Many people buy stocks to earn money when the stock price goes up. However, some stocks also give extra money called dividends. These are small payments companies give to their shareholders from their profits. Some companies give these dividends regularly, and their stocks are called dividend stocks.
In this article, we will talk about dividend yield stocks and list the top 10 highest dividend yield stocks in India 2025. This will help you understand how some people earn money just by holding shares.
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Contents
- What Are Dividend Yield Stocks?
- Top 10 Highest Dividend Yield Stocks in India 2025
- Vedanta Ltd.
- Coal India Ltd.
- Hindustan Zinc Ltd.
- Castrol India Ltd.
- Gujarat Pipavav Port Ltd.
- Oil and Natural Gas Corporation (ONGC)
- NALCO (National Aluminium Company)
- REC Ltd.
- NMDC Ltd.
- Power Finance Corporation (PFC)
- Conclusion
- FAQs
What Are Dividend Yield Stocks?
A dividend is a part of a company’s profit given to its shareholders.
Dividend yield is a way to measure how much dividend a stock gives compared to its price.
It is calculated like this:
Dividend Yield = (Yearly Dividend ÷ Current Share Price) × 100
For example, if a stock is ₹100 and gives ₹5 per year, its dividend yield is 5%.
Stocks with high dividend yield are called dividend yield stocks. People like them because they can give a regular income even if the stock price doesn’t change much.
Top 10 Highest Dividend Yield Stocks in India 2025
Here is a list of 10 stocks with high dividend yields based on their recent payouts. These are listed on the stock exchange and have paid good dividends in the past. The dividend amounts may change every year.
1. Vedanta Ltd.
- Sector: Mining and Mineral Products
- Approx. Dividend Yield: 9%–10%
Vedanta Limited is a globally diversified natural-resources conglomerate, with operations spanning copper, aluminium, iron ore, power, zinc, lead & silver, oil & gas, and more.
2. Coal India Ltd.
- Sector: Mining and Natural Resources
- Approx. Dividend Yield: 6%–7%
Coal India is a government-owned company that produces coal. It earns steady profits yearly and shares many of them as dividends. It has one of the highest dividend yields among public companies.
3. Hindustan Zinc Ltd.
- Sector: Metals and Mining
- Approx. Dividend Yield: 6%–7%
Hindustan Zinc produces zinc and other metals. It is known for strong profits and high cash reserves. Because of this, it can give significant dividends quite often.
4. Castrol India Ltd.
- Sector: Commodity Chemicals
- Approx. Dividend Yield: 6%–7%
Castrol India Ltd manufactures refined petroleum products and is a leading producer of lubricants for both automotive and industrial use.
5. Gujarat Pipavav Port Ltd.
- Sector: Ports
- Approx. Dividend Yield: 5%–6%
Gujarat Pipavav Port Ltd specializes in port development and operates Pipavav Port in Gujarat, providing cargo handling, storage, and logistics services.
6. Oil and Natural Gas Corporation (ONGC)
- Sector: Oil and Gas
- Approx. Dividend Yield: 5%–6%
ONGC explores and produces oil and gas. It is one of the biggest energy companies and often pays high dividends. Its strong cash flow helps it maintain regular payouts.
7. NALCO (National Aluminium Company)
- Sector: Aluminium Manufacturing
- Approx. Dividend Yield: 5%
NALCO is involved in making aluminium and is owned by the government. It is also one of the high dividend stocks under ₹500, which makes it more affordable for small investors.
8. REC Ltd.
- Sector: Financial Services (Energy Sector Finance)
- Approx. Dividend Yield: 4%–5%
REC is also involved in lending money to power and energy projects. It is a government-backed company and has given regular dividends for many years.
9. NMDC Ltd.
- Sector: Mining (Iron Ore)
- Approx. Dividend Yield: 4%–5%
NMDC mines iron ore and sells it to industries. The company has a strong base in natural resources and pays a steady dividend almost yearly.
10. Power Finance Corporation (PFC)
- Sector: Financial Services (Power Sector Loans)
- Approx. Dividend Yield: 3%–4%
PFC provides loans to power companies. Since it deals with large-scale infrastructure projects, it generates steady income. A good part of that income is returned to shareholders as dividends.
Risk Disclaimer: Dividend yield may increase or decrease based on share price and company profits.
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Conclusion
Dividend yield stocks are popular because they give extra income as dividends. Some companies in India have paid dividends regularly for many years. But remember, dividend amounts and yields can change. It is essential to check the latest data before buying any stock.
Holding good dividend stocks for a long time may help build passive income over time. Still, learning more and understanding the risks before investing is a good idea.
Disclaimer: Investment in the securities market is subject to market risks. Please read all scheme-related documents carefully before investing. The information provided in this article is for educational and informational purposes only and is not intended as investment advice. Trading in derivatives, including options, involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results. Readers are advised to consult with their financial advisors before making any trading decisions.
FAQs
You can earn passive income by holding shares of companies that give dividends. When the company declares a dividend, you will get money in your bank account based on the number of shares you own.
Many companies give dividends. Some well-known names are Coal India, ONGC, IOCL, and BPCL. These companies have a history of giving dividends for many years.
Dividend yield shows how much dividend you get for the stock price. Payout ratio shows how much of the company’s profit is paid out as a dividend. Both are used to understand how a company pays dividends.