Highest Dividend Paying Stocks in India

For an investor looking to generate income from dividends, he would definitely turn his attention to stocks with a high dividend yield.  In this blog, we have highlighted the highest dividend paying stocks in India for your convenience.

 

Definition of Dividend Yield

Dividend Yield is a financial ratio that represents how much a company pays in yearly dividends in relation to its stock price. It is calculated as follows: 

 % Dividend Yield = {Dividend / Share Price} *100

Highest Dividend Paying Stocks for 2025 in India

As per Smallcase, the highest dividend paying stocks in India based on the high dividend yield as of 16 January 2026 are as follows:  

 

 

1. Castrol India Ltd

Coke and refined petroleum products are supplied by Castrol India Limited. The business produces lubricating oils.

 Dividend Yield: 6.93%  

 Share Price: Rs.187.57  

 Market Cap: Rs.18,552.97 Cr  

To buy a high dividend yield stock, open a demat account.

 

2. Vedanta Ltd

Copper, Aluminum, Iron Ore, Power, Zinc, Lead, and Silver, Oil and Gas, and Others are the segments in which Vedanta Limited, a multinational diversified natural resource business, operates.

Dividend Yield: 6.44 %    

Share Price: Rs.675.75  

Market Cap: Rs.1,85,341.3 Cr  

 

3. Coal India Ltd

A holding company is Coal India Limited (CIL). Coal production and sales are the company's activities. In addition to the steel and power industries, it also supports the brick, cement, fertilizer, and kiln sectors.

Dividend Yield: 6.13%   

Share Price: Rs.432.20  

Market Cap: Rs.266,353.12 Cr  

 

4. Oil and Natural Gas Corporation Ltd

An international holding company for energy is Oil and Natural Gas Corporation Limited. The company explores, develops, and produces natural gas and crude oil.

Dividend Yield: 4.93%   

Share Price: Rs.248.23

Market Cap: Rs.312,280.27 Cr  

 

5. REC Limited

Other financial services and operations that REC is involved in include credit granting.

Dividend Yield: 4.87%  

Share Price: Rs.369.90  

Market Cap: Rs.97,402.96 Cr  

   

 

Why Invest in High Dividend Yield Stocks?

High dividend yield stocks can be an excellent addition to a portfolio for:

• Regular passive income

• Reduced risk for large capital losses in a downturn market

• Achievable total returns when combined with other forms of stock appreciation.

 

 

Risks

• A very high dividend yield can also be unsustainable. If a company's earnings decline or it undergoes some financial turmoil, it may reduce or omit dividend payments entirely. 

• On rare occasions, companies with high yields are regarded thus because of their sharp fall in stock prices. Such deep-seated issues might indicate that the stock is indeed going to be a "value trap" instead of a worthy investment.

• High dividend paying stocks such as utilities and REITs can be highly sensitive to increasing interest rates.

 

Conclusion

Investing in high dividend paying stocks in India can be a way of regular income. These stocks provide a steady cash inflow while reducing risks during market fluctuations. It is a good chance to start looking at the top dividend-paying stocks in India for 2025.

However, high dividend yield stocks should not be the sole factor in your investment decision. You need to ensure that the business is fundamentally strong and can sustain dividends in the foreseeable future. Carry out your research or consult with your financial planner before investing.

 

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Disclaimer: No buy or sell recommendation. No investment or trading advice advice it is. Always discuss with some eligible financial advisor before making financial decisions.