Top 10 Best Dividend-Paying Stocks in India for Passive Income
10 dividend paying stocks in India screened on 3-year dividend growth, dividend yield and dividend per share, with yields up to 9.90%.
Some of the best dividend-paying stocks in India in 2026, screened on 3-year dividend growth, dividend yield and dividend per share, include Procter & Gamble Health, Quess Corp, GOCL Corporation, Castrol India, and Hero MotoCorp. Dividend yields across this list range from about 3.18% to 9.90%, with 3-year dividend growth as high as 63.47%. A high yield alone is not enough; always check whether the payout looks sustainable.
When most people hear the phrase "passive income," they instantly think about rental income, side hustles, or fixed deposits. But there is another category that quietly attracts long-term investors year after year: dividend-paying stocks in India.
And no, this is not just about getting a small payout once a year.
For many investors, dividends represent something deeper: consistency, financial discipline, strong cash flows, and businesses mature enough to share profits with shareholders regularly.
But here is where it gets interesting. A high dividend yield alone does not always tell the full story. Some companies may offer a strong yield today but struggle to maintain it. That is why many investors also look at dividend growth trends over time and dividend per share figures to understand how sustainably a company has rewarded shareholders.
In this blog, we look at some of the highest-paying dividend stocks based on three factors: 3-year historical dividend growth, dividend yield, and dividend per share. The data below focuses on companies that have shown strong dividend-related metrics over the last three years.
What Makes a Strong Dividend Stock?
Many investors only look at dividend yield. But relying on a single metric can sometimes be misleading. Instead, dividend-focused investors often evaluate three important metrics together.
1. Dividend Yield
This shows how much dividend a company pays relative to its share price. A higher yield naturally attracts attention, especially among investors looking for regular income.
2. Dividend Per Share (DPS)
This reflects the actual amount distributed per share and helps investors understand the scale of payouts. For example, the State Bank of India presented a ₹8,813 crore dividend cheque to the Government of India for FY26 after reporting an annual net profit of ₹80,032 crore, showing how large and consistent payouts can become when a company generates strong profits.
3. Historical Dividend Growth
This is where things become more insightful. A company that has steadily increased dividends over the last three years may indicate improving financial performance and consistency in shareholder payouts. The companies below stand out because of their combination of these three metrics.
Best Dividend-Paying Stocks in India That Stood Out
1. Canara Bank Ltd
Among the larger public sector banks, Canara Bank reported a 3-year historical dividend growth of 20.51%, a dividend yield of 3.18%, and a dividend per share of ₹4.20. The share delivered returns of over 16.50% in the past year, whereas the Nifty 50 fell about 7.41% over the same period, as of June 09, 2026.
2. Hero MotoCorp Ltd
Hero MotoCorp remains one of the notable names when discussing the highest paying dividend stocks in India.
- 3-year dividend growth: 22.76%
- Dividend yield: 3.87%
- Dividend per share: ₹185.00
What stands out here is the dividend per share figure, which is among the highest on the list. The share delivered returns of over 11.51%, whereas the Nifty Midcap 50 delivered just 2.60% in the past year, as of June 09, 2026.
3. Bank of India Ltd
Another public sector banking name on the list, Bank of India, reported:
- 3-year dividend growth: 32.48%
- Dividend yield: 3.32%
- Dividend per share: ₹4.65
The presence of multiple PSU banks in dividend-focused discussions highlights how banking profitability trends have evolved over recent years. The share gave returns of 12.77%, whereas the Nifty PSU Bank index gave returns of over 17.49% in the past year, as of June 09, 2026.
4. Alldigi Tech Ltd
Alldigi Tech, which operates in the IT Services & Consulting sub-sector, also stands out on its dividend metrics over the last three years.
- Market cap: ₹1,258.61 crore
- 3-year dividend growth: 44.22%
- Dividend yield: 7.26%
- Dividend per share: ₹60.00
The combination of a relatively high yield and strong dividend growth places it among the notable names in the broader discussion around dividend-paying stocks in India. The share gave negative returns of 9.45% in the past year, whereas the Nifty 50 gave negative returns of 7.41%, as of June 09, 2026.
5. Castrol India Ltd
Castrol India remains relevant in dividend discussions because of its combination of a stable yield and consistent payouts.
- 3-year dividend growth: 26.79%
- Dividend yield: 7.24%
- Dividend per share: ₹13.25
This places it among the higher-yielding names on the list. The share gave a negative return of 17.31% in the past year, whereas the Nifty Energy index gave returns of over 9.17% as of June 09, 2026.
6. Chennai Petroleum Corporation Ltd
Energy and refining companies often feature in dividend conversations because profitability in such sectors can significantly influence payouts.
- 3-year dividend growth: 31.93%
- Dividend yield: 5.20%
- Dividend per share: ₹62.00
The dividend per share figure here is particularly notable. The share gave returns of over 84.95% in the past year, whereas the Nifty 500 gave a negative return of 4.31% as of June 09, 2026.
7. UTI Asset Management Company Ltd
UTI AMC reported:
- 3-year dividend growth: 22.05%
- Dividend yield: 4.36%
- Dividend per share: ₹40.00
Asset management businesses often attract investor attention during periods of rising retail participation in financial markets. The share gave a negative return of 27.70%, whereas the Nifty 500 gave negative returns of 4.30% as of June 09, 2026.
8. Procter & Gamble Health Ltd
Among all companies listed, Procter & Gamble Health reported one of the highest dividend per share figures.
- 3-year dividend growth: 63.47%
- Dividend yield: 6.69%
- Dividend per share: ₹415.00
The dividend per share figure stands out significantly compared with many other companies in the dataset. The share gave returns of over 9.11%, whereas the Nifty 50 gave negative returns of 7.37%, as of June 09, 2026.
9. Quess Corp Ltd
Quess Corp reported:
- 3-year dividend growth: 43.07%
- Dividend yield: 9.90%
- Dividend per share: ₹11.00
A near double-digit dividend yield naturally makes this company stand out in conversations around dividend-paying stocks in India. The share gave negative returns of 25.07%, whereas the Nifty Total Market index gave negative returns of 4.05% as of June 09, 2026.
10. GOCL Corporation Ltd
GOCL Corporation reported:
- 3-year dividend growth: 44.22%
- Dividend yield: 7.57%
- Dividend per share: ₹30.00
Its dividend yield places it among the higher-yielding names in the dataset. The share gave returns of over 4.64% in the past year, whereas the Nifty 50 gave negative returns of 7.41%, as of June 09, 2026.
Best Dividend-Paying Stocks in India: At a Glance
| Company Name | Sub-Sector | 3Y Dividend Growth | Dividend Yield | Dividend Per Share |
|---|---|---|---|---|
| Canara Bank Ltd | Public Banks | 20.51% | 3.18% | ₹4.20 |
| Hero MotoCorp Ltd | Two Wheelers | 22.76% | 3.87% | ₹185.00 |
| Bank of India Ltd | Public Banks | 32.48% | 3.32% | ₹4.65 |
| Alldigi Tech Ltd | IT Services & Consulting | 44.22% | 7.26% | ₹60.00 |
| Castrol India Ltd | Commodity Chemicals | 26.79% | 7.24% | ₹13.25 |
| Chennai Petroleum Corporation Ltd | Oil & Gas – Refining & Marketing | 31.93% | 5.20% | ₹62.00 |
| UTI Asset Management Company Ltd | Asset Management | 22.05% | 4.36% | ₹40.00 |
| Procter & Gamble Health Ltd | Pharmaceuticals | 63.47% | 6.69% | ₹415.00 |
| Quess Corp Ltd | Employment Services | 43.07% | 9.90% | ₹11.00 |
| GOCL Corporation Ltd | Commodity Chemicals | 44.22% | 7.57% | ₹30.00 |
Source: Tickertape Screener, using filters for 3-year historical dividend growth, dividend yield, and dividend per share. Companies are arranged from highest to lowest based on their 3-year historical dividend growth. Data as of June 09, 2026.
The Bigger Picture Behind Dividend Stocks
Dividend-focused companies are often tracked for their consistency in shareholder payouts over time. The companies above drew attention based on metrics such as 3-year dividend growth, dividend yield, and dividend per share over the last three years.
For many market participants, these metrics are commonly used to understand broader trends around cash generation, payout consistency, and historical dividend performance. Still, dividend trends can change depending on company performance, sector conditions, and overall market cycles. Investors who want regular income sometimes pair dividend stocks with other routes such as ETFs and track upcoming dividend announcements through the year.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before making investment decisions.