15 Highest Dividend Paying Stocks in India 2023

Dividend Investing

What is a Dividend Investing?

The dividend is the distribution of companies earnings to the shareholders. As per section 2(35) of the Companies Act 2013, the Dividend is the profit of the company not retained in the business. But, distributed among the shareholders in proportion to the shares held by them. The dividend shall be paid to shareholders in uniform proportion as per their shareholdings.

Dividends are payable for the financial year after the final accounts are signed and the amount of distributable profits are available post-approval by the Board of directors of the Company (BOD). The BOD shall decide the rate at which dividends be payable to its shareholders. Companies Pay Dividends as a kind of gratuity (a form of a tip) paid by the management of the company to its shareholders for their continuous support and trust in the company.

A high dividend is a great part of earnings for an investor. If invested well, an investor can earn a pretty good return on his/her portfolio to have the desired financial freedom. And, it is also a metric to evaluate the company’s financial performance. The payout of high dividends over the years on a consistent basis can tell us a lot about the companies earning capability.

Stocks with a good dividend track record are considered safe investments. A consistent dividend-paying stock (companies that pay dividends consistently) can provide consistent cash flow to the investors which, when reinvested can provide better returns over the long term.

Two types of dividends.

Final dividend

It is the dividend amount declared by the board of the company payable to the shareholders post-completion of the annual general meeting. Mostly payable on an annual basis. A high dividend receipt is a great form of passive income stream.

Example: Let’s take ITC limited, for reference.

  • Company name: ITC limited
  • Share price (CMP): Rs. 380
  • Number of shares: 1,000
  • Total investment: Rs.3,80,000

If you own 1,000 shares of ITC limited at a price of Rs. 380 per share. Your total holdings would amount to Rs. 3,80,000/-

As per the recent dividend declaration by ITC limited, you are eligible for a high dividend income of Rs. 11.5 per share amounting to net dividend earnings of Rs. 11.5. That’s over a 3% dividend yield.

Interim dividend

It is the dividend paid by the company in the middle of a fiscal year. The board of the company, upon its favorable profit or comfortable cash position, decides to provide the shareholders with an interim dividend. This kind of dividend can be provided at any part of the year. But, remember that the interim dividend might not be as high as the final dividend.

Let’s take the same example as above, (Hypothetical scenario)

If you own 1,000 shares of ITC limited at a price of Rs. 380 per share. Your total holdings would amount to Rs. 3,80,000/-

Suppose the ITC Limited board approves an interim dividend of Rs. 8 per share. You are eligible for a dividend income of Rs. 8 per share amounting to total dividend earnings of Rs. 8,000. That’s at a 2.1% dividend yield. But, since it is an interim dividend. It is earnings apart from the year-end dividend an investor can expect.

If that’s not appealing, think about this.

So, an investor can not only expect an income of Rs. 11,500 as an annual dividend. He/she can also earn Rs. 8,000 as an interim dividend. Earnings of Rs.19,500 (11,500+8,000) for your total holdings of Rs. 3,80,000 makes your return via dividend at the rate of 5.15%. Much more favorable than Fixed deposits (FD A/c) in banks (because of the capital appreciation you get with stock ownership). More favorable because in the stock market, the other form of wealth creation is a capital return.

Capital Appreciation or Dividend Income?

Capital appreciation

It is the rise in the price of shares from the time you purchase to the time you sell. An investor buys a share of the company to make a big return over a period of time. The share price if favorable rises in price and can be sold at a higher price. It is the difference between the buying price and the selling price to arrive at a profit.

Example: Let’s take ITC limited for reference. (Hypothetical example)

  • Company name: ITC limited
  • Purchase Date: 2nd January 2023
  • Share price (CMP): Rs. 100
  • Number of shares: 2,000
  • Total investment: Rs.2,00,000
  • Purchase year: 2010 (Mid)

If you own 2,000 shares of ITC limited at a price of Rs. 100 per share. Your total worth would amount to Rs. 2,00,000/- Over the years, you would have received various stock splits, bonus shares, and dividend income. Apart from such earnings, in the year 2023, you decide to sell all your shares at the current market price (CMP) of Rs. 200 per share. You have straight away doubled your initial investment to take home a profit of Rs. 2,00,000/- (Purchase amount Rs. 2,00,000; the Sale price of your ITC stocks at Rs. 200 per share for 2,000 shares would amount to Rs. 4,00,000 bringing in a profit of Rs. 2,00,000).

That’s the power of long-term holdings. Remember that the earnings are excluding your dividend return over the 10 years span. The fruit of capital growth is seen mostly in the long term.

As said by Mr.Warren Buffett – “Buy low, sell high. It’s pretty simple. The problem is knowing what’s low and what’s high”.

Dividend income

As explained above, it is the revenue receipt, unlike capital growth as in long-term investing of stocks. The income received as a dividend is repetitive in nature as long as you hold on to the stocks and the management decides to not change its dividend policy. Because a company’s board has no legal obligation to provide a dividend to its shareholders.

The power of consistency in wealth creation can be seen. Re-investment of one’s dividend income into the company can provide more shares, to give more dividends. It’s a loop, a repetitive process that’s simple yet extremely effective.

Why should you invest in dividend-paying stocks?

  1. Passive income – Dividend investing results in a great form of an additional stream for investors. They are one of the safest forms of investment. Investing in a quality business with a consistent dividend payout track record provides consistent dividends and one-time capital receipt at the sale of shares.
  2. Predictable – A consistent dividend payout by the company provides predictable cash flow for the investor to look for. Revenue that’s as predictable as any other form of income. Investors can expect his/her exact dividend receipt over the number of shares held.
  3. Safe and reliable – A company with a consistent dividend distribution track record is more reliable than a company without dividend distribution. To payout dividends, the company’s management has to earn such an amount in revenue that provides a comfortable cash position. Hence, management tends to be more competitive to earn such cash flow, the same to be distributed to investors as a dividend.
  4. Re-investment – Over the years, reinvestment of dividends have provided a better return to investors than the one without dividend reinvestment. Consistent reinvestment of dividends into a well-established dividend-based company can yield a better return over time.
  5. Strong financial – As explained above, To provide a consistent dividend to its shareholders. The company has to have a strong cash flow and has to maintain consistency in earnings. Thus, any company that’s both consistent in providing dividends and is improving its dividend yield to its shareholder is worth investing in.

Financial terms in dividend-paying stocks?

Now, we know the importance of dividends and the need for them in one’s portfolio. Here’s a list of checklists that are needed before starting your investment.

Company cash flow

Cash flow is the movement of money in and out of the company. Operational cash flow is the inflow of money into the company via the provision of goods and services by the company. It is the main form of revenue the company generates. Hence, we provide it with high importance.

There have been cases where companies provide dividends to their shareholders even without any stable earnings. The companies sell their assets or take loans to provide a dividend to stay afloat and retain their goodwill in the market. An investor can judge the company’s solvency by reading the company’s cash flow statement.

Earnings yield to dividend yield

As discussed earlier, the company should provide a dividend to its shareholder only by their revenue, the one that goes into the company reserve. Earnings yield is the rate at which a company earns its revenue on a per-share basis. Also known as Earnings per share (EPS). It is the revenue earned by the company divided on a per-share basis. The dividend yield is the earnings an investor earns on a per-share basis.

Let’s take the same example as above, (Hypothetical scenario)

  • Company name: ITC limited
  • Share price (CMP): Rs. 200
  • Number of shares: 1,000
  • Total investment: Rs.2,00,000
  • Outstanding shares – 10,00,000 (No. of shares of the company listed in the stock market)

Company in the year 2019-20, makes an annual turnover of Rs.100 crore. And, after tax, the distributable profit is known as PAT at Rs.10 crore. With outstanding shares of 10,00,000 listed. The EPS of the company would be Rs.100 per share (10 crores after-tax earnings / 10 lakh outstanding shares).

In such a case, If the company decides to provide dividends to its shareholders at Rs. 20 per share. The Dividend yield would be at 10% (Rs.20 dividend amount / Rs.200 CMP * 100).

And the earnings yield to the company would be at 50% (Rs.100 EPS / Rs.200 CMP * 100). Also known as the P/E ratio (Price to earnings ratio) the reciprocal of earnings yield is expressed in a ratio. The per-share earnings of the company to the price paid per share.

Dividend payout policy

It is the management, and the board of directors of the company to decide the rate of dividend if at all provided. It is the integral strategy of the company. And moreover, the company is under no obligation to pay a dividend to its shareholders.

So, as an investor. You should know the company’s dividend policy. The payment consistency, the rate of payment, and the mode of payment.

Financial leverage

As discussed earlier, there are cases where the company had decided to pay a dividend to its shareholders even though the company made no real earnings. In such cases, the management tends to provide a dividend to its shareholders by liquidating its assets or taking up debt, or sometimes both. In such cases, the company’s financials can throw out any mismanagement. And, the cash flow can explain the company’s earnings capability.

Peer comparison

When we say peer comparison, it can be an earnings comparison to the same industry and peer company earnings. And, it can also be the dividend yield compared to its rival company shares. And, the third way of comparison would be to compare our dividend earnings to other asset-class earnings to determine the opportunity cost of capital earnings.

Now, we now know the importance of companies that pay dividends and the checklist to be considered before investing in one. We also checked how wealth creation via dividend-paying stocks is better than other asset classes.

Tax implications: 

Before this financial year, the tax on dividends was a Dividend distribution tax (DDT) wherein, the company and mutual fund providing the dividend had to pay tax on the amount and the individuals need not pay any excess tax over it. Unless the dividend receipt is above Rs. 10 lakh.

As per the Finance Act, 2021. The tax on dividends as in TDS shall be deducted by the company and mutual funds in case of dividend receipt to the investors receivable at over Rs.5,000 at the rate of 10% (Currently, reduced to 7.5% of TDS as a COVID relief measure).

Highest dividend-paying stocks in India (Updated February 2023)

Sl. NoNameCMPDividend YieldEPSP/EPB (x) PEPEGROCE (5 Yrs)ROE (5 Yrs)Dividend Income
1Vedanta Ltd314.325.7738.998.1717.570.2819.0820.1181
2RSWM Ltd162.815.3654.362.992.180.166.694.8825.01
3Hindustan Zinc Ltd346.2514.325.713.4763.043.6629.223.1549.51
4Styrenix Performance Materials Ltd753.3513.94146.075.168.720.142319.65105.02
5NMDC Ltd118.6512.4221.255.589.60.1929.2320.2514.74
6Indian Oil Corporation Ltd78.4510.714.3514.9913.043.1814.316.428.4
7Hinduja Global Solutions Ltd1300.610.51464.7628.1718.030.278.1862.68136.56
8Banco Products (India) Ltd195.410.2420.089.7314.60.818.7413.0220.01
9Steel Authority of India Ltd85.9510.1810.857.474.930.1610.810.388.75
10REC Ltd118.759.6639.513.011.720.319.0317.8611.47
11Coal India Ltd218.99.2547.584.6111.020.3562.947.7920.25
12PTC India Ltd87.48.9215.
13Allsec Technologies Ltd520.458.6535.5914.6249.12-1.3722.2517.0845.02
14Power Finance Corporation Ltd141.58.4853.552.641.290.069.6619.6912
15Standard Industries Ltd29.758.427.871.071.570.0251.04-2.5
  • CMP – Current Market Price. The price per share when we drafted this article.
  • Dividend Yield – Dividend earnings on a percentage basis, the same is calculated on the CMP.
  • EPS – Earnings Per Share. The per-share earnings of the shareholder for his/her holdings.
  • P/E – Price to Earnings ratio, the well-known ratio used to evaluate a company’s valuation.
  • PB (x) PE – Price to Book Value multiplied by Price to Earnings ratio. A known ratio as used by Mr.Benjamin Graham (Father of Value Investing).
  • PEG – Price to Earnings Growth ratio, a well now ratio to determine if the company is valued in accordance to its growth aspect.
  • ROCE (5 Yrs) – Return of Capital Employed, 5 years average in percentage.
  • ROE (5 Yrs) – Return of Equity, 5 years average in percentage.
  • Dividend Incomes – Income an Investor can expect from the stock holdings, on a per-share basis.

High Dividend Paying Stocks V/S Best Dividend Paying Stocks;

The above-mentioned details are about some of the highest dividend-paying companies in India. But high dividend payments are not the same as the best dividend-paying stocks.

Any company can become a high-dividend payer. As explained above, a dividend is a tool used by the management as a sense of gratitude towards its shareholders for sticking with the company over the years. But it can also be a means to attract shareholders. Hence, with a dividend, the management can deceive shareholders into investing in their company.

It is recommended not to invest in a company purely based on its dividend but to consider other factors as well, such as the dividend payout ratio (what percentage of earnings are paid to shareholders out of total earnings), the consistency of the dividend, dividend growth, the source of the dividend, etc.

Considering all factors, we can consider the following as some of the best dividend paying companies in India:

Note: For a high dividend-paying company, the dividend yield can range anywhere from 7% to over 100% at times. But, in the case of the best dividend-paying companies, the dividend yield would be around 1% to 7% at most.

Best dividend-paying stocks in India (Updated February 2023)

SL. NoNameCMPDividend YieldEPSP/EPB (x) PEPEGROCE (5 Yrs)ROE (5 Yrs)Dividend Income
1ICICI Securities Ltd489.604.9037.0313.2280.110.4136.6863.2323.99
2VST Industries Ltd2,969.504.71223.7213.2759.050.8250.0835.50139.86
3Tata Steel Ltd120.354.2423.425.127.010.0715.5320.735.10
4HCL Technologies Ltd1,146.154.1953.2921.51109.272.3027.4522.8248.02
5Sun TV Network Ltd446.403.0844.0610.1320.161.1332.4723.3513.75
6ITC Ltd380.653.0214.7225.95186.843.1332.6723.1511.50
7Hawkins Cookers Ltd6,097.352.46176.5434.55472.642.8657.0248.17149.99
8Infosys Ltd1,599.401.9456.2628.24255.013.0833.5925.8431.03
9Marico Ltd493.901.879.6851.05868.875.1442.3036.129.24
10Cams Services Ltd2,264.901.7155.6440.76676.211.9354.1440.8938.73
11Coromandel International Ltd873.551.3769.9912.4943.220.4727.7126.3911.97
12State Bank of India544.201.3052.7810.3116.390.064.565.817.07
13CRISIL Ltd3,127.001.2578.8042.25613.894.7840.8729.6439.09
14TCS Ltd3,482.301.23111.1831.32409.354.0047.8337.1942.83
15Britannia Industries Ltd4,628.851.2288.9760.853,324.245.3542.8238.0156.47
  • CMP – Current Market Price. The price per share when we drafted this article.
  • Dividend Yield – Dividend earnings on a percentage basis, the same is calculated on the CMP.
  • EPS – Earnings Per Share. The per-share earnings of the shareholder for his/her holdings.
  • P/E – Price to Earnings ratio, the well-known ratio used to evaluate a company’s valuation.
  • PB (x) PE – Price to Book Value multiplied by Price to Earnings ratio. A known ratio as used by Mr.Benjamin Graham (Father of Value Investing).
  • PEG – Price to Earnings Growth ratio, a well now ratio to determine if the company is valued in accordance to its growth aspect.
  • ROCE (5 Yrs) – Return of Capital Employed, 5 years average in percentage.
  • ROE (5 Yrs) – Return of Equity, 5 years average in percentage.
  • Dividend Incomes – Income an Investor can expect from the stock holdings, on a per-share basis.

Dividend Information of a Company: Where to find?

All the details regarding the dividend of stocks can be found on any of the major financial websites in India. Here are a few reliable financial websites to get more information:

  • Investing.com
  • MoneyControl.com
  • Screener.com

Final Thoughts:

An investor has to diversify his/her portfolio into various asset classes such as Stocks, Bullion (Gold & Silver), Bonds, and others. Likewise, while investing in Indian stocks. An investor has to invest in various sectors to build an all-weather portfolio. One that can withstand the covid pandemic like a market crash.

Either invest in Dividend paying stocks or Mutual funds such that you can create a separate source of income. But, when given the option to own a mutual fund that pays dividends or a fund that reinvests back into the holdings, choose the latter.

As you can observe, most of the dividend-paying stock are the companies that are Public Sector Undertakings (PSU), The blue-chip company, and such other high cash-generating companies for they attract investors via their dividend track record. Whilst, the same cannot be done by the penny stocks (those companies with less market capitalization) for they fail to generate sufficient cash flow.

Although most of the above-mentioned company dividend yield seems favorable. Do not consider investing in all of them. Dividend stocks have to be considered due diligently. The consistency of dividend yield has to be given primary importance.

Happy learning! Any suggestions or queries, feel free to comment below. We’ll be happy to assist. In our upcoming articles, we write about bonus paying stocks, how to check company cash flow, and much more. So, stick on!

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Disclaimer: All the information on this website is published in good faith and for general information purpose only.

Also read:

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Diversified asset allocation leads to wealth creation.
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Value Investing – The charm of Investing:
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18 thoughts on “15 Highest Dividend Paying Stocks in India 2023”

  1. Hi! Do you use Twitter? I’d like to follow you if that would be okay.

    I’m definitely enjoying your blog and look forward to new posts.

  2. Thank you for sharing your thoughts. I really appreciate your efforts and I will be waiting for your next post
    thank you once again.

  3. Can I just say what a relief to uncover someone that actually knows what they are discussing on the internet. You certainly know how to bring an issue to light and make it important. More people have to read this and understand this side of the story. I can’t believe you aren’t more popular since you surely possess the gift.

    1. Hi Isabella,

      Thank you for your kind words. It means a lot. Truly motivates us to work hard.
      Yes, we understand when you say “bring an issue to light and make it important”. The dividend investing is or has been left out for over a decade now. Not much being spoken out about it.

      We’ll surely bring out more such content. Be sure to check out and keep your support coming.
      We have all kinds of “Social media” footprint. Be sure to reach us out, link provided at the footer of this and every other page.

  4. I think this is among the most significant info for me. And I’m glad to read your article. But wanna remark on few general things, The website style is ideal, the articles are really nice.
    :D. Good job, cheers

    1. Hi Lupita,

      Thank you for your kind words. Do put down all your suggestions & queries about any of our articles.
      To reach us, you can check out the ‘social media accounts’ listed at the footer of our page.

  5. Hi Rakshith,

    Some genuinely nice and useful info on this website, But all the listed companies are not from the US?
    Can you write one to list down all the US dividend-paying companies?

    1. Hi Mr. Gail,

      Thank you for checking out our content.
      Yes, you are right. None of the above-mentioned companies are from the US. In fact, I wrote the article keeping Indian investors in mind. These are Indian Companies.

      I’ll surely try and come up with an article specifically for US Dividend distributing companies.

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