Here are some of the top dividend‑yielding stocks in India as of mid‑2025. These are among the highest-yielding names backed by recent data and analyst commentary:
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📌 Leading Dividend Stocks in India (2025)
Coal India Ltd. – Dividend yield around ~9–10% in 2025; enjoys a near‑monopoly position and cash-rich operations within the PSU sector.
Hindustan Zinc Ltd. – Yield estimates ranging from ~8% up to ~15% in some reports; strong profitability, zero debt, and consistent payouts.
Vedanta Ltd. – Yield estimated around 9–11%; benefited from diversified metal/oil operations and strong free cash flow.
Power Finance Corporation (PFC) – Dividend yield around ~7–8%, backed by government support and stable NBFC role in financing power projects.
REC Ltd. (Rural Electrification Corporation) – Yield in the ~7–9% range, reliable PSU lender in the power sector.
Indian Oil Corporation Ltd. (IOC) – Typically ~7–9% yield; large integrated oil‑and‑gas PSU with consistent dividend track record.
ONGC (Oil and Natural Gas Corporation) – Yield around ~6–8%; one of India’s largest E&P companies.
ITC Ltd. – Yield ~4–5%; diversified FMCG and hotel business with solid dividend history.
NMDC Ltd. – Yield estimated ~8–11%; government-owned iron‑ore miner with steady payouts.
Some other notable names include Chennai Petroleum (CPCL) (~7–9 %), Bharat Petroleum (BPCL) (~6–7 %) and Power Grid (~6–8 %) with solid dividend histories.
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💡 What to Look For When Picking a Dividend Stock
1. Sustainable Yield, Not Just High Yield: Very high dividend yields (e.g. 15%+) can indicate risk if unsupported by earnings or free cash flow.
2. Payout Ratios: A payout ratio between ~30–60% is considered healthy. Above that may be unsustainable.
3. Financial Strength & Cash Flow: Companies like Hindustan Zinc and Coal India have strong margins and steady income.
4. Government Backing (for PSUs): Firms like PFC, REC, IOC tend to provide stable payouts even during industry cycles.
5. Diversification: Consider splitting across sectors—energy, mining, metals, utilities and FMCG—to reduce risk.
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🧾 Summary Table
Company Sector Est. Yield¹ Notes
Coal India Coal / Mining (PSU) ~9–10% Highly predictable payouts
Hindustan Zinc Mining / Metals ~8–15% Zero debt, robust cash flow
Vedanta Diversified Metals/Oil ~9–11% Highly cyclical, payouts tied to earnings
PFC Power Financing (PSU) ~7–8% Govt‑backed, stable NBFC model
REC Ltd. NBFC / Power Sector ~7–9% Similar to PFC, strong history
IOC Oil & Gas PSU ~7–9% Big scale, government support
ONGC Oil Exploration (PSU) ~6–8% Depends on global oil prices
NMDC Iron‑ore Mining (PSU) ~8–11% Commodity‑driven payout profile
ITC FMCG / Hotels (Private) ~4–5% Diversified, stable cash generation
¹Yield estimates based on mid‑2025 data. Actual yield may vary depending on stock price and declared dividend amounts.
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📰 Broader Market Trends
Recently, Indian IT stocks (like TCS, Infosys) hit decade‑high dividend yields, but their yields remain modest (~1–3%). Experts suggest balancing yield with growth and global demand considerations.
Jefferies and other global brokers have been highlighting value‑oriented plays amid stretched valuations in the broader Indian market. Dividend‑focused stocks often offer more resilience.
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⚠️ Risks & Tax Considerations
Tax on Dividends in India can be substantial—individuals pay additional tax on dividends received, lowering net yield.
Dividend cuts can occur if cash flows weaken or commodity prices fall. Vedanta and ONGC are especially cyclical.
High yield traps: Stocks with unusually high yield but weak fundamentals may not sustain payments or could even cut payouts.
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✅ Final Takeaway
If you’re seeking steady income with moderate risk, focus on established dividend payers like Coal India, Hindustan Zinc, PFC, REC and IOC. For broader diversification, you may also consider Vedanta, ONGC, NMDC, and ITC. Be mindful of yield sustainability, financial health, payout ratios, and Indian dividend tax mechanics.
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