Discover the best dividend stocks in India for 2025, 2024, and long term. Explore all-time best picks, monthly payers & passive income ideas in India.
Introduction
Dividend investing is a popular strategy among Indian investors looking for steady income and wealth growth. In this article, we’ll explore the best dividend stocks in India, including the top picks for 2024 and 2025, long-term options, monthly-paying stocks, and more.
Best Dividend Stocks in India 2025
Why Dividend Investing Is Trending in 2025
Dividend investing has seen a sharp rise in popularity in 2025, especially among investors who value steady income and low-risk opportunities. With the market showing signs of stability and companies posting consistent earnings, dividend stocks have become a smart way to build passive income without chasing volatility.
What makes the best dividend stocks in India 2025 stand out is their ability to deliver consistent returns, even when the broader market fluctuates. These stocks offer a dual benefit: regular income in the form of dividends and the potential for capital appreciation. For long-term and conservative investors, dividend stocks are now more than just an income tool—they’re a strategy for financial independence.
Top Picks – Best Dividend Stocks in India 2025
Below are some of the best dividend-paying stocks in India for 2025, selected based on their dividend yield, payout consistency, and overall financial health:
| Stock | Dividend Yield (%) | Payout Ratio (%) | Dividend Consistency (Years) |
|---|---|---|---|
| HDFC Bank | 1.3% | 20% | 15+ years |
| Coal India | 10.2% | 70% | 10+ years |
| ITC Ltd. | 4.8% | 85% | 20+ years |
| NTPC | 5.4% | 50% | 15+ years |
| Power Grid Corp. | 5.9% | 45% | 12+ years |
HDFC Bank
Known for its financial strength and robust governance, HDFC Bank remains a solid choice among the best dividend stocks in India 2025. Its moderate dividend yield is backed by strong and consistent profits, making it a great option for long-term investors.
Coal India
Coal India is a top pick if you’re looking for high dividend yield stocks. In fact, it’s among the highest paying dividend stocks in India, offering double-digit returns for years. It’s a popular choice for those seeking monthly or quarterly income streams.
ITC Ltd.
ITC has long been one of the all-time best dividend stocks in India. Despite being in a volatile sector, it has consistently rewarded shareholders. Its high payout ratio reflects a shareholder-friendly policy focused on income distribution.
NTPC
NTPC is a reliable choice in the power sector, offering stable dividends backed by government support and regulated revenues. It’s considered one of the best dividend stocks in India for passive income, especially for retirees.
Power Grid Corporation
Another gem in the utilities sector, Power Grid boasts a strong track record of dividend payouts and minimal volatility. Its consistent performance makes it a preferred pick for investors looking to balance safety and returns.
10 Best Dividend Stocks in India (2025)
1. Coal India Ltd
- Dividend Yield: ~6.5%
- Why Invest: Government-backed, strong cash flows, consistent high dividends.
- Ideal For: High passive income seekers.
2. ITC Ltd
- Dividend Yield: ~3-5%
- Why Invest: Reliable FMCG player, excellent track record, among the best dividend stocks in India for long term.
3. Power Grid Corporation of India
- Dividend Yield: ~5-6%
- Why Invest: Monopoly in power transmission, consistent returns, also offers InvIT for frequent payouts.
4. NTPC Ltd
- Dividend Yield: ~2.13%
- Why Invest: Leading power generator, regular dividend history, PSU with government backing.
5. HDFC Bank
- Dividend Yield: ~1-2%
- Why Invest: Not the highest yield, but strong fundamentals and growth make it a good long-term dividend play.
6. Hindustan Zinc
- Dividend Yield: ~6.5-8%
- Why Invest: High profitability and metal prices support generous payouts; top choice among 2024’s best.
7. Oil India Ltd
- Dividend Yield: ~3.11-5%
- Why Invest: Energy sector PSU, high dividend-paying, suitable for passive income.
8. REC Ltd (Rural Electrification Corporation)
- Dividend Yield: ~4.82%
- Why Invest: Strong PSU stock with great dividend history and stable earnings.
9. Infosys
- Dividend Yield: ~2-3%
- Why Invest: IT blue-chip with global presence, steady dividend growth, ideal for long-term wealth.
10. Tata Consultancy Services (TCS)
- Dividend Yield: ~2-4%
- Why Invest: High cash reserves, global dominance, and dependable dividend policy.
These companies represent the best dividend stocks in India in terms of both yield and sustainability. They’re suitable for various goals—whether you’re building a passive income stream or seeking long-term value with stable returns.
Top Dividend-Paying Stocks in India – 2025
Here’s a curated list of companies known for their attractive dividend yields:
| Company | Sector | Dividend Yield (%) | Notable Info |
|---|---|---|---|
| Taparia Tools Ltd | Industrial Tools | 220.87% | Exceptional yield; niche player in hand tools manufacturing. |
| Multibase India Ltd | Chemicals | 18.06% | Specializes in specialty polymers. |
| MSTC Ltd | Trading | 7.73% | Government enterprise in e-commerce and recycling. |
| Coal India Ltd | Metals & Mining | 6.50% | World’s largest coal producer. |
| Vedanta Ltd | Natural Resources | 10.37% | Diversified mining company. |
| Canara Bank | Banking | 16.57% | Major public sector bank. |
| NMDC Ltd | Mining | 10.99% | Leading iron ore producer. |
| Hindustan Zinc Ltd | Mining | 6.50% | Significant player in zinc production. |
| Oracle Financial Services | IT Services | Not specified | Announced ₹265 per share dividend in May 2025. |
| Page Industries | Apparel | Not specified | Declared ₹250 per share interim dividend. |
Note: Dividend yields are based on available data as of May 2025.
Best Dividend Stocks in India 2024 – Last Year’s Top Performers
Review of 2024 Dividend Performances
The year 2024 was a rewarding one for income-seeking investors. Many of the best dividend stocks in India 2024 delivered impressive returns, driven by strong balance sheets, healthy cash flows, and favorable sectoral tailwinds. While equity markets remained volatile in parts, companies that focused on consistent dividend payouts offered a cushion to investors looking for stability and passive income.
From FY2023–2024, sectors like energy, metals, and government-owned enterprises led the dividend charts. These companies maintained high payout ratios and, in some cases, even increased their dividends despite global headwinds. Investors who focused on the best dividend stocks in India 2024 not only secured regular income but also benefited from potential capital gains as these stocks outperformed broader indices.
Let’s take a closer look at the dividend trends and which companies stood out.
Key Names from 2024 List
Below are some of the top-performing dividend-paying companies of 2024 that consistently rewarded shareholders and earned their place among the best dividend stocks in India 2024:
Hindustan Zinc
Hindustan Zinc was a top pick in the best dividend stocks in India 2024 list, delivering an exceptional dividend yield that crossed double digits in certain quarters. As a metal and mining giant, its strong cash reserves allowed for frequent and high dividend payouts, especially in times of rising commodity prices.
REC Ltd (Rural Electrification Corporation)
A PSU favorite, REC Ltd made headlines in 2024 for its steady dividend track record. With its healthy financials and strong government backing, REC cemented its position as one of the best dividend stocks in India 2024 for long-term and conservative investors. Its payouts were both generous and timely.
GAIL (India) Ltd
India’s leading natural gas provider, GAIL, featured prominently in the best dividend stocks in India 2024 ranking. The company benefited from strong domestic demand and favorable pricing, allowing it to distribute solid dividends. Its consistent performance over the years has made it a preferred choice for passive income portfolios.
Oil India Ltd
Oil India Ltd closed 2024 with robust dividend declarations. As one of the highest paying dividend stocks in India, it capitalized on favorable oil prices and improved earnings. Investors seeking monthly or quarterly dividend income found Oil India a valuable addition to their portfolios.
In summary, the best dividend stocks in India 2024 were dominated by PSU companies and cash-rich sector leaders. These stocks not only provided high yields but also displayed reliability, which is key for any dividend-focused strategy. For investors looking to build a strong foundation for 2025 and beyond, reviewing the performance of 2024’s top players offers useful insights.
All Time Best Dividend Stocks in India
Long-Term Dividend Champions
When it comes to wealth building through steady income, the all time best dividend stocks in India have always been those that deliver consistent returns year after year. These are the companies that haven’t just declared occasional high dividends, but have maintained a disciplined approach for more than a decade—regardless of market cycles, economic slowdowns, or industry disruptions.
Some of the long-term dividend champions that feature on the list of all time best dividend stocks in India include:
- ITC – Known for its diversified portfolio and strong free cash flow, ITC has paid dividends consistently for over two decades.
- Hindustan Unilever (HUL) – As one of India’s most trusted FMCG brands, HUL has a legacy of regular dividend payments and steady growth.
- Infosys – This IT giant not only offers capital appreciation but has also built a strong reputation as one of the all time best dividend stocks in India, rewarding shareholders consistently.
- TCS (Tata Consultancy Services) – With stable earnings and strong financials, TCS has maintained a tradition of quarterly and annual dividends for many years.
These companies are favorites among investors who seek long-term passive income and financial predictability in their portfolios.
Consistency vs Yield
When identifying the all time best dividend stocks in India, many new investors make the mistake of chasing high dividend yields. But experienced investors know that consistency in dividends is a much better indicator of financial health than sporadic, high payouts.
A company offering a one-time high dividend may not repeat that performance. In contrast, a stock like Infosys or HUL, with decades of uninterrupted payouts—even if the yield is moderate—demonstrates:
- Strong governance
- Stable business model
- Long-term commitment to shareholder value
This is why all time best dividend stocks in India are often chosen not just for their yields, but for their reliability and track record. In fact, consistent dividend-paying companies tend to perform better during market downturns, offering both income stability and capital protection.
In conclusion, whether you’re a retiree looking for income or a young investor building a long-term portfolio, the all time best dividend stocks in India offer both peace of mind and solid returns. Prioritizing consistency over temporary highs is the key to successful dividend investing.
Best Dividend Stocks in India for Long Term
What Makes a Stock Ideal for Long-Term Dividend Investing?
When selecting the best dividend stocks in India for long term, investors aren’t just looking at today’s dividend yield. They are focused on long-term financial health, predictable cash flows, and the company’s commitment to rewarding shareholders over decades—not just quarters.
Here are the core traits that define the best dividend stocks in India for long term:
- Business Stability: These are companies with resilient business models that perform well across economic cycles. They usually belong to sectors like IT, FMCG, or utilities.
- Healthy Balance Sheet: A strong cash reserve and low debt make it easier for a company to keep paying dividends, even during slowdowns.
- Dividend Payout Policy: Companies that have a clearly defined dividend payout policy and a track record of honoring it are more trustworthy for long-term income investors.
By focusing on these criteria, you can identify companies that not only offer regular payouts but also grow their dividends over time, which helps beat inflation and generate real wealth.
Long-Term Dividend Growth Stocks
Let’s look at some of the best dividend stocks in India for long term that fit these criteria perfectly:
🟢 Infosys
Infosys is a tech leader that has consistently rewarded shareholders with growing dividends while expanding its business globally. The company offers a balanced mix of capital appreciation and regular dividend income, making it a top choice for long-term investors.
🟢 Hindustan Unilever (HUL)
While HUL offers a relatively low dividend yield, its unmatched consistency in dividend payments makes it one of the best dividend stocks in India for long term. Its strong brand portfolio and market dominance ensure dependable cash flow year after year.
🟢 Asian Paints
Asian Paints has steadily grown both its business and its dividend over time. While it prioritizes reinvestment for expansion, it still rewards shareholders with regular dividends—a combination ideal for long-term growth-oriented dividend investors.
Investing in the best dividend stocks in India for long term is not just about passive income—it’s about owning parts of companies that grow steadily, manage finances prudently, and prioritize shareholder value. These stocks form the bedrock of a dependable and inflation-beating portfolio.
Best Dividend Stocks in India for Passive Income
Creating a Passive Income Stream with Dividend Stocks
Building a steady source of income through the best dividend stocks in India for passive income is a goal many investors share. These stocks generate consistent payouts, allowing you to earn money regularly—without selling your investments.
But how do you begin?
How Much Capital Is Needed?
The answer depends on your desired income. If your goal is to earn ₹10,000 per month through dividends, and your chosen stocks yield 5% annually, you’d need a corpus of around ₹24 lakh.
👉 Formula:
₹10,000 x 12 = ₹1,20,000 yearly income
₹1,20,000 ÷ 5% yield = ₹24,00,000 required capital
Of course, you can start small and build over time. Many of the best dividend stocks in India for passive income also offer Dividend Reinvestment Plans (DRIPs), which automatically reinvest your dividends into more shares—compounding your wealth over time.
Compounding Through Reinvestment
By reinvesting the dividends instead of withdrawing them, you can exponentially grow your portfolio. Over 10–15 years, this strategy turns even modest monthly dividends into a powerful source of passive income.
Portfolio Example
To build a sustainable income stream, it’s essential to balance between high-yield stocks and blue-chip companies that offer consistent dividends.
Here’s a sample structure using some of the best dividend stocks in India for passive income:
| Stock Name | Dividend Yield (Approx.) | Type | Frequency |
|---|---|---|---|
| Coal India | 8–10% | High-Yield | Annual |
| Power Grid Corp | 5–6% | Defensive Blue-Chip | Quarterly |
| ITC Ltd | 4–5% | Growth + Yield | Annual |
| REC Ltd | 7–8% | High-Yield PSU | Annual |
| Infosys | 2–3% | Consistent Growth | Bi-Annual |
Strategy for Monthly/Quarterly Cash Flows
- Diversify payout months: Hold a mix of companies that pay at different times of the year to smooth income.
- Rebalance yearly: Replace underperformers and stay updated with dividend announcements.
- Use DRIPs early on: Reinvest dividends during your accumulation phase, then switch to cash withdrawals when you want the income.
Whether you’re retired or simply seeking financial independence, the best dividend stocks in India for passive income offer a reliable, low-maintenance way to earn money while you sleep.
Which Are the Highest Paying Dividend Stocks in India?
High-Yield Dividend Stocks (2024–2025)
If you’re searching for which are the highest paying dividend stocks in India, the latest data from FY2024–2025 offers some standout performers. These companies not only offered impressive dividend yields but also maintained strong fundamentals, making them attractive for both income and long-term stability.
Here are some of the top names that answer the question: which are the highest paying dividend stocks in India?
🔹 REC Ltd – Yield Over 10%
Rural Electrification Corporation (REC Ltd) continues to dominate the high-yield space. In FY2024, the company offered a dividend yield exceeding 10%, making it a top pick for dividend hunters. Supported by stable PSU operations and government focus on infrastructure, REC’s payouts are both generous and reliable.
🔹 Coal India – High and Consistent Payouts
Coal India has long been one of the best dividend stocks in India for those seeking passive income. With its massive cash reserves and monopolistic presence in coal production, it has a track record of paying out dividends twice a year with high yields—often around 8–10%.
🔹 Power Finance Corporation (PFC) – Strong Fundamentals + Yield
Another PSU giant, PFC, has delivered strong dividend returns thanks to consistent profitability and stable interest income from long-term infrastructure loans. With a dividend yield hovering between 7–9%, it ranks high among the highest paying dividend stocks in India.
Dividend Yield vs Payout Ratio
When evaluating which are the highest paying dividend stocks in India, don’t rely solely on yield. It’s important to also examine the dividend payout ratio—the percentage of net profits distributed as dividends.
| Metric | What It Means | Why It Matters |
|---|---|---|
| Dividend Yield | (Dividend ÷ Share Price) | Shows income generated for every ₹1 invested |
| Payout Ratio | (Dividend ÷ Net Income) | Measures sustainability of dividend payments |
- A very high yield with a very high payout ratio could mean the company is sacrificing growth or overextending.
- A moderate yield with a healthy payout ratio (30–60%) suggests sustainable, long-term income.
In conclusion, knowing which are the highest paying dividend stocks in India is just the beginning. A wise investor looks deeper into both return and reliability.
Which Stock Pays Monthly Dividends in India?
Monthly Dividend Paying Stocks – Are They Available?
Many investors wonder, which stock pays monthly dividends in India, especially those aiming to build a regular passive income stream. While this is a common feature in U.S. markets, monthly dividend-paying stocks are rare in India.
That said, India does offer a few options that provide monthly or very frequent payouts, but these typically come in the form of REITs (Real Estate Investment Trusts) or InvITs (Infrastructure Investment Trusts) rather than traditional equity stocks.
These instruments are regulated by SEBI and are designed to distribute the majority of their income to unit holders—often monthly or quarterly—making them excellent alternatives for regular income seekers.
Examples of Frequent Payouts
PowerGrid Infrastructure Investment Trust (PowerGrid InvIT)
PowerGrid InvIT is backed by Power Grid Corporation and holds operational power transmission assets. It has become popular among income-focused investors because of its frequent dividend and interest distributions, often on a monthly or bi-monthly basis.
India Grid Trust (IndiGrid InvIT)
IndiGrid InvIT is another excellent example if you’re searching which stock pays monthly dividends in India. While not a traditional stock, it offers regular distributions (monthly to quarterly) and owns revenue-generating power transmission assets.
Both these InvITs maintain high transparency, consistent cash flow, and strong sponsorship from government or AAA-rated entities, making them trustworthy for those seeking a steady monthly income.
Final Thoughts
So, which stock pays monthly dividends in India? While no traditional equity stock pays strictly every month, InvITs like PowerGrid InvIT and India Grid Trust come close by offering frequent, dependable payouts.
For investors focused on monthly cash flow, these can be an excellent addition to a diversified dividend portfolio that includes the best dividend stocks in India for passive income.
How to Invest in the Best Dividend Stocks in India?
Checklist for Picking Dividend Stocks
If you’re looking to generate steady income and long-term wealth, investing in the best dividend stocks in India can be a smart move. But not every high-yield stock is a good choice. Here’s a quick checklist to help you identify strong dividend-paying companies:
- Industry Outlook: Choose companies from stable and growing sectors. Industries like FMCG, power, IT, and utilities often have companies with consistent dividend histories.
- Profit Margins: Look at net and operating margins. Companies with healthy margins are better positioned to maintain or grow their dividend payouts even during economic slowdowns.
- History of Dividend Declarations: Consistency is key. The best dividend stocks in India usually have a 5–10+ year track record of paying dividends, even during tough market phases.
- Payout Ratio: This tells you how much of the company’s profit is returned to shareholders. A sustainable payout ratio (around 30–60%) is ideal for balancing growth and income.
- Free Cash Flow: Reliable dividend stocks often have strong, positive cash flow, which ensures they can pay dividends without borrowing or hurting operations.
By applying this checklist, you’ll improve your chances of investing in high-quality businesses that pay reliable dividends year after year.
Platforms for Tracking Dividends
Once you’ve selected the best dividend stocks in India, you’ll want to track their performance and upcoming dividend announcements. These tools and platforms can help:
- Moneycontrol – Offers dividend history, yield, and upcoming payout announcements.
- Screener.in – Free financial analysis tool where you can create custom screens to filter dividend-paying stocks based on yield, payout ratio, and other metrics.
- NSE India – Official site for updated dividend declarations and financial results.
- Brokerage Apps (Zerodha, Groww, Upstox, ICICI Direct, etc.) – Provide alerts, dividend credit details, and historical records for the stocks in your portfolio.
Final Tip
Investing in the best dividend stocks in India isn’t just about yield—it’s about finding businesses with strong fundamentals, growth potential, and a commitment to rewarding shareholders.
Expert Tips to Maximize Dividend Income
Investing in the best dividend stocks in India is just the first step. To truly maximize your income, you must understand the tax implications and decide whether to reinvest or withdraw your dividends. Here’s what experts suggest:
Taxation on Dividends in India
Since the Union Budget 2020, dividends received from Indian companies are taxed in the hands of investors. Here’s how it works:
- TDS (Tax Deducted at Source):
If your total dividend income exceeds ₹5,000 in a financial year, companies deduct 10% TDS before paying you. If your PAN is not linked or not updated, TDS may be higher. - Applicable Tax Slab:
Dividends are added to your annual income and taxed as per your individual slab rate. For example:- 5% if your income falls in the lowest slab,
- 30% (plus cess and surcharge) if you’re in the highest bracket.
- Advance Tax:
If you expect significant dividend income from the best dividend stocks in India, plan for advance tax payments to avoid interest penalties.
💡 Tip: Submit Form 15G/15H if your income is below the taxable limit to avoid TDS.
Reinvest or Withdraw?
Many investors wonder: Should I reinvest my dividends or use them as passive income?
- Reinvest for Compounding:
If you’re in the wealth-building phase (under 50 or not yet retired), reinvesting your dividends can significantly boost your returns over time. Compounding works best with high-quality, consistent dividend payers like Infosys, HUL, or TCS — some of the best dividend stocks in India. - Withdraw for Income:
If you’re retired or rely on dividend income for regular expenses, withdrawal may make sense. Choose high-yield, stable companies such as Coal India or Power Grid Corporation that offer quarterly dividends for regular cash flow.
🧠 Pro Tip: Use a dividend reinvestment strategy (DRIP) if your broker offers it, or manually buy more of the best dividend stocks in India after each payout.
By staying tax-smart and using the right reinvestment strategy, you can maximize your dividend returns and build a steady income stream.
Conclusion: Final Thoughts on Best Dividend Stocks in India
The best dividend stocks in India offer more than just regular income—they represent financial stability, resilience, and long-term value creation. Whether you’re an experienced investor or just starting out, these stocks can anchor your portfolio with consistent returns and peace of mind.
As we look ahead to 2025, understanding the performance of the best dividend stocks in India 2024, and evaluating all-time favorites like ITC, Infosys, and HUL, helps you make smarter, goal-driven investment decisions. From building a passive income stream to choosing reliable long-term bets, dividend investing remains a solid strategy.
Stay informed, stay patient, and let the best dividend stocks in India reward your discipline over time.
Frequently Asked Questions About Best Dividend Stocks in India
Which stock gives the highest dividend in India currently?
As of 2025, Coal India and Hindustan Zinc are among the best dividend stocks in India with the highest dividend yields. Their strong cash flows and government backing make them consistent high payers. However, it’s important to check the latest dividend yield data on reliable platforms like NSE or Moneycontrol.
Can I live off dividend income in India?
Yes, but it requires careful planning and substantial capital. To live off dividends in India, you need to invest in a diversified portfolio of the best dividend stocks in India for passive income. This includes a mix of high-yield and blue-chip stocks that offer steady payouts, ideally with some compounding through reinvestment.
Do PSU stocks offer better dividends?
Public Sector Undertaking (PSU) companies are known for higher dividend payouts, especially in sectors like energy, finance, and mining. Stocks like Coal India, REC, and NTPC are some of the best dividend stocks in India in the PSU segment, thanks to their consistent earnings and government mandates.
How often do Indian companies pay dividends?
Most Indian companies pay dividends quarterly or annually. Monthly dividends are rare, though some REITs and InvITs like PowerGrid InvIT and India Grid Trust offer more frequent payouts. For traditional equities, quarterly payouts are most common among the best dividend stocks in India.