Investing in high dividend stocks is one of the best ways to earn regular passive income while building long-term wealth. These stocks represent companies that consistently share a portion of their profits with shareholders, making them highly attractive for income-seeking investors.
In 2025, as the Indian stock market navigates through economic uncertainties, rising inflation, and foreign investor outflows, high dividend stocks in India for 2025 have emerged as a safe investment option for steady returns. Such companies not only offer consistent dividend payouts but also signal strong financial health and business stability.
For investors looking to generate regular income along with potential capital appreciation, these stocks can be a reliable addition to their portfolio. In this article, we will explore the Top 10 High Dividend Stocks in India for 2025, their performance, and key factors to consider before investing. Along with high dividend stocks, proper tax planning is essential to maximize your returns. Don’t miss our expert tips on Tax Planning Tips Before Financial Year End: What to Do Before March 31.
Overview of Contents
What is Dividend & Dividend Yield?
A dividend is a portion of a company’s profit that is distributed to its shareholders as a reward for their investment in the company. It is one of the most attractive ways for investors to earn regular passive income from their equity holdings. Companies that consistently pay dividends are usually financially stable and profitable, making them a reliable choice for long-term investors.
Dividends are typically paid in cash or additional shares at regular intervals, such as quarterly, half-yearly, or annually. The primary objective of dividends is to share the company’s profits with its shareholders while also signaling strong financial health and business stability.
For investors, dividend payouts not only provide steady income but also act as a buffer during volatile market conditions. Investing in dividend-paying stocks can help build wealth over time through both regular income and capital appreciation, making them a popular choice for those seeking low-risk investment options.
Top 10 High Dividend Stocks in India for 2025
Investing in high dividend stocks can provide regular income, but combining it with the right withdrawal strategy is key for a secure retirement. Learn how SIP & SWP can help you achieve your financial goals in our guide: The Truth About SIP & SWP: Avoiding Common Mistakes for a Secure Retirement.
| Stock Name | Dividend Yield | Price (₹) | Market Cap | PE | Sector |
|---|---|---|---|---|---|
| Vedanta Ltd | 10.87% | 404.55 | Large Cap | 12.12 | Basic Materials |
| Jaysynth Orgochem Ltd | 6.78% | 21.69 | Small Cap | 18.91 | Basic Materials |
| Twenty First Century Management Services Ltd | 5.82% | 70.01 | Small Cap | 1.81 | Financial Services |
| MPS Ltd | 4.9% | 2,439.75 | Small Cap | 31.52 | Consumer Cyclical |
| D-Link India Ltd | 4.75% | 381.40 | Small Cap | 13.73 | Technology |
| Hindustan Zinc Ltd | 4.45% | 411.75 | Large Cap | 18.33 | Basic Materials |
| Steel City Securities Ltd | 4.04% | 97.22 | Small Cap | 8.23 | Financial Services |
| Sundaram Finance Holdings Ltd | 3.86% | 255.90 | Small Cap | 10.01 | Financial Services |
| National Aluminium Company Ltd | 3.28% | 179.36 | Mid Cap | 7.91 | Basic Materials |
| Tech Mahindra Ltd | 3.2% | 1,588.25 | Large Cap | 37.66 | Technology |
1. Vedanta
- Market Cap: ₹1,54,363 Cr.
- Current Price: ₹395
- 52-Week High/Low: ₹527 / ₹250
- Stock P/E: 13.0
- Book Value: ₹95.9
- Dividend Yield: 10.87%
- ROCE: 20.9%
- ROE: 10.5%
- Face Value: ₹1.00
Strengths
- ✅ Consistent Dividend Payout: Vedanta boasts an impressive dividend payout of 235%, making it one of the top dividend-paying companies in the sector.
- ✅ Strong Profit Growth: The company reported a 76.2% growth in quarterly profits in the latest quarter.
Weaknesses
- ❌ 100% Promoter Pledge: The entire promoter holding is pledged, raising concerns about financial stability.
- ❌ Declining Promoter Holding: Promoter holding has dropped by 13.3% over the last three years, indicating a lack of confidence.
Peer Comparison
| Company | CMP (₹) | P/E | Market Cap (Cr.) | Dividend Yield (%) | ROCE (%) |
|---|---|---|---|---|---|
| Coal India | 369 | 6.6 | 2,27,620 | 6.90 | 63.59 |
| Vedanta | 395 | 13.0 | 1,54,363 | 11.02 | 20.91 |
| NMDC | 628 | 47.0 | 54,931 | 3.87 | 30.91 |
| Lloyds Metals | 102 | 135.0 | 53,428 | 0.10 | 78.27 |
| KIOCL | 231 | — | 14,090 | 0.00 | -2.18 |
Quarterly Performance
| Quarter | Sales (₹ Cr.) | Operating Profit (₹ Cr.) | Net Profit (₹ Cr.) | OPM (%) |
|---|---|---|---|---|
| Dec 2023 | 35,541 | 8,531 | 2,868 | 24% |
| Mar 2024 | 35,509 | 8,768 | 2,275 | 25% |
| Jun 2024 | 35,764 | 9,945 | 5,095 | 28% |
| Sep 2024 | 37,634 | 9,828 | 5,603 | 26% |
| Dec 2024 | 39,115 | 11,104 | 4,876 | 28% |
Vedanta’s financial performance showcases consistent revenue growth and strong profitability. However, the high debt burden and promoter pledge remain key concerns for investors.
Should You Invest?
Vedanta can be a good dividend stock for income-seeking investors, but the pledged promoter shares and high debt levels make it a risky bet in the long term. A careful watch on promoter actions and debt reduction will be crucial before making investment decisions.
2. Jaysynth Orgochem Ltd: Stock Analysis and Market Overview
Jaysynth Orgochem Ltd operates in the Dyes and Pigments sector under the Chemicals industry. The company has a market capitalization of ₹287 Cr. with a current stock price of ₹21.3.
Key Financial Highlights
- Market Cap: ₹287 Cr.
- Current Price: ₹21.3
- 52 Week High/Low: ₹29.2 / ₹7.05
- Stock P/E: 18.8
- Book Value: ₹8.31
- Dividend Yield: 0.24%
- ROCE (Return on Capital Employed): 11.8%
- ROE (Return on Equity): 12.1%
- Face Value: ₹1.00
| Pros | Cons |
| Impressive profit growth of 47.2% CAGR over the last 5 years. | Stock is currently trading at 2.56 times its book value. |
| Increasing working capital days from 25.2 days to 137 days indicates operational inefficiency. | |
| The company might be capitalizing interest costs which could affect profitability. |
Quarterly Results (Sep 2024)
- Sales: ₹60.96 Cr.
- Operating Profit: ₹7.26 Cr.
- Net Profit: ₹5.93 Cr.
- EPS: ₹0.44
- OPM %: 11.91%
Profit Growth: Over the past 5 years, the company has delivered consistent growth with profits rising from ₹2 Cr. in 2023 to ₹15 Cr. in TTM (Trailing Twelve Months).
Shareholding Pattern (Sep 2024)
- Promoters: 63.84%
- Public: 36.16%
Jaysynth Orgochem Ltd has demonstrated remarkable profit growth and steady financial performance. However, investors should be cautious about the rising working capital days and high stock valuation. The stock could be a good long-term bet if operational efficiencies improve and debt levels are managed effectively.
3. Twenty First Century Management Services Ltd
Incorporated in 1986, Twentyfirst Century Management Services Ltd is engaged in investments in the Capital Market and Futures & Options segment. The company operates by deploying its own surplus funds in equity and derivative segments without any registration or license required under the RBI. However, the company is in the process of applying for an NBFC license. It has a wholly owned subsidiary, Twentyfirst Century Shares & Securities Limited, which is also involved in capital market and derivative trading activities.
The company offers various services, including deploying investible surplus funds in the capital market, acting as intermediaries in financial markets, assisting corporates in mobilization and deployment of resources, and trying to become a trading member of the National Stock Exchange of India through its subsidiary.
Additionally, the company signed a rental agreement with Lubricants and Allied Products Manufacturing Company Private Limited, Mumbai, to lease office premises from April 1, 2022, to March 31, 2023, at a monthly rent not exceeding Rs. 23,000. In FY21, the company did not generate any revenue from operations and faced losses of approximately -40% from the cash segment and -60% from the derivative segment.
However, it managed to generate profits through the sale of shares in the cash segment via its subsidiary. The company’s financial performance shows a reduction in debt, a good dividend yield of 3.5%, and impressive profit growth of 49.2% CAGR over the last five years. It also boasts a strong return on equity (ROE) of 87% in the previous year. However, the company faces challenges such as high debtors with 162 days of outstanding payments and increased working capital days from 173 to 354 days. Despite these challenges, the stock is trading at 0.79 times its book value and has shown a remarkable price CAGR of 47% in the last year.
4. MPS Ltd
MPS Ltd, a B2B learning and platform solutions company, provides content, platform, and eLearning solutions for corporates, education, and research sectors. Incorporated in 1970, MPS operates across 15 countries with over 2,700 professionals. Its business is divided into three segments: Content Solutions (53% revenue share in Q1FY24) offering content creation and digital transformation, Platform Solutions (23%) providing SaaS-based content lifecycle platforms, and eLearning Solutions (24%) delivering custom eLearning, gamification, and mobile learning.
The USA contributes 57% of its revenue, followed by Europe (35%) and ROW (8%). The company has acquired eight businesses in the last decade and completed a buyback of 9 lakh shares at ₹900 per share in FY22. MPS targets ₹1,500 crore in revenue by FY28, maintaining a healthy dividend payout and strong ROE of 26%. However, the stock trades at 8.91 times its book value with a modest sales growth of 8.51% over the past five years.
5. D-Link India Ltd
D-Link (India) Ltd is a leading player in marketing and distributing networking products across India. Its diverse portfolio includes routers, switches, wireless devices, surveillance systems, and network security solutions. The company holds a 30% market share in switches and 40% in wireless LAN products. It operates through a robust distribution network with 15,000+ resellers and multiple warehouses. D-Link introduced AI-based EAGLE PRO routers and enterprise solutions in FY24 to meet growing digital demands. The company serves consumers, enterprises, and government sectors, with 99.9% of its revenue coming from domestic sales.
6. Hindustan Zinc Ltd
Hindustan Zinc Ltd, founded in 1966, is the world’s 2nd largest integrated Zinc producer and 3rd largest Silver producer. It holds ~75% market share in India’s Zinc market, with operations across Rajasthan. The company is self-sufficient in power and focuses on green energy. In FY24, it produced 1079 kt mined metal and 746 MT silver. For FY25, it expects higher metal production and plans a demerger to unlock business value.
7. Steel City Securities Ltd
Incorporated in 1995, Steel City Securities Ltd provides stock broking and e-governance services across Tamil Nadu, Karnataka, Orissa, Chhattisgarh, and Maharashtra. It offers trading platforms for Capital Market, Futures & Options, Commodities, and Currency Derivatives through NSE, BSE, MCX, MSE, and NCDEX. The company is also a depository participant of NSDL and CDSL, distributing Mutual Funds, Bonds, Credit Cards, IPOs, and Insurance products. With a PAN India presence, it operates through 70+ owned branches, 16,000+ franchises, and serves 3+ lakh retail clients.
It offers support services like technical analysis, pension schemes, loans, and e-governance products. In FY22, stock broking and DP operations contributed ~67% of revenue, while e-governance operations accounted for ~33%. The company acquired shares of Steel City Financial Services Pvt. Ltd in August 2023. It has a market cap of ₹138 Cr, with a stock price of ₹91.1, P/E of 7.40, and a dividend yield of 3.3%.
8. Sundaram Finance Holdings Ltd
Sundaram Finance Holdings Ltd, primarily engaged in investments, business processing, and support services, generates most of its income from dividends of automotive sector portfolio companies. It holds investments in 19 companies, including Axles India Ltd, Wheels India Ltd, and Sundaram Clayton Ltd. The company operates BPO services through its wholly-owned subsidiary Sundaram Business Services Ltd, offering outsourcing services to domestic and international clients. It recently acquired a 7.71% stake in Brakes India Pvt Ltd for ₹350 crores and approved additional investments in Mind S.r.l., Italy. The company has a market cap of ₹5,775 Cr, a stock price of ₹260, and a dividend yield of 2.95%.
9. National Aluminium Company Ltd
Why Should You Invest in High Dividend Stocks?
Investing in high dividend stocks can offer several benefits for both small and large investors. Here’s why they can be a smart choice:
Stable Income Source
High dividend stocks provide a regular and reliable source of income, making them ideal for retirees or those looking for consistent cash flow. Unlike stock price appreciation, which is unpredictable, dividends offer a fixed payout at regular intervals.
Better than Fixed Deposits (2025 Comparison)
With fixed deposit interest rates ranging between 5-7% in India, high dividend stocks can offer better returns along with capital appreciation. Additionally, dividend income has the potential to rise over time as companies increase their payouts, unlike fixed deposits where the interest rate remains fixed.
Low-Risk Long-Term Investment
Blue-chip companies with a history of paying high dividends are often financially stable and less volatile. These stocks are usually from sectors like utilities, FMCG, and banking, making them a safer option during market downturns.
How to Choose High Dividend Stocks?
Choosing high dividend stocks requires careful evaluation of various financial and qualitative factors. Here’s how you can identify the best options:
Dividend Yield (%): Look for companies with an attractive dividend yield. A higher yield indicates better returns, but extremely high yields may signal underlying business issues.
Consistent Dividend History: Companies with a track record of paying regular dividends over several years showcase financial stability and shareholder commitment.
PE Ratio: A low or reasonable price-to-earnings (PE) ratio often indicates that the stock is fairly valued or undervalued, making it a potentially good investment.
Debt-to-Equity Ratio: Lower debt-to-equity ratios are preferable, as companies with less debt have more flexibility to maintain dividend payouts during tough economic times.
Industry Outlook: Consider the long-term growth prospects of the industry. Sectors like utilities, pharmaceuticals, and FMCG often offer stable dividends due to consistent demand.
By analyzing these factors, investors can select high dividend stocks that offer both steady income and long-term capital appreciation.
Advantages & Risks of High Dividend Stocks
| Investor Goal | Pros | Cons |
|---|---|---|
| Income-Focused | Consistent cash flow, stability in portfolio. | Taxable income, possible reduction of dividends. |
| Growth-Focused | Reinvestment potential, capital appreciation possibility. | Slower potential growth than non-dividend stocks, sector concentration risks. |
| Risk-Averse | Lower volatility, more established companies. | Sensitivity to interest rates, payout risk during economic hardship. |
Looking to explore more ways to earn from the stock market? Check out our beginner-friendly guide on Top Ways to Make Money in the Stock Market: A Beginner’s Guide
FAQs
What are high dividend stocks?
High dividend stocks are shares of companies that regularly distribute a significant portion of their profits as dividends to shareholders.
Which are the top high dividend stocks in India?
Some top high dividend-paying stocks in India are Vedanta Ltd, Coal India Ltd, Hindustan Zinc Ltd, ONGC, Power Grid Corporation of India Ltd, and Indian Oil Corporation Ltd.
Why should you invest in high dividend stocks?
High dividend stocks offer a steady income stream and are ideal for long-term wealth creation.
Are high dividend stocks a good investment?
Yes, they are considered good for investors seeking regular income along with potential capital appreciation.
How to select the best high dividend stocks in India?
Choose companies with a consistent dividend payout history, strong fundamentals, and stable business performance.