Many investors prefer to invest in stocks that pay high dividends because they provide extra income. Investors can opt for these stocks for regular dividend payments. Additionally, investing in India’s top dividend-paying stocks can offer a steady income and indicate that the company is financially stable. In this blog, we will explore the highest dividend-paying stocks in January 2025, ranked by their dividend yield.
Name | Market Cap | Dividend Yield | 1Y Return | 5Y CAGR |
Chennai Petroleum Corporation Ltd | 8,867.92 | 9.24 | -12.74 | 39.68 |
Indian Oil Corporation Ltd | 1,95,440.22 | 8.46 | 7.98 | 10.23 |
Bharat Petroleum Corporation Ltd | 1,26,804.95 | 7.08 | 29.32 | 4.1 |
Coal India Ltd | 2,37,182.46 | 6.63 | 5.04 | 14.09 |
Vedanta Ltd | 1,80,576.68 | 6.08 | 76.58 | 25.56 |
Oil and Natural Gas Corporation Ltd | 3,00,891.91 | 5.12 | 15.24 | 13.65 |
Hindustan Petroleum Corp Ltd | 87,930.77 | 5.09 | 61.21 | 18.73 |
Great Eastern Shipping Company Ltd | 13,855.17 | 4.51 | -2.71 | 26.42 |
Gujarat Pipavav Port Ltd | 8,709.72 | 4.05 | 21.04 | 16.13 |
UTI Asset Management Company Ltd | 15,735.85 | 3.8 | 44.94 | – |
Note: The above stocks have been selected from the Nifty 500 universe and sorted based on high dividend yield stocks as of December 26, 2024.
Chennai Petroleum Corporation Limited specialises in refining crude oil to produce and supply various petroleum products. It is also involved in manufacturing and selling lubricating oil additives.
The company reported a revenue of ₹14,424.86 crore in Q2 FY24, compared to ₹20,361.17 crore in Q1 FY24, reflecting a sequential decline. The company’s net profit turned negative in Q2 FY24, recording a loss of ₹629.49 crore, as opposed to a profit of ₹342.60 crore in the previous quarter.
Key Metrics:
Indian Oil Corporation Ltd (IOCL), a Maharatna company under the Government of India, operates across the entire hydrocarbon value chain. Its activities include refining, pipeline transportation, marketing petroleum products, research and development, exploration and production, and marketing natural gas and petrochemicals.
For the quarter ending September 2024, Indian Oil Corporation Ltd (IOCL) reported revenue of ₹1,95,148.94 crore, compared to ₹2,15,988.76 crore in the previous quarter (June 2024). The net profit for September 2024 stood at ₹180.01 crore, a significant drop from ₹2,643.18 crore recorded in June 2024.
Key Metrics:
Bharat Petroleum Corporation is a government-owned company involved in refining crude oil and selling petroleum products.
In the quarter ending September 2024, the company recorded revenue of ₹1,17,951.69 crore, compared to ₹1,28,103.36 crore in the previous quarter. Net profit for the September quarter stood at ₹2,397.23 crore, down from ₹3,014.77 crore in the June quarter. The company’s cumulative net profit for the fiscal year reached ₹26,673.50 crore.
Key Metrics:
Coal India Ltd focuses on mining and producing coal, along with operating coal washeries. Its main customers are the power and steel industries, with additional consumers including cement, fertilisers, and brick kilns.
In the financial results for Coal India Ltd, the revenue for Q2 FY24 stood at ₹315.02 crore, compared to ₹389.71 crore in Q1 FY24, and totalled ₹1,516.38 crore for the fiscal year so far. The company reported a significant net profit of ₹4,133.97 crore in Q2 FY24, a notable increase from ₹87.46 crore in the previous quarter, contributing to a cumulative net profit of ₹15,766.83 crore for FY23-24.
Key Metrics:
Vedanta Ltd is a large natural resource company involved in finding, extracting, and processing minerals and oil & gas. The company explores, produces, and sells products like zinc, lead, silver, copper, aluminum, iron ore, and oil & gas. It operates in countries such as India, South Africa, Namibia, Ireland, Liberia, and the UAE.
In the financial results for Vedanta Ltd, the company reported a revenue of ₹18,288 crore for September 2024, up from ₹16,715 crore in June 2024. For the FY 2023-24, the revenue stood at ₹70,757 crore. The net profit for September 2024 was ₹10,553 crore, significantly higher than the ₹4,183 crore in June 2024. However, the net profit for FY23-24 was ₹6,623 crore, showing a decrease compared to the quarterly figures.
Key Metrics:
A dividend is a payment made by a company to its shareholders as a reward. This payment can be in the form of cash or other assets. The company’s board of directors decides on the dividend amount, but it needs to be approved by the shareholders. While paying dividends is not mandatory, they are usually given from the company’s profits.
To understand the best dividend stocks in India, it’s important to know about the dividend yield, which is the income an investor earns relative to the current stock price. It’s calculated using the formula:
Dividend Yield = (Annual Dividend / Share Price) x 100
Investors look for high dividend-paying stocks, which offer higher yields than the average. These stocks provide a reliable income stream, which investors may reinvest for better returns or use for long-term goals like retirement. When choosing high dividend-paying stocks, it’s important to consider their ability to maintain or grow dividend payments, ensuring a consistent income and share price appreciation.
Investing in dividend-paying stocks can be a smart way to grow wealth over the long term. These stocks offer consistent income while also having the potential for price growth. However, it’s important to thoroughly research and align your investment choices with your financial objectives before making any decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 29, 2024, 9:22 AM IST
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