A dividend is an optional reward given by companies to shareholders in order to please and retain shareholders.
Investing in dividend-paying stocks can be a great way to generate passive income while benefiting from capital appreciation. In India, several companies consistently reward their shareholders with attractive dividends. In this blog, we will look at the Highest Dividend-paying stocks in October 2024 based on dividend yield.
Highest Dividend Paying Stocks in October 2024 – Based on Dividend Yield
| Company Name |
Market Cap (In ₹ Crore) |
Dividend Yield (%) |
1Y Return (%) |
| Indian Oil Corporation Ltd |
2,54,196.41 |
6.50 |
99.13 |
| Chennai Petroleum Corporation Ltd |
13,709.53 |
5.97 |
78.18 |
| Bharat Petroleum Corporation Ltd |
1,59,353.31 |
5.63 |
110.49 |
| Vedanta Ltd |
2,00,265.14 |
5.48 |
145.45 |
| Coal India Ltd |
3,18,058.41 |
4.94 |
77.02 |
Note: The above stocks have been selected from the Nifty 500 universe and sorted based on high dividend yield stocks as of September 30, 2024.
Overview of 5 Highest Dividend Paying Stocks
- Indian Oil Corporation Ltd (IOCL): Indian Oil Corporation Ltd is a Maharatna Company having business interest in the entire hydrocarbon value chain – from Refining, Pipeline transportation and marketing of Petroleum products to R&D, Exploration & production, marketing of natural gas and petrochemicals. During FY24, IOCL’s liquid pipeline surpassed previous records, reaching over 95.8 MMT, while product pipelines too achieved a record throughput of 43.99 MMT.
Key Metrics:
- Return on Equity (ROE): 25.7%
- Return on Capital Employed (ROCE): 21.1%
- Chennai Petroleum Corporation Ltd (CPCL): Chennai Petroleum Corporation Limited is in the business of refining crude oil to produce & supply various petroleum products and manufacture and sale of lubricating oil additives. As part of renewable energy initiatives, CPCL installed 2.3 MW of ground-mounted and Rooftop solar panels in its buildings and Refinery complex.
Key Metrics:
- ROE: 36.5%
- ROCE: 35.4%
- Bharat Petroleum Corporation Ltd (BPCL): Bharat Petroleum Corporation is a public sector company which is engaged in the business of refining of crude oil and marketing of petroleum products. During Q1 FY25, BPCL’s refineries continued with stellar performance and achieved a throughput of 10.11 MMTPA almost 116% of the nameplate capacity.
Key Metrics:
- ROE: 41.9%
- ROCE: 32.1%
- Vedanta Ltd: Vedanta Ltd is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas. The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas. At FACOR ferro chrome, Vedanta has already doubled its production since its acquisition and it is now on track to become India’s largest ferro alloy producer with 500 KTPA capacity.
Key Metrics:
- ROE: 10.5%
- ROCE: 20.9%
- Coal India Ltd: Coal India Ltd is mainly engaged in the mining and production of Coal and also operates Coal washeries. The major consumers of the company are the power and steel sectors. Consumers from other sectors include cement, fertilizers, brick kilns etc. During Q1 FY25, the company recorded coal production of 189.29 MT. It is optimistic about favourable demand from key sectors such as power and steel.
Key Metrics:
Conclusion
Investing in dividend-paying stocks can be an effective strategy for building wealth over time. The stocks mentioned above not only provide regular income but also have the potential for capital appreciation. However, it’s essential to conduct thorough research and consider your financial goals before making investment decisions.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
