Best Dividend Stocks in India 

Dividend Yield Criteria: We focused on stocks with a dividend yield of over 2%, ensuring steady income generation for investors seeking passive income.

Market Cap Assessment: Only companies with a market capitalization of over $1 billion were considered. This filter ensures we select well-established, financially stable firms with a proven track record in the market.

Stock Market Focus: The stocks selected are exclusively listed on Indian stock markets, offering exposure to India’s diverse and growing economy.

Sector: Information Technology
Dividend Yield: 2.2%
Market Cap: $88.83B

Infosys Ltd is a global leader in technology services and consulting. The company provides a wide range of digital transformation solutions, including software development, cloud computing, and business process outsourcing, catering to industries such as finance, manufacturing, and healthcare.

Sector: Consumer Staples
Dividend Yield: 2.9%
Market Cap: $70.88B

ITC Ltd is a diversified conglomerate with businesses across fast-moving consumer goods (FMCG), hotels, paperboards, packaging, and agri-business. The company is one of India’s leading FMCG marketers with a strong presence in the tobacco, food, and personal care sectors.

Sector: Information Technology
Dividend Yield: 2.9%
Market Cap: $58.86B

HCL Technologies Ltd is a multinational IT services and consulting company. It offers a wide range of services, including software development, enterprise IT solutions, and business process management, primarily to large enterprises across the globe.

Sector: Utilities
Dividend Yield: 2%
Market Cap: $45.701 B

NTPC is an Indian central Public Sector Undertaking under the ownership of the Ministry of Power and the Government of India. It is among the country’s leading power generation company, engaged primarily in the generation and sale of bulk power to state power utilities.

Sector: Energy
Dividend Yield: 4.7%
Market Cap: $39.15B

Oil and Natural Gas Corporation Ltd is India’s largest oil and gas exploration and production company. It plays a critical role in the country’s energy security, exploring and extracting crude oil and natural gas from both onshore and offshore fields.

Sector: Utilities
Dividend Yield: 3.7%
Market Cap: $34.86B

Vedanta Ltd is a globally diversified natural resources company. It operates in sectors such as oil and gas, zinc, lead, silver, copper, iron ore, and aluminum. The company is known for its extensive operations in mining and metals.

Sector: Energy
Dividend Yield: 9.7%
Market Cap: $30.97B

Coal India is the largest government-owned coal producer in the world. It is engaged in the production and marketing of coal and coal products in India. It accounts for nearly 82% of the total coal production in India, and lies under the administrative control of the Ministry of Coal, Government of India.

Sector: Energy
Dividend Yield: 10.7%
Market Cap: $22.91B

Indian Oil Corporation is an Indian multinational oil and gas company, and the largest government-owned oil producer in India. As a diversified and integrated energy major, IndianOil spans across oil, gas, petrochemicals, and alternative energy sources.

Sector: Materials
Dividend Yield: 10%
Market Cap: $21.18B

Vedanta Ltd is a globally diversified natural resources company. It operates in sectors such as oil and gas, zinc, lead, silver, copper, iron ore, and aluminum. The company is known for its extensive operations in mining and metals.

You can screen the best dividend stocks in India easily using Investing Pro. Here are the steps:

• Click on the Screener tool.
• Select ‘National Stock Exchange of India’ from the ‘Stock Exchange’ dropdown list.

• Add a filter for ‘Dividend Yield’ set the threshold to greater than 2%.
• Add a filter for ‘Market Cap’ set the threshold to greater than 15 billion.

• You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.

1. What are dividend stocks?

Dividend stocks are shares of companies that distribute a portion of their earnings to shareholders in the form of dividends. These payments are typically made on a regular basis, such as quarterly or annually, and provide investors with a passive income stream.

2. Why invest in dividend stocks in India?

Dividend stocks in India offer investors a stable income source, often from well-established companies with consistent earnings. These stocks can provide long-term growth, financial security, and help balance out volatility in a portfolio.

3. What sectors in India offer the highest dividend yields?

Traditionally, sectors like Energy, Materials, and Consumer Staples in India have higher dividend yields. Companies in these sectors often have stable cash flows and prioritize returning capital to shareholders.

4. How are dividends taxed in India?

In India, dividends are taxed in the hands of shareholders. Dividends exceeding ₹5 lakh are subject to tax at applicable income tax rates, and a dividend distribution tax (DDT) is no longer applicable as of 2020.

5. How to choose dividend stocks in India?

Look for companies with strong financial health, consistent profit growth, and a history of paying dividends. Additionally, consider the dividend yield, payout ratio, and the company’s long-term growth prospects when selecting dividend stocks.