10 Highest dividend-paying stocks in India in 2024
Best Dividend Paying Stocks
Sub-Sector
Market Cap (Rs. in cr.)
Close Price (Rs.)
Dividend Yield (%)
Dividend Per Share (Rs.)
Coal India Ltd
Mining – Coal
2,72,423.41
442.05
5.49
24.25
Oil and Natural Gas Corporation Ltd
Oil & Gas – Exploration & Production
3,39,541.74
269.90
4.17
11.25
Power Grid Corporation of India Ltd
Power Transmission & Distribution
2,60,556.42
280.15
3.95
11.06
Tech Mahindra Ltd
IT Services & Consulting
1,21,562.48
1,244.55
3.62
50.00
ITC Ltd
FMCG – Tobacco
5,32,723.07
426.70
3.62
15.50
HCL Technologies Ltd
IT Services & Consulting
4,21,547.87
1,556.70
3.09
48.00
Tata Consultancy Services Ltd
IT Services & Consulting
14,17,114.43
3,916.75
2.97
115.00
Infosys Ltd
IT Services & Consulting
6,19,012.90
1,495.45
2.27
34.00
Tata Steel Ltd
Iron & Steel
2,03,668.82
163.15
2.16
3.60
Hero MotoCorp Ltd
Two Wheelers
93,578.37
4,680.75
2.14
100.00
Note: We have used Tickertape Stock Screener to get the best dividend-paying stocks in India. The information is dated 2nd April 2024 and is based on the following parameters:
Stock Universe: Nifty 50
Dividend Yield: High – Sort from highest to lowest
A brief on the filters used to discover the best highest dividend-paying stocks in India
Dividend Yield: The ratio is calculated as dividend per share (DPS) for the most recent fiscal year divided by the close price of the stock. A dividend is a portion of the company’s profit paid to shareholders. Dividend per share (DPS) refers to the total dividend paid out divided by the company’s common stock.
The ratio is used to calculate the earnings on investment, considering only dividends declared. The higher the dividend yield, the better.
Factors to consider when investing in the highest dividend-paying stocks
Yield ratio: A high yield ratio indicates that the company is reinvesting very little amount back into the business and paying more to the shareholders. Hence, always do a deeper analysis of the company’s financials before investing.
Risk: High dividend-paying stocks are usually considered safer than other growth stocks. The reason behind this is when there is a sudden market crash or decline, high dividend-paying stocks do not lose their value. These stocks also help in diversifying the risk potential. However, consider your risk appetite before investing.
Fundamentals: Investing in a company because of a high dividend payout can be fatal for your portfolio in the long run. Hence, it is wise to analyse the company for its fundamentals instead of looking at a high dividend yield.
Benefits of investing in high dividend yield stocks
Here are a few benefits of investing in stocks that pay dividends:
They are a great source of passive income.
You can reinvest dividends.
They are less risky than other stocks.
They are less prone to market volatility.
Conclusion
High dividend-yielding stocks indicate companies with financial stability. It also shows that the company is sustainable and its stock can give good returns over time. Refer to the list of the best, highest dividend-paying stocks mentioned in this article when you are curating your investment/financial plan. On that note, it is always worthwhile to consult a financial advisor while doing this. Happy Investing!
FAQs
What are dividends?
Dividends are part of the profit that shareholders earn on their shares for being part owners of the company. It can be paid in cash, stock, or other forms.
What are the top stocks that pay dividends?
The top dividend-paying stocks in India are:
Coal India Ltd
Oil and Natural Gas Corporation Ltd
Power Grid Corporation of India Ltd
Tech Mahindra Ltd
ITC Ltd
These stocks are filtered using Dividend Yield on Tickertape Stock Screener. The data is from 2nd April 2024.
When do stocks pay dividends?
Dividends are usually a part of the profit that the company shares with its shareholders. Hence, they are declared quarterly after a company finalises its income statement.
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The Coca-Cola Company's ( KO ) dividend yield is 3.13%, which means that for every $100 invested in the company's stock, investors would receive $3.13 in dividends per year. The Coca-Cola Company's payout ratio is 73.72% which means that 73.72% of the company's earnings are paid out as dividends.
The Coca-Cola Company's ( KO ) dividend yield is 3.13%, which means that for every $100 invested in the company's stock, investors would receive $3.13 in dividends per year. The Coca-Cola Company's payout ratio is 73.72% which means that 73.72% of the company's earnings are paid out as dividends.
Yes, dividend income is taxable in India. Are there any expenses which are allowed as a deduction from dividend income under the head “income from other sources”? Yes, in the case of dividends, the amount paid as interest on any monies borrowed to invest in the shares or mutual funds is allowable as a deduction.
Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
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