As an investor, your only goal is to maximize the returns with minimum risk, right?
That’s why you were searching for the highest dividend-paying stocks in India.
You would be surprised to know that some stocks could give you more returns than a regular bank Fixed Deposit.
You could get more than 8% return as an annual dividend from companies like Chennai Petroleum and Indian Oil Corporation.
That means an amazing return of more than Rs. 8,000 on the investment of Rs. 1,00,000 from stock dividends as compared to getting a maximum of Rs. 7,000 from a bank FD interest.
I have simplified things for investors who just want to see which stock would have given the maximum returns if Rs. 1,00,000 is invested on 1st April 2023 and at least kept for a year.
Disclaimer: I do not recommend any particular stock. The stock names mentioned in this article are purely on a historical dividend payout basis. Take your own decision before investing.
For example, on 1st April 2023, ITC shares were trading for Rs. 384. For Rs. 1 Lac you could have purchased 1,00,000 / 384 = 260 shares.
ITC Limited paid Rs. 15.75 dividends per share in the last financial year. Total dividends received = Rs. 15.75 x 260 shares = Rs. 4,095.
Your dividend return = 4,095/ 1,00,000 = 4.09% just by holding ITC stock for a year without doing anything.
The dividend returns are irrespective of ITC price movements, making it one of the best passive investment options.
Below is the list of the best highest dividend return stocks in India for 2024.
| Stock | Share Price | Dividend Paid | Dividend return | |
| 1. | Chennai Petroleum | 591.30 | 55 | 9.30% |
| 2. | IOCL | 136.40 | 12 | 8.79% |
| 3. | BPCL | 296.55 | 21 | 7.08% |
| 4. | IL&FS Investment Managers | 10.94 | 0.70 | 6.39% |
| 5. | Coal India | 417.45 | 26 | 6.22% |
| 6. | Jagran Prakashan | 83.18 | 5 | 6.01% |
| 7. | Hindustan Zinc | 498.50 | 29 | 5.81% |
| 8. | HPCL | 376.85 | 22 | 5.83% |
| 9. | ONGC | 257.90 | 12.50 | 4.84% |
| 10. | Balmer Lawrie Investment | 78.62 | 3.8 | 4.83% |
| 11. | PTC India Ltd | 178.20 | 7.80 | 4.37% |
How to Find High-Yield Dividend Paying Stocks
You can use the free Screener tools like “Tickertape”, “Screener” and Moneycontrol website to generate the list as shown above.
On the Screener website click on the “Create New Screen” tab.
On the query, window type the criteria shown in the red box.
You will get a list of the best high dividend-paying stocks in India. You can change the parameters if you wish to get a more customized list of stocks.
To arrange stocks in descending order click on the “Div Yld%” column. The highest dividend-yielding stocks will be shown at the top.
You can see that my list doesn’t include top search results.
The reason is – on researching Taparia tools financials, I found that they don’t have a history of paying dividends.
Taparia tools have paid dividends only in the last few years starting from 2022. They may or may not continue to do so.
Similarly, Fortis Malabar was showing losses and negative growth.
Xchanging Solutions was also rejected because its financials show an irregular dividend payout pattern.
Moreover, Xchanging Solution is showing negative compounded “Sales” and “Profit” growth in the past 3 years and above. That creates a question about the long-term sustainability of the company.
Here the point is to find solid companies with strong financials.
The list contains stocks with high dividend payments. But, you should do your own research by looking at sales, profit, management, reading candlestick charts, and other parameters before investing.
Note – We have provided data on the top dividend-paying stocks in India. Learn how to find fundamentally solid companies before you invest.
Next, you can use the moneycontrol website to find the amount of dividends paid by an individual company.
For example, when you look for ITC stock, you get the company and its financial information. Scroll down to the corporate action section and click the dividends column.
You can use ITC’s price chart to get the stock price as of April 01, 2023.
NOTE – The company may stop paying dividends at the same rate in the future or discontinue dividend payments altogether.
Dividend payment depends on the profits earned and the dividend payout policy of the company.
Hence, you need to exercise caution while making investments.
Disclaimer: I do not recommend any particular stock. The stock names mentioned in this article are purely on a historical dividend payout basis. Take your own decision before investing.
You need a Demat account to invest in dividend-paying stocks. You can open an account with Zerodha to get zero brokerage on stock delivery. You can also check our list of the best Demat accounts in India to compare the top stock brokers.
Overview of the 11 Best Dividend Paying Stocks In India 2024
#1. Chennai Petroleum Corporation (CPCL)- 9.30% Dividend Return
Based out of Chennai, CPCL is a subsidiary of Indian Oil Corporation. It was earlier known as Madras Refineries Limited.
CPCL is in the business of refining crude petroleum, producing lubricating oil and supplying various petroleum products like LPG, Aviation Turbine Fuel, Diesel, Kerosene and Fuel Oil.
CPCL has a crude refining capacity of 2.35 Lacs barrels per day. High-Speed Diesel accounts for ~57% of the total products sold.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 9,266 Cr | Rs. 7,480 Cr | 13.5 | Rs. 10 | 30.20% |
#2. Indian Oil Corporation Limited (IOCL) – 8.79% Dividend Return
IOCL is a Maharatna Company, the largest government-owned oil refining company. IOCL contributes 31% of the total refining capacity in India. It owns 11 refineries across India with a total capacity of 80.80 MMTPA.
IOCL is the 2nd largest petrochemical company with 4.4 MMTPA capacity. It sells various petrochem products under the brand name “PROPEL”.
Other businesses of Indian Oil include – Natural gas, Oil exploration, gas pipeline network and EV charging points.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 201,510 Cr | Rs. 181,365 Cr | 11.8 | Rs. 10 | 39.60% |
#3. Bharat Petroleum Corporation Limited (BPCL) – 7.08% Dividend Return
BPCL is a government-owned company engaged in the business of marketing petroleum products and refining of crude oil.
BPCL refineries are located at Mumbai, Kochi and Bina (Madhya Pradesh). All three combined produce 35.3 MTPA accounting for 14% to 15% of India’s total refining capacity.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 130,698 Cr | Rs. 77,108 Cr | 9.81 | Rs. 10 | 33.40% |
#4. IL&FS Investment Managers – 6.39% Dividend Return
IL&FS Investment Managers was set up in 1987 and is a subsidiary of Infrastructure Leasing & Financial Services Limited.
The company is a PE fund management company that offers Investment Banking, Asset Management and Infrastructure financing services.
IL&FS Investment revenue sources include – fees from management & consultancy services (89%) and advisory services (11%).
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 377 Cr | Rs. 180 Cr | 98.3 | Rs. 2 | 217% |
#5. Coal India Limited – 6.22% Dividend Return
Coal India is a government-owned monopoly miner with 318 mines in operation spread in eight states of India.
Coal India is responsible for nearly 80% of India’s overall coal production. In capacity terms, Coal India mined 703.2 Million tonnes in FY23.
Coal India’s major consumers include companies from the power & steel sectors, cement, fertilizers and brick kilns.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 259,512 Cr | Rs. 96,197 Cr | 7.21 | Rs. 10 | 42% |
#6. Jagran Prakashan Ltd- 6.01% Dividend Return
Jagran Prakashan is a multi-media conglomerate with 83+ million readers of 2 newspaper prints – Dainik Jagran (Hindi) and Inquilab in Urdu.
Main operations include Print business, Radio (Brand – Radio City) Digital newspapers, websites & publications.
Jagran is listed as top 10 company in the News/ Information category in digital media having 300+ editions & sub-editions in 10 languages and print circulation in 13 states of India.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 1,913 Cr | Rs. 1,903 Cr | 11.8 | Rs. 2 | 59.20% |
#7. Hindustan Zinc Limited – 5.81% Dividend Return
Based out of Udaipur (Rajasthan), Hindustan Zinc commands ~75% market share in Zinc production. In fact it is 2nd largest integrated Zinc producer in the world. And 3rd largest silver producer in the world with 800 MT of annual output.
The bulk of revenues comes from Zinc (62%), Silver (19%) and Lead (14%). The smelting capacities are under:
- Zinc – 9,13,000 TPA
- Lead – 2,10,000 TPA
- Silver – 800 TPA
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 212,681 Cr | Rs. 7,642 Cr | 24.2 | Rs. 2 | 70.50% |
#8. Hindustan Petroleum Corporation Limited (HPCL) – 5.83% Dividend Return
HPCL is a 100+ years old company that owns & operates the largest Lube refinery in India. It has the 2nd largest product pipeline and LPG marketing set-up.
The business includes refining crude oil, marketing petroleum products, and producing hydrocarbons.
HPCL’s current standalone crude refining capacity is 23.2 MMTPA. Apart from that, it refines 11.3 MMTPA additionally through JV.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 85,134 Cr | Rs. 45,896 Cr | 20.3 | Rs. 10 | 27.90% |
#9. ONGC Oil & Natural Gas Corporation – 4.84% Dividend Return
With a 71 percent market share, ONGC is the largest crude oil and natural gas company in India. Apart from oil extraction, ONGC also extracts natural gas and manufactures value-added products like LPG, Naphtha, Propane, Ethane, Butane and kerosene oil.
70% of its revenue is through crude oil, 17% from natural gas and the rest 13% from value-added products.
ONGC has 60+ years of oil exploration experience. ONGC has discovered 8 out of 9 oil-producing basins of India.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 328,974 Cr | Rs. 352,276 Cr | 7.92 | Rs. 5 | 31.30% |
#10. Balmer Lawrie Investment – 4.83% Dividend Return
Balmer Lawrie Investments Limited was formed as a result of the Government of India’s disinvestment of 33.58% of equity holding of 59.58% in IBP Co.
Balmer Lawrie Investments Limited is presently under the administrative control of the Ministry of Petroleum & Natural Gas, Government of India.
The Company is a major stakeholder (62%) in Balmer & Lawrie Co. B&L Co, which is in the business of – industrial packaging, greases & lubricants and producing leather chemicals.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 1,802 Cr | Rs. 1,258 Cr | 20.3 | Rs. 1 | 50.20% |
#11. PTC India Limited – 4.37% Dividend Return
PTC Indian Limited is in the business of electrical power trading generated by large power projects in India. Promoters of PTC India are – Power Grid, NTPC, Power Finance Corporation and NHPC.
PTC was formed in 1999 by the government of India and also does cross-border power trade with Bhutan, Nepal and Bangladesh.
78% of the revenues of PTC come from solutions for power generators & utilities and 21% from cross-border power trading.
Key Metrics:
| Market Cap | Networth | Stock P/E | Face Value | Dividend Payout |
| Rs. 5,325 Cr | Rs. 5,302 Cr | 11.0 | Rs. 10 | 48.40% |
Conclusion
Those were the current list of top dividend-yielding stocks in India. If you have any problems running the Screener query on “Screener” or “Tickertape” or have doubts then you can mention them below in the comments.
FAQs
Which stock gives the highest dividend in India?
Taparia tools paid the highest dividends in India. But it doesn’t have a history of paying regular dividends. It has recently started paying dividends from 2022.
Which stocks will pay dividends in 2024?
Every company has an internal dividend-paying policy. Declaring and paying dividends is a management decision and depends on a lot of factors like – net profit earned, expansion plan of the company etc.
A company may earn net profit but choose to deploy capital in green field projects ruling out the possibility of paying dividends.
How many times a year can a company pay dividends?
There is no set limit. Dividends are paid out of company profits and can be paid multiple times in a given year.
What is Dividend Yield?
Dividend Yield = Dividend paid per share / Share Price.
Shows return on investment in terms of dividend income. The yield will keep on changing with the change in stock price.
What is a Dividend Ratio?
Dividend Ration = Dividend per share / Earnings per share
Shows the proportion of earnings that the company paid out as dividends. This will be a fixed value for the year.
Very nice and extreme.
Thank you.
Rajesh.