Top 10 Highest Dividend Paying Stocks in India

Looking for a steady stream of income from your investments? Dividend-paying stocks might be the answer. These companies share some of their profits with shareholders through regular cash payments. They’re popular with income-focused investors, like retirees, who rely on these dividends to boost their income.

But how do you find the best dividend-paying stocks in India? This guide dives into the top 10 contenders and their dividend yields. Read along!

What Are Dividend Stocks?

Dividend stocks are shares companies distribute as part of their earnings to shareholders in cash payments, known as dividends. These payments typically occur quarterly, though some companies pay monthly or annually.

When a company earns profits, its board of directors can choose to reinvest those earnings back into the business, hold them as cash reserves, or distribute a portion to shareholders as dividends. Once declared, dividends are paid on a per-share basis.

Also, many people get confused between dividend yield and payout ratio. The dividend yield is the yearly dividend payment represented as a percentage of the stock’s current price. On the other hand, the payout ratio indicates what percentage of a company’s earnings are being paid out as dividends.

Why Invest in Dividend Paying Stocks?

For many investors, dividend stocks are crucial to a well-rounded investment strategy. Here’s why you might consider adding dividend-paying stocks to your portfolio:

• Steady Income Stream: Dividend stocks provide regular cash payments, creating a reliable income source. This steady cash flow can be particularly attractive for retirees or those seeking to supplement their regular income. 
• Capital Appreciation: While these stocks may not offer explosive growth, they often provide steady share price increases over time. This combination of dividends and capital gains can lead to attractive total returns.
• Hedge Against Inflation: Companies that consistently raise their dividends can help investors keep pace with inflation. Growing dividend payments can help maintain your purchasing power over time as the cost of living increases.
• Flexibility: Dividend payments offer investors flexibility in how they use their returns. You can reinvest for growth, use the income for current expenses, or find a balance based on your financial needs and goals.

How to Choose the Best Dividend Paying Stocks?

To build a robust dividend portfolio, investors should look beyond the current payout and evaluate the overall health and prospects of the company. Here are a few factors to consider when choosing dividend stocks:

• Company Financials: Examine the company’s overall financial health. Look at metrics like revenue growth, profit margins, and debt levels. A company with strong financials is likelier to maintain and grow its dividend over time.
• Industry Trends: Consider the long-term prospects of the company’s industry. Industries facing significant headwinds may struggle to maintain dividend payments, while those in growing sectors may offer better growth potential.
• Dividend History: A long history of consistent dividend payments, primarily through economic downturns, is a positive sign. Businesses that have maintained or increased dividends during tough times demonstrate a strong commitment to shareholder returns.

The Top 10 Highest Dividend Paying Stocks in India

For investors seeking steady income from the Indian stock market, dividend-paying stocks can be an excellent choice. Here’s a list of India’s top 10 dividend-paying stocks, offering attractive yields and growth potential.

1. Bharat Petroleum Corporation Ltd (BPCL)

BPCL, a public sector undertaking in the oil and gas sector, operates three strategic refineries in Bina, Kochi, and Mumbai. Its diverse operations contribute to its strong financial performance.

• Dividend Yield: 6.70%
• PE Ratio: 4.97
• Performance: Net income growth of 28.05% yearly over the last 5 years

2. Chennai Petroleum Corporation Ltd (CPCL)

CPCL, a subsidiary of Indian Oil Corporation, operates under the Ministry of Petroleum and Natural Gas. Its strategic location in Chennai contributes to its strong market position.

• Dividend Yield: 5.07%
• PE Ratio: 5.88
• Performance: Revenue growth of 9.93% yearly over the last 5 years

3. Coal India Ltd (CIL)

India’s Ministry of Coal manages CIL, the world’s largest government-owned coal producer. Its dominant position in the coal industry translates into strong financial metrics.

• Dividend Yield: 5.12%
• PE Ratio: 8.20
• Performance: Net profit margin of 24.82% and ROE of 55.32%

4. HCL Technologies Ltd

HCL Technologies, a multinational IT consulting company headquartered in Noida, has a rich history of innovation dating back to its founding by Shiv Nadar.

• Dividend Yield: 3.32%
• PE Ratio: 27.07
• Performance: Revenue growth of 12.67% yearly over the last 5 years

5. Hindustan Petroleum Corp Ltd (HPCL)

HPCL, a Mumbai-based public sector undertaking, is a key player in India’s petroleum and natural gas industry. As an Oil and Natural Gas Corporation subsidiary, it benefits from government backing while maintaining a competitive edge.

• Dividend Yield: 9.06%
• PE Ratio: 4.62
• Performance: Revenue growth of 9.51% yearly over the last 5 years

6. ICICI Securities Ltd

ICICI Securities offers various financial services, such as brokerage, investment banking, and financial product distribution, catering to retail and institutional clients.

• Dividend Yield: 3.75%
• PE Ratio: 14.72
• Performance: Revenue growth of 23.94% yearly over the last 5 years

7. Indian Oil Corporation Ltd (IOCL)

IOCL, a multinational oil and gas giant, is owned by the Indian government and overseen by the Ministry of Petroleum and Natural Gas. Its vast operations span the entire hydrocarbon value chain.

• Dividend Yield: 6.90%
• PE Ratio: 5.74
• Performance: Net income growth of 19.15% yearly over the last 5 years

8. Oil and Natural Gas Corporation Ltd (ONGC)

ONGC, a central public sector undertaking, is a key player in India’s oil and gas exploration and production sector. Its long history and government backing contribute to its stable market position.

• Dividend Yield: 3.80%
• PE Ratio: 8.24
• Performance: ROE of 12.13% and cash flow margin of 13.13%

9. UTI Asset Management Company Ltd

UTI AMC is a significant player in India’s asset management industry, with operations spanning portfolio management, venture fund management, and international fund marketing.

• Dividend Yield: 4.38%
• PE Ratio: 17.85
• Performance: Net income growth of 16.76% yearly over the last 5 years

10. Vedanta Ltd

Vedanta, a Mumbai-based multinational mining company, operates iron ore, gold, and aluminium mines across several Indian states. Its diversified portfolio provides resilience against market fluctuations.

• Dividend Yield: 6.44%
• PE Ratio: 40.22
• Performance: Revenue growth of 9.26% yearly over the last 5 years

The Top 10 Highest Dividend Paying Stocks in the US

Looking for a steady income from your investments? Dividend-paying stocks can be an excellent choice. Appreciate provides the best platform with competitive rates and user-friendly tools. Now, look at the list of the top 10 highest dividend-paying stocks in the US, offering attractive yields and growth potential. 

1. Altria Group (MO)

Altria, the leading tobacco manufacturer in the US, is navigating the changing landscape of smoking habits with a multi-pronged approach. While maintaining its strong position in traditional cigarettes, the company actively invests in cigarette alternatives and reduced-risk products. Altria’s ability to consistently price above the rate of decline in cigarette volume ensures continued revenue growth and dividend sustainability.

• Dividend Yield: 8.50%
• Payout Ratio: Not provided
• Performance: Trading 21% below fair value estimate

2. Verizon Communications (VZ)

As one of the largest telecom service providers in the US, Verizon is well-positioned to capitalise on the evolving wireless industry. Despite challenges in adding postpaid consumer wireless customers, the company has demonstrated robust wireless revenue growth through strategic price increases. The improving competitive balance in the industry is expected to boost profitability for major carriers like Verizon in the coming years.

• Dividend Yield: 6.42%
• Payout Ratio: 60% of 2023 cash flows
• Performance: Trading 24% below fair value estimate

3. Kinder Morgan (KMI)

Kinder Morgan, a major player in the energy infrastructure sector, boasts a diverse portfolio of assets spanning natural gas, natural gas liquids, oil, and liquefied natural gas. The company’s US gas pipeline business is particularly noteworthy. With growing opportunities from artificial intelligence and data centre demand, Kinder Morgan is well-positioned for future growth while maintaining a strong dividend.

• Dividend Yield: 5.71%
• Payout Ratio: Not provided
• Performance: Trading 10% below fair value estimate

4. Duke Energy (DUK)

As one of the largest regulated utilities in the United States, Duke Energy benefits from constructive regulatory environments and strong economic fundamentals in its key regions. The company’s focus on clean energy transition and grid modernisation provides a solid foundation for long-term growth, while its regulated business model offers stability and predictable cash flows.

• Dividend Yield: 4.08%
• Payout Ratio: 65% to 75% of earnings
• Performance: Trading 10% below fair value estimate

5. PNC Financial Services (PNC)

PNC Financial Services stands out as one of the larger regional banks in the US, with a well-diversified fee base. The company’s balance sheet is strategically positioned to navigate the current interest rate environment. PNC’s robust capital return strategy and solid financial footing make it an attractive option for dividend-seeking investors in the financial sector.

• Dividend Yield: 3.96%
• Payout Ratio: Not provided
• Performance: Trading 11% below fair value estimate

6. Medtronic (MDT)

As the world’s largest pure-play medical device manufacturer, Medtronic offers a diversified product portfolio targeting chronic diseases. The company’s position as a critical partner for hospitals and its focus on innovation and strategic acquisitions provide a strong foundation for future growth and dividend sustainability.

• Dividend Yield: 3.57%
• Payout Ratio: 60% to 70% of free cash flow
• Performance: Trading 31% below fair value estimate

7. Exxon Mobil (XOM)

Exxon Mobil, a global oil and gas industry leader, recently strengthened its position by acquiring Pioneer Natural Resources. This move aligns with the company’s hydrocarbon-focused strategy. Exxon’s efforts to reduce costs and optimise capital spending are expected to support its dividend payments, making it a good option for income-focused investors in the energy sector.

• Dividend Yield: 3.32%
• Payout Ratio: Not provided
• Performance: Trading 18% below fair value estimate

8. Johnson & Johnson (JNJ)

Johnson & Johnson, a diversified healthcare giant, maintains a strong market position with its broad revenue base and robust product pipeline. The company’s exceptional cash flow generation and wide economic moat provide a solid foundation for dividend growth. J&J’s recent strategy to resolve talc litigation is expected to mitigate a significant risk factor, potentially unlocking additional shareholder value.

• Dividend Yield: 3.28%
• Payout Ratio: Not provided
• Performance: Trading 11% below fair value estimate

9. Comcast (CMCSA)

Comcast, a leader in the telecom services industry, leverages its strong pricing power to drive steady growth in revenue per customer. While facing some uncertainty around its Peacock streaming service, the company’s strategy of maintaining modest customer losses while growing revenue has proven effective. Comcast’s consistent dividend growth since 2008 showcases its commitment to shareholder returns.

• Dividend Yield: 3.17%
• Payout Ratio: Not provided
• Performance: Trading 32% below fair value estimate

10. Starbucks (SBUX)

Starbucks, one of the world’s most recognisable restaurant brands, has built a wide economic moat through its strong brand identity and customer loyalty. The company’s ability to generate strong free cash flow supports its dividend payments and growth initiatives. Starbucks’ global expansion strategy and focus on digital innovation position it well for future growth in the competitive coffee market.

• Dividend Yield: 2.95%
• Payout Ratio: Targets 50% long-term
• Performance: Trading 21% below fair value estimate

How to Invest in Dividend Paying Stocks?

Now that you are aware of the highest dividend-paying stocks in India, here’s how you can start investing in them:

1. Open an account with Appreciate: Sign up and complete the KYC process.
2. Fund your account: Transfer money using net banking or UPI.
3. Place your order: Use Appreciate’s platform to buy your dividend stocks.
4. Monitor and reinvest: Keep track of your investments and consider reinvesting dividends for compound growth.

Benefits of Using Appreciate for Investing

Appreciate, the best stock market app offers a user-friendly platform for Indian investors to access domestic and US dividend-paying stocks, making it an excellent choice for building a diverse dividend portfolio. Here are a few more benefits of using Appreciate:

• User-friendly interface: Intuitive design makes it simple for beginners and experienced investors to navigate and trade.
• Low fees: A competitive pricing structure helps maximise your investment returns.
• Fractional investing: Buying partial shares allows for greater diversification, even with smaller investment amounts.
• Real-time market data: Access to up-to-date information helps make informed investment decisions.
• Research tools: Comprehensive analysis and screening tools to identify potential dividend stocks.
• Mobile app: Convenient trading on the go with a feature-rich mobile application.

Conclusion

Dividend-paying stocks offer a compelling investment opportunity for those seeking a balance of steady income and potential capital appreciation. However, when investing, it is important to look beyond high yields to factors such as payout ratios, dividend growth rates, and overall company financials.

For those ready to start or expand their dividend stock portfolio, Appreciate provides an excellent platform to access these top-performing Indian stocks. With its user-friendly interface, competitive rates, and tools tailored for the Indian market, Appreciate makes it easier for investors to build a robust dividend-focused portfolio.

Highest Dividend Paying Stocks – FAQs

What stock pays the highest dividend yield?

As of 2024, Altria Group Inc. (MO) often tops the list with a yield of around 9%, but yields can change frequently.

Which stock pays dividends monthly?

Realty Income Corporation (O), known as “The Monthly Dividend Company,” is a popular choice for monthly dividend payments.

Which S&P 500 stock gives the highest dividend?

Altria Group Inc. (MO) frequently offers the highest dividend yield among S&P 500 stocks.

Highest dividend-paying stocks in the last 10 years in the US

Consistently high-paying stocks include AT&T, ExxonMobil, and IBM, though exact rankings change over time.

High-yield dividend stocks in the US

Some high-yield dividend stocks in the US include Altria Group, MPLX LP, and Energy Transfer LP, which often yield above 7%.

High-yield dividend stocks on the NYSE

Some NYSE-listed high-yield stocks include AT&T, IBM, and Exxon Mobil.

Top 10 dividend-paying stocks in the US

The list of the top 10 dividend-paying stocks in the US changes, but it usually includes Altria, AT&T, ExxonMobil, Chevron, AbbVie, and IBM.

Highest dividend-paying stocks in the world

Global high-yield stocks include Exxon Mobil, Johnson & Johnson, Verizon Communications, and Altria Group MO.

Highest dividend-paying stocks in the US in 2024

As of 2024, top players include Altria Group, MPLX LP, and Energy Transfer LP, but always verify current data.

Monthly dividend stocks in the US

Besides Realty Income, STAG Industrial and Main Street Capital also offer monthly dividends.

Which are the top dividend yield stocks in the US?

Usually, the top yields are found in sectors like tobacco, energy, and REITs, but current data is always checked.

Is it compulsory for a company to give dividends to investors?

Paying dividends is optional and decided by the company’s board of directors.

How many times can a company announce a dividend?

Companies can announce dividends as often as they choose, typically quarterly, semi-annually, or annually.

What is the ex-date?

The ex-dividend date is when new stock buyers are no longer entitled to the upcoming dividend payment.

What is an interim dividend?

An interim dividend is a payment made before a company’s Annual General Meeting and final financial statements.