POWERGRID.NS | 293.25 | 17.90 | 275438.87 | 512 |
| REC Ltd | RECLTD.NS | 401.7 | 6.27 | 105776.45 | 260 |
| Power Finance Corp | PFC.NS | 411.3 | 5.90 | 136030.89 | 200 |
| GAIL | GAIL.NS | 180.9 | 10.23 | 127187.52 | 415 |
| NTPC | NTPC.NS | 337.1 | 18.53 | 329952.24 | 345 |
| BPCL | BPCL.NS | 331.65 | 10.58 | 150544.90 | 300 |
| Oil India | OIL.NS | 443.9 | 11.02 | 72205.22 | 412 |
| SJVN | SJVN.NS | 96.75 | 46.51 | 38985.51 | 187 |
| NMDC | NMDC.NS | 71.71 | 9.64 | 63046.14 | 390 |
| HCL Tech | HCLTECH.NS | 1475.6 | 23.58 | 464338.81 | 367 |
| TCS | TCS.NS | 3057.9 | 22.44 | 1235149.97 | 200 |
| Infosys | INFY.NS | 1509.7 | 22.69 | 671526.58 | 416 |
| Wipro | WIPRO.NS | 250.75 | 19.54 | 281030.58 | 440 |
| Tech Mahindra | TECHM.NS | 1458.5 | 28.50 | 144252.36 | 310 |
| Castrol India | CASTROLIND.NS | 220.73 | 22.76 | 21832.89 | 389 |
| Petronet LNG | PETRONET.NS | 290.55 | 11.75 | 45785.16 | 341 |
| GSFC | GSFC.NS | 208.12 | 13.45 | 8362.61 | 203 |
| NALCO | NATIONALUM.NS | 188.41 | 6.57 | 34603.95 | 633 |
| Chennai Petro | CHENNPETRO.NS | 691.1 | N/A | 10773.49 | 69 |
| SAIL | SAIL.NS | 125 | 16.98 | 54680.00 | 159 |
| Indigo | INDIGO.NS | 5747.5 | 30.63 | 222153.51 | 17 |
| Bajaj Auto | BAJAJ-AUTO.NS | 8118 | 31.02 | 236008.95 | 258 |
| Hero MotoCorp | HEROMOTOCO.NS | 4311.5 | 19.55 | 86236.90 | 303 |
| TVS Motor | TVSMOTOR.NS | 2812.7 | 60.48 | 137189.16 | 36 |
| MRF | MRF.NS | 148900 | 33.45 | 63150.57 | 29 |
| Britannia | BRITANNIA.NS | 5644.5 | 62.32 | 142184.39 | 133 |
| Nestle India | NESTLEIND.NS | 2227.3 | 69.08 | 233906.58 | 179 |
| Dabur | DABUR.NS | 518.05 | 52.33 | 91886.01 | 201 |
| Marico | MARICO.NS | 699.75 | 55.67 | 94604.11 | 150 |
| Colgate Palmolive | COLPAL.NS | 2212.5 | 43.05 | 66987.86 | 245 |
| PGHH | PGHH.NS | 13216 | 59.38 | 43870.12 | 100 |
| Gillette India | GILLETTE.NS | 10520 | 64.73 | 35217.91 | 89 |
| Pidilite | PIDILITIND.NS | 2887.5 | 70.79 | 155985.63 | 69 |
| Asian Paints | ASIANPAINT.NS | 2428.5 | 62.43 | 236893.14 | 105 |
| Berger Paints | BERGEPAINT.NS | 574.7 | 55.58 | 68651.37 | 68 |
| Akzo Nobel India | AKZOINDIA.NS | 3789.9 | 39.90 | 17259.32 | 160 |
| Kansai Nerolac | KANSAINER.NS | 244.6 | 17.21 | 20413.07 | 104 |
| Grasim | GRASIM.NS | 2766.1 | 49.43 | 190125.68 | 37 |
| UltraTech Cement | ULTRACEMCO.NS | 12300 | 53.54 | 365570.77 | 63 |
| Shree Cement | SHREECEM.NS | 30500 | 99.30 | 112545.30 | 39 |
| Ambuja Cement | AMBUJACEM.NS | 611.35 | 36.05 | 150582.83 | 33 |
| ACC | ACC.NS | 1817.6 | 14.15 | 36698.62 | 41 |
| Dalmia Bharat | DALBHARAT.NS | 2202 | 44.12 | 41301.81 | 45 |
| Ramco Cements | RAMCOCEM.NS | 1190 | 100.76 | 28118.75 | 17 |
Dividend Yield (%) = (Annual Dividend / Share Price) × 100 [2]
Best Dividend Stocks for Long-Term Investment
| Stock | Dividend Yield (%) | P/E Ratio | Market Cap (₹ Cr) |
|---|---|---|---|
| Coal India | 824 | 6.65 | 2,35,291 |
| ONGC | 729 | 8.32 | 3,03,323 |
| ITC | 383 | 25.93 | 5,18,494 |
| Infosys | 416 | 22.69 | 6,71,527 |
| HCL Tech | 367 | 23.58 | 4,64,339 |
| Vedanta | 639 | 11.24 | 1,76,065 |
| Power Grid | 512 | 17.90 | 2,75,439 |
| NTPC | 345 | 18.53 | 3,29,952 |
| Wipro | 440 | 19.54 | 2,81,031 |
| GAIL | 415 | 10.23 | 1,27,188 |
Sector-Wise Dividend Leaders
| Sector | Leading Stocks | Avg Dividend Yield (%) | Avg P/E Ratio | Total Market Cap (₹ Cr) |
|---|---|---|---|---|
| Energy & Oil | ONGC, BPCL, IOC, Power Grid | 300–700 | 12.9 | ₹10,00,717 |
| Mining & Metals | Coal India, Hindustan Zinc, Vedanta | 600+ | 11.9 | ₹5,94,987 |
| IT Services | Infosys, TCS, Wipro | 200–440 | 21.6 | ₹21,83,708 |
| FMCG | ITC, Britannia, Dabur, Nestle | 100–380 | 59.3 | ₹9,86,381 |
| Auto | Bajaj Auto, Hero MotoCorp, TVS Motor | 250–300 | 37.0 | ₹4,59,434 |
| Utilities | NTPC, SJVN, REC, PFC | 200–500 | 19.9 | ₹6,10,403 |
Final Thoughts
With market volatility being part of life in the world we live in, there must be some form of stability with reward and that is exactly what high dividend yield stocks will provide. They do not guarantee huge fortunes in a short period but they can bring more valuable thing that stable income, financial stability and tranquility.
Energy, PSU, FMCG, and IT sectors are some of the areas of dividends that the 2025 Indian stock market is rich in. Companies such as Coal India, ONGC, Infosys and Power Grid are not only being able to pay the dividends but they are also demonstrating good fundamentals, the government support and the long-term growth potential.
When you diversify your portfolio or to strike the right balance, remember that the following points are essential:
- Look beyond the large numbers to pay attention to sustainable dividend yield.
- Invest in a wide range of sectors to minimize the risks and enhance income stability.
- You may wish to consider reinvesting dividends to achieve higher returns in the long term by using compound interest.
Being a retiree wanting to get a good stream of cash, a young professional with the goal of wealth creation or a long term investor interested in financial independence, dividend investing is one of the best tried and tested options of predictable growth.
Disclaimer
The contents of this article are educational and informative in nature. It is not financial or investment or tax advice. Although we seek to make reliable and current data, the stock markets have risk and fluctuation and the previous performance cannot represent the future performance.
I urge the reader to seek the advice of a licensed financial advisor or research on his/her own before investing their money. The author and the publisher have no liability on the financial losses or the consequences of the utilization of this content.
Make a good investment and be updated.
Frequently Asked Questions (FAQs)
Some of the highest dividend paying stocks right now are Coal India, ONGC, Vedanta and Hindustan Zinc. [9] These businesses provide good payouts which are backed up by high market caps and incomes.
Yes, there are numerous companies that pay dividends that are also rather healthy financially and examples can be found within necessary industries. They generate yield in addition to the ability to appreciate in long term value of capital particularly with the reinvestment of dividends.
A dividend yield of more than 3 per cent is usually appealing. Nevertheless, yield should be complemented with company fundamentals so that the amount of payout is not risky or unsustainable.
- Identify companies that have a record of good consistent dividends payed out
- Make sure there is good profit margin and debt is manageable in the business
- When the business fundamentals are weak avoid the stocks that yield oddly high
Majority of firms make dividend payments to shareholders on an annual or semi-annual basis but some large-cap companies make quarterly dividend payment. This is done according to the company policy and profitability.
Yes, the dividend income goes into your total income and get taxed as per your bracket of income tax. [6] It has no special rate and it does not charge Dividend Distribution Tax (DDT) anymore to companies. [6]
- Report as income, part of income under the head other sources of income in your ITR
- Maintain a list of dividends received in order to file tax returns
- It applies tax even in case of reinvestment of dividends with DRIPs
Absolutely. The last category is dividend stocks that make perfect entry point stock since it provides frequent income and is normally related to mature established businesses. [15] They make a good foundation in the creation of long-term wealth.
Yes, in many cases, they serve as a buffer time in bad periods. The steady dividend checks might bring cash flow into the market even during the times when the stocks are down and lessen the level of worry that any investor would have. [27]
- The dividend receipts provide protection in the declining stock shares
- In a volatile market, it is important to understand that high dividend stocks are not always in offensive sectors.
- Reinvesting dividends that are paid may enhance long-term earnings in case of lows
This is determined by what you want to do. Assuming you are growing your wealth, reinvesting can be used to speed up compounding. It might be better to take the cash should you be retired or are in need of income.
