Best Dividend-Paying Stocks in December 2025: Vedanta, Castrol India, REC Ltd, and More

December 2025 brings attractive opportunities for income-focused investors looking to enhance their portfolio with high-dividend stocks. From metals and mining giants like Vedanta to resilient companies like REC Ltd., these stocks offer consistent payouts backed by strong fundamentals. 

Whether you are a seasoned investor or just starting, holding these companies in your demat account can provide regular dividend income while benefiting from long-term growth potential. Let’s explore the top dividend-paying stocks the upcoming month.

Top 5 Dividend-Paying Stocks in December 2025 Based on Their Dividend Yield 

Overview of Top Dividend-Paying Stocks for December 2025

Vedanta Ltd

Vedanta pays dividends frequently through multiple interim payouts each year. In the last 12 months, it distributed about ₹31.50–32.00 per share. At times, the company's payout ratio has exceeded 100%, meaning it pays more in dividends than it earns sometimes. This aggressive strategy highlights the management’s confidence in Vedanta's cash-generation ability.

• ROE: 31.28%
• ROCE: 29.11%

Coal India

Coal India offers dividend yields that are above the market average. Over the past year, it has declared dividends totaling approximately ₹26.50–₹43.00 per share. Its payout ratio remains generally sustainable at around 63%, indicating dividends are well supported by earnings. 

• ROE: 38.53%
• ROCE: 24.71%

Castrol India

Castrol is virtually debt-free, with a near-zero debt-to-equity ratio and strong profitability metrics. This gives it resilience across different economic cycles. The company has a long record of rewarding shareholders through regular and occasional special dividends. Its historical dividend payout ratio of ~101–138% reflects a strong commitment to returning value to investors. 

• ROE: 42.15%
• ROCE: 53.57%

Hindustan Zinc 

Hindustan Zinc is supported by strong cash flows and large reserves. Its has an aggressive payout policy that includes large and special dividends, such as the ₹75 per share payout in FY23. 

As India’s dominant zinc-lead-silver producer, with over 75% market share and global leadership in zinc and silver output, HZL’s scale and profitability reinforce its ability to maintain high dividends.

• ROE: 72.60%
• ROCE: 62.89%

REC Ltd. 

REC is renowned for its robust dividend payouts, with a Trailing Twelve Months (TTM) dividend of about ₹19.70 per share. The company often distributes dividends 4–6 times annually, ensuring regular income for shareholders. 

With a healthy payout ratio around 30%, REC’s dividends are sustainably supported by earnings, reflecting consistent profitability and a shareholder-friendly approach. This makes it attractive for income-focused investors.

• ROE: 21.50%
• ROCE: 3.51%

Top 5 Dividend-Paying Stocks in December 2025 Based on PE Ratio

Read more: EMI Calculator: Here is How You Can Save ₹80000 By Foreclosing A ₹8 Lakh Loan While Holding a ₹5 Lakh Fixed Deposit.

Conclusion

Investing in high-dividend stocks like Vedanta, Hindustan Zinc, Castrol India, Coal India, and REC Ltd. can help generate steady income while keeping your portfolio robust. By carefully selecting such stocks and holding them in a demat account, investors can enjoy frequent payouts and potential capital appreciation. 

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 the securities market are subject to market risks. Read all the related documents carefully before investing.