“Highest Dividend Paying Stocks” are a type of stocks known for their relatively higher dividend yields compared to other stocks in the market. These stocks are typically issued by established companies that generate substantial profits and choose to distribute a portion of their profits to shareholders in the form of regular dividend payments. Investors who seek income-generating investments may find these stocks attractive as they can provide a consistent stream of income through dividends, which are usually paid out quarterly or annually. However, it’s important to note that dividend yield alone should not be the sole factor in making investment decisions, as it’s just one aspect of a stock’s overall performance and financial health. Factors such as the company’s financial stability, growth prospects, and market conditions should also be thoroughly considered before investing in high-dividend yield stocks. It’s crucial to conduct comprehensive research and seek advice from a qualified financial professional before making any investment decisions.
Top Highest Dividend Paying Stocks in India 2022
Your sole objective as an investor is to maximise returns with the least amount of risk, correct?
You were looking for Indian stocks with the greatest dividend yields for this reason.
You might be shocked to learn that some stocks may offer higher returns than a typical fixed-rate bank deposit.
Companies like Indian Oil, NMDC, and Coal India offer yearly dividend returns of over 10%.
This translates to a remarkable return of more than Rs. 10,000 on the investment of Rs. 100,000 from stock dividends as opposed to receiving only Rs. 7,000 in interest from a bank FD.
For investors who just want to examine which stock would have generated the greatest profits from an April 2021 investment of Rs. 100,000 held for a year, I have streamlined the process.
Disclaimer: I don’t suggest any specific stocks. The stocks featured in this article were chosen solely on the basis of their historical dividend payouts. Before you invest, make your own decision.
For instance, ITC shares were trading at Rs. 220 on April 1, 2021. You could buy 454 shares (1,000,000 / 220) for 1 lac.
In the most recent fiscal year 2021–2022, ITC Ltd paid Rs. 11 in dividends per share. 454 shares times Rs. 11 in dividends equals Rs. 4,994 in total.
Just keeping ITC stock for a year will provide you a dividend return of 4,994/1,000 = 4.99%.
The dividend returns are unaffected by changes in the ITC price.
Below is the list of the best highest dividend return stocks in India for FY 2021-22.
| Stock | Share Price as on April 01, 2021 | Dividend paid during FY 21-22 | Dividend return |
| 1.Allsec Tech | 326.30 | 60 | 18.39% |
| 2.IOCL | 62.10 | 10.50 | 16.91% |
| 3.Coal India | 132.15 | 17.50 | 13.24% |
| 4.PTL Enterprise | 19.48 | 2.50 | 12.83% |
| 5.Power Fin Corp | 114.40 | 12.75 | 11.14% |
| 6.NMDC | 138.45 | 14.74 | 10.65% |
| 7.National Aluminum Co | 58.75 | 6.00 | 10.21% |
| 8.SAIL* | 83.85 | 8.30 | 9.90% |
| 9.REC Ltd | 132.75 | 12.21 | 9.20% |
| 10.ONGC | 104.35 | 9.10 | 8.72% |
| 11.Balmer Lawrie Investment | 471.30 | 38 | 8.06% |
11 Best Dividend Paying Stocks In India 2022
1. Allsec Tech – 18.39% Dividend Return
Allsec Tech is a company that provides HR outsourcing services and digital business services from its base in Chennai.
Allsec provides comprehensive, reliable HR & compliance solutions. Allsec is a well-known BPO that offers payroll processing services all around the world.
The organisation provides services to 400+ international clients through centres in India, the Philippines, the United States, and London.
2.Indian Oil Corporation Limited (IOCL) – 16.91% Dividend Return
The largest publicly traded oil refining company is OCL. 32% of India’s total refining capacity is contributed by IOCL.
In all, IOCL owns 11 refineries with an aggregate capacity of 81.2 MMTPA.
3.Coal India Limited – 13.24% Dividend Return
The government-owned monopoly miner Coal India controls 48% of the world’s coal reserves.
Almost 83% of all the coal produced in India is produced by Coal India. Coal India extracted 596 million tonnes of coal in the FY21, which is capacity.
The electricity and steel industries, as well as manufacturers of cement, fertiliser, and brick kilns, are among Coal India’s biggest customers.
4. PTL Enterprises – 12.83% Dividend Return
PTL Enterprises is a tyre manufacturing business situated in Kerala that was founded in 1959.
In 1995, Apollo Tires bought PTL.
Currently, PTL Enterprise produces tyres exclusively under a long-term lease for Apollo Tires.
Note –For the past five years, PTL has only produced a compound profit growth of 2%. Furthermore, only 8% of the equity is returned.
5. Power Finance Corporation – 11.14% Dividend Return
PFC is a Maharatna firm that is 56% owned by the Indian government.
PFC is a non-deposit taking NBFC registered with the RBI that conducts business as an infrastructure finance company.
The primary business includes funding both fund-based and non-fund-based power projects in India.
6. NMDC Limited – 10.65% Dividend Return
The National Mineral Development Company Limited (NMDC) is a Navratna business owned by the Indian government.
With an 18% share of domestic production, NMDC is India’s largest iron ore producer.
7. National Aluminum Co (NALCO) – 10.21% Dividend Return
Aluminum and alumina are products that NALCO manufactures and sells. The company extracts 21.06 lac tpa of alumina and 73.02 lac tpa of bauxite.
The most affordable producer of bauxite and metallurgical grade alumina is NALCO.
8. Steel Authority of India (SAIL) – 9.90% Dividend Return
The largest steel-producing business in India is called Steel Authority of India Limited (SAIL). With five integrated factories and three specialised steel mills, SAIL produces iron and steel.
Structural, TMT bars, railway, wheels & axles, hot/cold rolled, stainless steel, and galvanised products are among the offered goods.
The company can currently produce 16.2 mmt of crude steel, and its capex plan to increase capacity to 21.4 mtpa is virtually finished.
9. Rural Electrification Company (REC) Limited – 9.20% Dividend Return
A nodal organisation for the execution of numerous GoI power plans aimed at expanding the nation’s power sector is REC.
The business provides funding for power generation, transmission, and distribution projects.
For power industry projects, REC offers long-, medium-, and short-term loans as well as operating capital.
10. ONGC Oil & Natural Gas Corporation – 8.72% Dividend Return
ONGC is India’s largest crude oil and natural gas firm with a 71 percent market share.
ONGC has more than 60 years of experience in oil exploration. Eight of the nine oil-producing basins in India have been found by ONGC.
In addition to extracting oil, ONGC also extracts natural gas and produces high-value goods including LPG, naphtha, propane, ethane, butane, and kerosene oil.
11. Balmer Lawrie Investment – 8.06% Dividend Return
The disinvestment of 33.58% of the Government of India’s equity ownership of 59.58% in IBP Co. led to the formation of Balmer Lawrie Investments Limited.
The Ministry of Petroleum & Natural Gas, Government of India, currently has administrative jurisdiction for Balmer Lawrie Investments Limited.
Apart for its ownership of 105679350 equity shares at Rs. 10 each in Balmer Lawrie & Co. Ltd., the company conducts no other activity.
On completion of the disinvestment of shares of Balmer Lawrie & Co. Ltd., Balmer Lawrie Investments Limited shall sell its stock and cease operations.