Kolkata: Dividends can often be a steady source of income for equity investors in India, particularly in financially stable companies with a known and consistent dividend paying record. Usually companies that regularly pay dividends have robust balance sheets, low debt, and healthy cash flows for understandable reasons. Analysts also point out that on the whole dividend-paying stocks display lower volatility compared to pure growth stocks. According to a report, the top dividend paying companies in India in FY25 were TCS, Page Industries, Hero MotoCorp, Britannia Industries and Eicher Motors.
Here we have a look at 10 PSU stocks that have paid dividends regularly. A few companies have also offered attractive dividend yields which have shown improvement in yield every year. Let’s have a closer look.
The 10 dividend paying PSU stars
MSTC: This company is a Mini-ratna PSU. It paid a total of Rs 40.5 per share through three interim dividends in FY25. This resulted in a dividend yield of 7.7%, the highest in this list. In FY24, it paid Rs 15.5 and in FY23, Rs 15 per share in dividends.
Coal India: It recorded a dividend yield of 6.6% in FY25. This was 6.4% in FY24 and 6.1% in FY23. The consistently increasing yield makes it reliable for dividend investors.
Balmer Lawrie Investments: Balmer Lawrie Investments is an NBFC operating under the Ministry of Petroleum. It posted a dividend yield of 5.9% in FY25. This was 5.2% in FY24 and 4.5% in FY23.
Balmer Lawrie & Company: This company offered a dividend yield of 4.6% in FY25.
GAIL: GAIL is a PSU in the field of gas and oil. It provided a dividend yield of 4.4% in FY25. This figure is significantly better than FY24 and FY23.
ONGC: This domestic crude producer provided a dividend yield of 5.1% in FY25, which is the same as FY24, while it was 4.7% in FY23.
REC: This is a power sector finance company which posted a dividend yield of 5% in FY25. It was better than 4.5% in FY24 and 3.5% in FY23.
Power Finance Corporation: This company had a dividend yield of 4.4% in FY25, which has consistently increased compared to the previous two years.
NMDC: It is the country’s largest iron ore producer, provided a dividend yield of 4% in FY25, which is higher than the two earlier years.
UTI AMC: It paid a special dividend of Rs 22 per share in FY25, resulting in a yield of 4.2%.
