You invest in a stock, hoping for regular dividends, but then months pass and you start asking yourself: “Did I pick the right company? Will they even pay me something?” Have you ever felt this?
You are not alone. Many investors jump into dividend stocks India without really knowing which companies are consistent payers and which ones are not. And let’s be honest, waiting for that payout sometimes feels frustrating.
The truth is, the market has plenty of companies that “promise” payouts, but only a handful have a proven track record. If you’re looking to build steady passive income from stocks in 2025, the smart way is to focus on businesses with strong fundamentals, surplus cash reserves, and shareholder-friendly policies.
Below are some of the best dividend-paying stocks in India 2025 chosen based on payout history, consistent profits, and diversification across sectors.
These stocks are picked based on consistent payout history, strong cash flows, and growth potential, while also ensuring sector diversification.
-
Coal India
Coal India remains one of the strongest passive income stocks in India, paying interim dividends of ₹15.75 and ₹5.60 share and declaring a ₹5.15 final dividend in FY25 with a strong 7.07% yield.
As the country’s monopoly coal company with 80 percent market share and a profit of 9,593 crores in Q4 FY25, it is still very cash-rich and is backed by the government. For investors looking for a steady and high dividend yield share, this is an ideal investment.
-
ITC
ITC is a household name in income-generating stocks, announcing interim dividends of ₹4.50 and ₹3.25 share and paying a ₹ ₹7.85 final dividend with a 3.5% yield. It offers stability and reliable payouts to its investors due to the firm’s strong profit in the fourth quarter of FY25, which was ₹5,155 crore, as well as its diversified FMCG business. Investors who are looking for a steady income with exposure to long-term growth will find this investment suitable for them.
-
Power Grid
Power Grid remains one of the most consistent dividend payers, distributing ₹1.25 final dividend in FY25 along with interim dividends of ₹4.50 and ₹3.25 with dividend yield 3.27%. Backed by a strong Q4 FY25 profit of ₹4,143 crore and stable cash flows from its nationwide transmission network, it ensures predictable income and is top Indian shares for regular passive income. Best suited for investors who prefer reliable, policy-backed dividends with low business risk.
- NTPC
NTPC remains a strong choice for both dividends and growth. Shareholders received a final dividend of ₹3.35 per share for FY25 along with interim dividends of ₹2.5 and ₹2.5 having dividend yield of 2.55%.
The company’s strong operational performance led to a profit of ₹7,897 crore in Q4. NTPC is a clear winner, offering stable income and long-term growth. Its clean energy efforts keep it at the top in conventional power generation.
Best suited for investors seeking steady income with long-term growth potential in the power sector.
-
REC
REC Limited continues to shine as a top dividend stock with strong growth. In FY25, shareholders received interim dividends of ₹3.50, ₹4.00, ₹4.30, ₹3.60 and ₹2.60 final dividend with 5.14% dividend yield.
The company posted a robust Q4 profit of ₹4,309 crore and a stellar full-year profit. With healthy margins, strong asset quality, and government backing, REC delivers steady passive income alongside growth in India’s power financing space.
Best suited for investors looking for high dividend yield share with the safety of a government-backed company
-
PFC
Power Finance Corporation (PFC) continues to impress with both dividend income and financial strength. In FY25 Q4, PFC issued interim dividends of ₹3.25, ₹3.50,another ₹3.50 and shareholders received ₹2.05 final dividend, resulting in a dividend yield around 4.16. The company achieved a Q4 net profit of ₹8,358, driven by strong interest income and improving asset quality.
Power Finance Corporation is a good choice for an investor who is looking for a mix of passive income and growth since it has a significant role in financing the power sector, good margins, and the backing of the government. Best suited for income-focused investors who want stable dividends along with steady capital appreciation potential.
-
IOL
Indian Oil Corporation (IOC) delivered a compelling dividend performance in FY25. The board recommended a final dividend of ₹3 and interim dividend of ₹5, yielding approximately 2.2% at recent share prices. Q4 concluded with a stellar net profit of ₹7,265 crore, up around 50% year-on-year.
Anchored by its nationwide refining and distribution dominance, consistent cash flows, and strong governmental backing, IOC remains a dependable dividend option. Best Suited For: Investors seeking stable dividend income with exposure to India’s energy infrastructure.
-
NMDC
NMDC Ltd is an excellent pick for both dividend income and operational strength. In FY25, it paid a ₹1 final dividend along with a dividend yield of 4.80%.
The company recorded a net profit of ₹5632 in Q4. NMDC being the top iron ore producer in India, generating positive cash flows from operations, and having the full support of the government makes it a very strong stock for those investors who are looking for a stable income with the safety of growth.
Best suited for investors looking for a balanced portfolio consisting of regular dividend income along with a solid exposure to the Indian mining sector.
-
Infosys
Infosys continues to be a reliable dividend stock in India’s IT sector. In FY25, the company declared a final dividend of ₹22 per share with ₹21 per share interim dividend, resulting in an attractive dividend yield of 2.93%. Despite a decline in net profits to 7,033 crore in Q4, the company generated its highest-ever free cash flow.
Information Technology giant Infosys offers a compelling blend of dividend income and growth potential in the form of dividends from its highly diversified business model and a capital-return policy that distributes approximately 85% of free cash flow to shareholders.
-
Pfizer
Pfizer Ltd (India) stood out in FY25 with impressive dividend payouts and impressive earnings. In the fourth quarter of the year, the company posted a net profit of ₹331 crore.
Based on the recommendations of the board, a final dividend of 35 % was recommended. As a result, this dividend yield is 3.20%, which is a very attractive dividend yield.
This investment is best suited to investors who are looking for occasional, but high-yield payouts. It comes backed by a global pharma heavyweight with strong cash flow and one-time payouts.
Conclusion
Building wealth through dividend stocks India is not about chasing the highest yields, it’s about consistency, fundamentals, and diversification. The companies mentioned here, ranging from energy behemoths like Coal India and IOC, power giants such as PFC and REC, tech giants like Infosys, to even global health care brands like Pfizer, are all different due to their strengths in a dividend-centric portfolio. This combination will not only become a source of regular income but will also open the doors to wealth accumulation over the long run.
I am a semi-qualified Company Secretary turned content writer who blends the analytical depth of finance with the clarity of legal knowledge to craft content that informs, educates, inspires, and ranks on Google. Having won national-level article writing competitions and contributed to reputed magazines, I now focus on creating impactful content that balances technical accuracy with engaging storytelling.
- Best Dividend Stocks in India for Steady Passive Income - September 1, 2025
- Top 10 Indian Stocks to Watch Before Q2 Earnings Season 2025 - August 25, 2025
