If you’re aiming for consistent income and long-term capital growth, dividend-paying stocks in India can be a smart addition to your portfolio. These stocks not only provide regular payouts but also offer the potential for reinvestment and compounding returns. By focusing on companies with solid financials and a history of dividend payments, you can build a reliable source of passive income while participating in India’s economic growth.
How We Selected These Dividend Stocks
Our selection process was guided by clear, investor-friendly criteria:
Dividend Yield: We focused on companies offering dividend yields above 2%, ensuring steady income generation.
Market Cap: Only firms with a market capitalization over $15 billion were included—providing an added layer of stability and proven track records.
Indian Markets: All selected stocks are listed on Indian stock exchanges, offering exposure to India’s growing and diverse economy.
Let’s explore the top picks for 2025.
The Best Dividend Stocks in India (2025)
| Company Name | Stock Symbol | Sector | Dividend Yield | Market Cap |
|---|---|---|---|---|
| Tata Consultancy Services Ltd | TCS | Information Technology | 3.6% | $146.5 B |
| Infosys Ltd | INFY | Information Technology | 2.7% | $77.329 B |
| ITC Ltd | ITC | Consumer Staples | 3.4% | $62.468 B |
| HCL Technologies Ltd | HCLTECH | Information Technology | 3.2% | $52.826 B |
| NTPC Ltd | NTPC | Utilities | 2.4% | $36.574 B |
| Oil and Natural Gas Corporation Ltd | ONGC | Energy | 5.5% | $32.151 B |
| Power Grid Corporation of India Ltd | POWERGRID | Utilities | 3.5% | $35.985 B |
| Coal India Ltd | COALINDIA | Energy | 7.9% | $28.786 B |
| Bajaj Auto Ltd | BAJAJ-AUTO | Consumer Discretionary | 2.4% | $28.161 B |
Last updated: June 10, 2025
Key Dividend Stocks to Watch
Tata Consultancy Services (TCS)
Sector: Information Technology | Dividend Yield: 3.6%
As India’s largest IT services company, TCS has a consistent track record of rewarding shareholders through dividends, backed by global revenue streams and strong margins.
Infosys Ltd (INFY)
Sector: Information Technology | Dividend Yield: 2.7%
A major player in digital services and consulting, Infosys offers regular dividends and robust financials, benefiting from the growing demand for digital transformation globally.
ITC Ltd (ITC)
Sector: Consumer Staples | Dividend Yield: 3.4%
A diversified conglomerate, ITC operates across FMCG, hospitality, packaging, and agriculture. Its strong cash flows make it one of India’s most reliable dividend payers.
Coal India Ltd (COALINDIA)
Sector: Energy | Dividend Yield: 7.9%
The world’s largest coal producer, Coal India is a high-yield dividend stock with a critical role in India’s energy supply chain.
Oil & Natural Gas Corporation Ltd (ONGC)
Sector: Energy | Dividend Yield: 5.5%
India’s largest oil and gas company, ONGC offers an attractive dividend yield, supported by stable government demand and energy security initiatives.
How to Screen for Dividend Stocks in India
Finding high-yield dividend stocks is easier than ever with platforms like Investing Pro. Here’s a quick guide:
- Use the Screener tool and select ‘National Stock Exchange of India.’
- Set filters for Dividend Yield > 2% and Market Cap > ₹15 billion.
- Review the list of qualifying companies sorted by yield and market cap.
This approach ensures you’re focusing on established companies with healthy payouts and lower risk profiles.
Frequently Asked Questions (FAQs)
1. What are dividend stocks?
Dividend stocks are shares of companies that pay out part of their profits to shareholders regularly—either quarterly or annually—offering investors a passive income stream.
2. Why invest in dividend stocks in India?
They provide stable income, hedge against inflation, and typically come from well-established companies with consistent earnings.
3. Which sectors in India offer the highest dividend yields?
Historically, sectors like Energy, Consumer Staples, and Utilities offer higher dividend yields due to stable cash flows.
4. How are dividends taxed in India?
Dividends above ₹5 lakh annually are taxed at applicable income tax rates. Dividend distribution tax (DDT) was abolished in 2020.
5. What should investors consider when selecting dividend stocks?
Focus on financial stability, dividend consistency, yield levels, payout ratios, and long-term growth potential.
Also Read: Best AI Stocks in India Right Now (2025): Top Indian Tech Companies
Build Wealth with Dividend Stocks
Dividend-paying stocks in India can be a powerful tool for building wealth. They offer the dual benefit of passive income and capital appreciation—especially when reinvested over time. By focusing on companies with strong fundamentals and consistent dividend history, investors can confidently grow their portfolios in 2025 and beyond.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
