Top 5 High Dividend Stocks Under ₹500: Investing in the stock market today is not only a means of capital appreciation, but it can also become a reliable source of regular income. Dividend-paying companies are very popular among investors because they not only provide stable income but also give a sense of security in market fluctuations.
Many companies in India pay regular dividends to their shareholders. These companies are known for their strong financial position and stable business model. In this article, we will learn about some such companies, their market value, and their recent dividends. This information is especially beneficial for investors who are looking for stable returns over the long term.
Why are dividend stocks special?
The dividend is the amount that companies distribute as a part of their profits to their shareholders. It is a great source of regular income, especially for those who are planning for retirement or want passive income from their portfolio. Dividend-paying companies are usually established and financially strong, which provides stability even in market volatility. Many companies in India have been paying dividends continuously for the last several years. Some of these companies not only pay dividends, but their share price also sees good growth over time. Let’s take a look at highest dividend paying stocks in India.
Top 5 High Dividend Stocks Under ₹500
Indian Oil Corporation (IOC): Indian Oil Corporation is one of the largest oil and gas companies in India. This company is known for paying regular dividends to its investors. The company’s business is spread across sectors such as refining, marketing and petrochemicals.
In recent years, IOC has paid good dividends to its shareholders. As of July 31, 2024, the company had paid a final dividend of Rs 07 per share for FY 2024. On June 5, 2025, the share price of IOC was around Rs 139.40 per share. The dividend yield of the company is around 8.62%, which is attractive for investors.
Vedanta Limited: Vedanta is a leading mining and metals company that operates in sectors such as zinc, copper, and oil. This company is famous for giving huge dividends to its shareholders. In FY 2024, Vedanta issued 4 interim dividends totalling Rs 43.50 per share. On June 5, 2025, Vedanta’s share price closed at around Rs 440.10. And its dividend yield is around 9.91%. It is a great option for investors who want both high dividends and capital gains.
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
|---|---|---|---|
| 11 Dec, 2024 | 24 Dec, 2024 | Interim | 8.50 |
| 28 Aug, 2024 | 10 Sep, 2024 | Interim | 20.00 |
| 24 Jul, 2024 | 02 Aug, 2024 | Interim | 4.00 |
| 13 May, 2024 | 24 May, 2024 | Interim | 11.00 |
ITC Limited: ITC is a leading FMCG company whose business is spread across diverse sectors like cigarettes, foods, personal care, and hotels. The company is known for its strong business model and stable income. ITC has given dividends to its investors for many consecutive years.
The company had given the gift of dividends to its investors twice in the financial year 2024. On June 4, 2024, the company declared an interim dividend of Rs 7.50 per share and on February 12, 2025, Rs 6.50. So far in 2025, ITC Company has declared a dividend of Rs 7.85 per share on May 28, 2025.
Its share price closed at around Rs 419.45 on June 5, 2025. And the dividend yield was around 3.42%. This company is a reliable option for long-term investors.
Hindustan Zinc Limited: Hindustan Zinc is India’s largest zinc and lead-producing company, which is part of the Vedanta Group. This company gives regular and attractive dividends to its investors. In the financial year 2024, this company also declared dividends twice.
It announced a dividend of Rs 10 on May 15, 2024, and Rs 19 per share on August 28, 2024. The share price was around Rs 496.40, and the dividend yield was around 5.90%. The company’s strong financial position and stable profits make it a great option for dividend investors.
Coal India Limited: Coal India is India’s largest coal producing company, which plays an important role in meeting the country’s energy needs. This company also pays dividends to its shareholders regularly.
In the financial year 2024, Coal India paid the final dividend once and the interim dividend twice. In which a dividend of Rs 5 was given on August 16, 2024, Rs 15.75 on November 5, 2024, and finally, Rs 5.60 per share on January 31, 2025.
That is, in total, a dividend of Rs 26.35 per share has been given in the financial year 2024. Its share price closed at around Rs 395.10 on June 5, 2025, and the dividend yield was around 6.46%. This company is suitable for investors who want stable income and low risk.
How much do 5 companies pay the total dividend?
If we look at the dividends of these five companies, in the financial year 2024, all these companies have given a total dividend of Rs 119.85 to their investors. And the price of all these stocks is currently running under Rs 500. That is, if you are thinking of investing in a good dividend-paying company, then these five companies are a good opportunity to invest.
Benefits of Dividend Investing
Benefits of investing in dividend stocks The biggest advantage is regular income. These stocks offer stable returns even in market volatility. In addition, companies that pay dividends are usually financially strong, which reduces risk. You can further increase your returns by reinvesting dividends. For example, if you invest the dividend you receive every year in the shares of the same company, your portfolio can grow manifold in the long term. Also, dividend stocks provide a hedge against inflation, as they offer regular income.
Keep things in mind before investing.
Although dividend stocks are attractive, it is important to keep some things in mind before investing. First, check the financial position of the company. Is the company making regular profits? Is its dividend payout ratio stable? A very high dividend yield can also be a danger sign, as it may be a result of the company’s financial troubles. In addition, dividend income is also taxable. In India, dividend income up to Rs 10 lakh per annum is tax-free, but income above this is taxable as per your income tax slab. Also, 10% TDS is deducted on dividends above Rs 5,000.
To know more about tax on dividends, read the link given below:
The power of dividend stocks
Dividend-paying companies like Indian Oil, Vedanta, ITC, Hindustan Zinc, and Coal India are great options for investors. These companies not only provide regular income but also have the potential for capital appreciation in the long term. However, it is important to analyze the company’s financial position, dividend history, and market trends thoroughly before investing. If you are looking for an investment that gives both stable income and safety, then these dividend stocks can be a great addition to your portfolio.
Disclaimer: This article is for general information. Investing in the stock market is subject to risks. Analyze the company’s financial position and market conditions before investing. The dividend amount, date, and share price may change from time to time. Consult a certified financial advisor before investing. Information is backed by the sources such as: (screener, nse india)
