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 10% return as an annual dividend from companies like Indian Oil, NMDC and Coal India.
That means an amazing return of more than Rs. 10,000 on the investment of Rs. 1,00,000 from stock dividend than 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 in April 2021 and 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 2021, ITC shares were trading for Rs. 220. For 1 lac you could purchase 1,00,000 / 220 = 454 shares.
ITC Limited paid Rs. 11 dividends per share in the last financial year 2021-22. Total dividends received = Rs. 11 x 454 shares = Rs. 4,994.
Your dividend return = 4,994/ 1,00,000 = 4.99% just by holding ITC stock for a year.
The dividend returns are irrespective of ITC price movements.
Below is the list of the best highest dividend return stocks in India for FY 2021-22.
| Stock | Share Price as on April 01, 2021 | Dividend paid during FY 21-22 | Dividend return | |
| 1. | Allsec Tech | 326.30 | 60 | 18.39% |
| 2. | IOCL | 62.10 | 10.50 | 16.91% |
| 3. | Coal India | 132.15 | 17.50 | 13.24% |
| 4. | PTL Enterprise | 19.48 | 2.50 | 12.83% |
| 5. | Power Fin Corp | 114.40 | 12.75 | 11.14% |
| 6. | NMDC | 138.45 | 14.74 | 10.65% |
| 7. | National Aluminum Co | 58.75 | 6.00 | 10.21% |
| 8. | SAIL* | 83.85 | 8.30 | 9.90% |
| 9. | REC Ltd | 132.75 | 12.21 | 9.20% |
| 10. | ONGC | 104.35 | 9.10 | 8.72% |
| 11. | Balmer Lawrie Investment | 471.30 | 38 | 8.06% |
* SAIL paid dividends only in 3 out of the past 5 years. Being an established govt company with a track record. I have considered SAIL in the list.
You can use the free Screener tool 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 the 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 once in the last 10 years, only in 2022.
Next time whether the company will pay or not any further dividends is questionable.
Similarly, Aurum Proptech was showing losses and negative growth.
Vedanta Limited was also rejected because Vedanta’s financials show an irregular dividend payout pattern.
Moreover, Vedanta is showing losses in certain years due to fluctuations in other income. The company paid dividends even in the year they made a loss. That creates a question about the long-term sustanability 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 dividend 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 for getting the stock price as of April 01, 2021.
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 best Demat accounts in India to compare the top stock brokers.
11 Best Dividend Paying Stocks In India 2022
#1. Allsec Tech – 18.39% Dividend Return
Based out of Chennai, Allsec Tech operates in Digital business service and HR outsourcing solutions.
Allsec offers end-to-end robust HR & compliance solutions. Allsec is a sought out BPO for providing payroll processing services across the globe.
The company services 400+ global clients spread through centers located in India, Philippines, USA and London.
#2. Indian Oil Corporation Limited (IOCL) – 16.91% Dividend Return
IOCL is the largest government-owned oil refining company. IOCL contributes 32% of the total refining capacity in India.
IOCL owns 11 refineries across India with a total capacity of 81.2 MMTPA.
#3. Coal India Limited – 13.24% Dividend Return
With 48% coal reserves under control, Coal India is a government-owned monopoly miner.
Coal India is responsible for nearly 83% of India’s overall coal production. In capacity terms, Coal India mined 596 Million tonnes in the FY21.
Coal India’s major consumers include companies from the power & steel sectors, cement, fertilizers and brick kilns.
#4. PTL Enterprises – 12.83% Dividend Return
PTL Enterprises is a 1959 established Kerala-based tyre manufacturing company. PTL was acquired by Apollo tyres in 1995.
Presently, PTL enterprise manufactures tyres solely for Apollo tyres on a long-term lease basis.
Note – PTL has given only 2% compound profit growth for the last 5 years. Also, the return on equity is only 8%.
#5. Power Finance Corporation – 11.14% Dividend Return
PFC is a government of India owned (~56% stake) Maharatna company.
PFC functions as an infrastructure finance company and is registered with the RBI as a Non-Deposit taking NBFC.
Main operations include providing fund-based and non-fund based finance to power projects in India.
#6. NMDC Limited – 10.65% Dividend Return
National Mineral Development Corporation Limited (NMDC) is a government of India Navratna company.
NMDC is India’s largest iron ore manufacturer, accounting for 18% of the total domestic production.
#7. National Aluminum Co (NALCO) – 10.21% Dividend Return
NALCO is engaged in the manufacturing and selling of Alumina and Aluminum. The company mines 73.02 lac tpa bauxite and 21.06 lac tpa alumina.
NALCO is the lowest-cost producer of metallurgical grade alumina and bauxite.
#8. Steel Authority of India (SAIL) – 9.90% Dividend Return
Steel Authority of India Limited (SAIL) is the largest steel-making company in India. SAIL produces iron and steel at five integrated plants and three special steel plants.
Products include structural, TMT bars, railway products, wheels & axles, Hot/Cold rolled, stainless steel and galvanized products.
The company’s current crude steel production capacity is 16.2 mmt and has almost completed its capex plan to expand capacity to 21.4 mtpa.
#9. Rural Electrification Company (REC) Limited – 9.20% Dividend Return
REC Is a nodal agency for the implementation of various GoI power schemes aimed at developing the country’s power sector.
The company finances projects involved in power generation, transmission to distribution.
REC offers long-term, medium & short-term loans and working capital for projects in the power sector.
#10. ONGC Oil & Natural Gas Corporation – 8.72% Dividend Return
With a 71 percent market share, ONGC is the largest crude oil and natural gas company in India.
ONGC has 60+ years of oil exploration experience. ONGC has discovered 8 out of 9 oil-producing basins of India.
Apart from oil extraction, ONGC also extracts natural gas and manufactures value-added products like LPG, Naphtha, Propane, Ethane, Butane and kerosene oil.
#11. Balmer Lawrie Investment – 8.06% 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 does not carry on any business except to hold 105679350 equity shares of Rs.10/- each of Balmer Lawrie & Co. Ltd.
Balmer Lawrie Investments Limited shall divest its shareholding and wind up its business on completion of the disinvestment of shares of Balmer Lawrie & Co. Ltd.
Conclusion
Those were the current list of top dividend-yielding stocks in India. If you have any problems running the Screener query or have doubts then you can mention them below in the comments.
Very nice and extreme.
Thank you.
Rajesh.