Top 10 Largecap Dividend-Paying Stocks to Keep an Eye on as Dividend Season Approaches

Large-cap stocks are often considered the best investment option for long-term investors and wealth builders who benefit from compounding over time.

They provide better security, wealth creation, and market dominance over their sector, all green flags as to why they are the titans of their industry.

When searching for a substantial investment, it's tempting to check out the highest-paying dividend stocks.

Who wouldn't be drawn to the idea of growing capital and getting a regular income? It's like the sweet spot for folks wanting the best of both worlds in their portfolio.

Combining the improved stability and capital appreciation of large-cap stocks, and the added benefit of dividends, here are the top 10 large-cap dividend stocks to watch out for.

#1 Vedanta

First on the list is Vedanta.

Vedanta is a diverse natural resource company that explores, extracts, and processes minerals as well as oil and gas.

The company tops the chart in the large-cap space with the highest dividend yield of 16.6%.

The five-year average dividend payout ratio stands at 79.2%. The dividend yield over the past five years has averaged 13.7%.

Vedanta has remained a consistent dividend payer. Since 2001, the company has declared 41 dividends.

For the financial year 2023-2024, Vedanta has declared five two dividends. The total dividend declared for the year has shot up to Rs 29 per share, including the second interim dividend.

The dividend outgo by Vedanta has surged in the last few years. In FY23, it paid a total dividend of Rs 375.7 bn. Vedanta declared Rs 166.9 bn in divided in FY22 and Rs 35.2 bn in FY21.

Considering its rich history, it could announce a dividend this earning season.

Vedanta's dividend yield is the highest compared to its peers. For a detailed comparison, check out Best High Dividend Stock 2024: Vedanta vs Coal India.

Vedanta's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	18.9	3.9	9.5	45.0	101.6
Dividend payout ratio (%)	72.3	-30.6	23.5	70.6	260.3
Dividend Yield (%)	10.3	6.0	4.2	11.2	36.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out the Vedanta company fact sheet and quarterly results.

#2 Hindustan Zinc

Second on the list is Hindustan Zinc.

One of the most well-liked companies for investors searching for consistent dividend payments is Hindustan Zinc. It is the sole and top producer of zinc, lead, and silver in India.

The company has a mined metal capacity of around 1.2 million tonnes per annum, and it's aggressively expanding its mining capacities with six ongoing major mining projects.

Hindustan Zinc, the world's second-biggest zinc producer, operates the world's third-largest open-pit mine and the world's largest zinc mine in Rampura Agucha, Rajasthan.

Further, the average 5-year dividend yield for Hindustan Zinc is a whopping 10.6%. Meanwhile, the average dividend payout ratio stands at 165.1%.

For the financial year 2023-2024, Vedanta has declared five two dividends.

The company's board of directors, on 4 December 2023, declared an interim dividend of Rs 6 per share for the financial year 2023-24.

Before this, in July 2023, the company had declared an interim dividend of Rs 7 per share.

Since 2013, Hindustan Zinc has paid more in dividends alone than Bajaj Finance, Asian Paints, and Titan Company have made in profits combined!

The company has given approximately Rs 700 bn in dividends over the past ten years.

The company stand among the stocks with high dividend yields in FY23.

Hindustan Zinc's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	20.0	16.5	21.3	18.0	75.5
Dividend payout ratio (%)	106.2	102.5	112.8	79.0	303.5
Dividend Yield (%)	6.9	8.0	8.8	5.3	24.1

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Hindustan Zinc company fact sheet and quarterly results.

#3 Coal India

Third on the list is Coal India.

Coal India (CIL) is an Indian central public sector undertaking (PSU) under the ownership of the Ministry of Coal, Government of India.

It's the largest government-owned coal producer in the world. The PSU contributes around 82% to the total coal production in India.

With its dividend yield of 5.3%, Coal India has emerged as a popular choice among investors seeking dividend-paying stocks.

Its five-year average dividend payout ratio stands at 56.3%, while its average dividend yield is 9.4%.

Coal India has paid over 12 dividends (including interim dividends) in the last ten years.

For the financial year 2023-24, Coal India has declared an interim dividend of Rs 15.3 per share.

Coal India's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	13.1	12.0	16.0	17.0	24.3
Dividend payout ratio (%)	46.2	44.3	77.6	60.3	53.1
Dividend Yield (%)	5.5	8.6	12.3	9.3	11.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out the Coal India company fact sheet and quarterly results.

#4 ONGC

Fourth on the list is ONGC.

ONGC is the largest publicly traded oil and gas exploration and production company in India, accounting for 70% of the country's crude oil production, which is nearly equivalent to 57% of the total demand in the nation.

ONGC has a dividend yield of 4.1%.

The company's 5-year average dividend payout ratio is 34.4%, with an average dividend yield of 5.8%.

It has declared 57 dividends since 2000.

For the financial year 2024, it has declared two interim dividends, resulting in a total dividend payout of Rs 9.8 per share, including the second interim dividend.

With the current year's profits also looking promising, shareholders can expect continued favourable returns.

This energy stock is poised for a record-breaking dividend payout driven by significant surge in net profit.

ONGC's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	7.0	5.0	3.6	10.5	11.3
Dividend payout ratio (%)	28.9	59.8	22.3	27.6	43.2
Dividend Yield (%)	4.4	7.3	3.5	6.4	7.5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out ONGC quarterly results and ONGC share price.

#5 Power Grid Corporation of India

Fifth on the list is the Power Grid Corporation of India.

Established in 1992, Power Grid is among the biggest public-sector undertakings (PSUs) in India. Despite its modest origins, the company has expanded rapidly to meet the country's insatiable demand for electricity.

It has a dividend yield of 3.9%.

The company's 5-year average dividend payout ratio is 54.2%, with an average dividend yield of 5.9%.

Along with having a monopoly status, the company has rewarded its shareholders with hefty dividends over the years. It has paid 38 dividends since 2008.

In financial year 2023, the company paid a dividend of Rs 14.8 per share.

So far for the current financial year, Power Grid has paid two dividends of Rs 4 and Rs 4.5 each, respectively in November 2023 and February 2024.

In the past five years, the dividend per share has averaged more than Rs 10.

So, there's a good chance that Power Grid may continue its dividend spree by announcing a final dividend soon.

It even rewarded shareholders with bonus shares in September 2023 in the 1:3 ratio.

Power Grid Corporation of India's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	4.7	5.6	6.8	11.1	11.1
Dividend payout ratio (%)	43.4	47.3	52.2	61.2	66.7
Dividend Yield (%)	4.2	6.3	5.6	6.8	6..5

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out the Power Grid company fact sheet and quarterly results.

#6 BPCL

Sixth on the list is Bharat Petroleum Corporation (BPCL) is an Indian government-owned oil and gas corporation.

It's under the ownership of Ministry of Petroleum and Natural Gas, Government of India and operates two large refineries in Kochi and Mumbai.

BPCL accounts for nearly 14.1% of the country's refining capacity and has around 20% market share in the domestic petroleum market.

The company's high-capacity utilisation at refineries ensures strong operating efficiency and its proximity to the coast ensures logistical benefit in procuring crude

BPCL has a dividend yield of 3.5%.

Over the past five years, it has had an average dividend payout ratio was 39.9% and an average dividend yield of 6.8%.

BPCL has paid 40 dividends since 2001. In FY23, it has paid two interim dividends amounting to Rs 5 per share.

In FY24 company paid and interim dividend of Rs 21 per share.

BPCL's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	17.2	14.9	76.2	15.7	3.9
Dividend payout ratio (%)	43.8	88.5	95.5	29.2	40.0
Dividend Yield (%)	4.8	5.2	18.5	4.5	1.2

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out BPCL's financial factsheet and its latest quarterly results.

#7 HCL Technologies

Seventh on the list is HCL Technologies.

HCL Technologies is one of the world's fastest-growing IT services companies.

To its diverse client base spread across 46 countries, the company provides IT and business services, engineering, and R&D services, as well as various products and platforms.

This IT company has a knack for declaring big consecutive dividends. Since 2006, the company has declared 85 dividends in total.

Ever since FY14, the company has paid dividends consistently during all quarters and the last quarter of the last financial year is no exception.

The board of directors of the company is scheduled to be held on April 25 & 26, 2024 to consider the payment of Interim dividend for FY25

The record date for the same is fixed as 7 May 2024. So far for FY24 the company has paid a total dividend of Rs 34 per share.

The company has consistently declared dividends for the last five years. It has declared a total of 89 dividends since 2000.

The five-year average dividend payout ratio stands at 46.3%. The dividend yield over the past five years has averaged at 2.4%.

HCL Technologies' Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	4.0	10.0	10.0	42.0	48.0
Dividend payout ratio (%)	10.7	24.5	24.3	84.3	87.7
Dividend Yield (%)	0.7	2.3	1.0	3.6	4.4

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out HCL Technologies company fact sheet and quarterly results.

#8 Oil India

Eight on the list is Oil India.

Oil India is a fully integrated oil and natural gas company that explores, develops, produces and transports crude oil, natural gas and liquified petroleum gas (LPG).

Apart from its core business, the company has also ventured into renewable energy where it generates electricity through solar, wind, and green hydrogen sources.

The constant expansion undertaken by the company has allowed it to ascend to the second-largest oil and natural gas company in the country. In 2023, Oil India contributed 10% of the country's crude oil production.

The company has a dividend yield of 3.2%.

The five-year average dividend payout ratio stands at 23.1%. The dividend yield over the past five years has averaged 7.3%.

In the fiscal year 2024, the company disbursed two interim dividends: one of Rs 8.5 and another of Rs 3.5, totaling Rs 12 in dividends for the year.

With a good history of dividend payouts, the company has declared 35 dividends since 2010.

In 2024, Oil India ranks among the top energy stocks to watch for substantial dividends.

Oil India's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	10.3	10.6	5.0	14.3	20.0
Dividend payout ratio (%)	34.3	23.0	13.1	23.0	22.0
Dividend Yield (%)	5.5	12.8	4.1	6.0	7.9

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the Oil India company fact sheet and quarterly results.

#9 Hindustan Petroleum Corporation (HPCL)

Ninth on the list is Hindustan Petroleum Corporation (HPCL).

HPCL is one of India's leading oil marketing companies, with a market share of 21%. It's an integrated refinery and petroleum marketing company.

The company has a refining capacity of over 15 million metric tonnes per annum (MMTPA) in its Mumbai and Visakhapatnam plants which are running at a utilisation rate of above 100%.

It has a dividend yield of 3.1%.

Over the past five years, it has had an average dividend payout ratio was 30% and an average dividend yield of 5.1%.

HPCL has paid 34 dividends since 2000. For the financial year 2024, it has paid a dividend of Rs 15.

HPCL's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) (Rs)	17.1	10.5	23.2	14.0	0.0
Dividend payout ratio (%)	42.1	48.0	31.0	34.0	0.0
Dividend Yield (%)	5.6	5.1	9.1	5.2	0.0

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, check out the HPCL company fact sheet and quarterly results.

#10 ITC

Last on the list is ITC.

ITC is India's biggest cigarette & one of the largest fast-moving consumer goods (FMCG) companies.

It has a 78% market share in cigarettes and a presence in other business segments such as staples, biscuits, and personal care products. The company is also present in the paperboard, printing, & packaging business.

It has a dividend yield of 2.9%.

ITC's board of members on 29 January declared an interim dividend of Rs 6.3 per ordinary share or 625%, having a face value of Re 1 each for the financial year 2024.

With a good history of dividend payouts, the company has declared 28 dividends since 2001.

The average dividend payout ratio for five years stands at 84.8%. The dividend yield over the past five years has averaged 4.3%.

ITC's Dividend History (2019-23)

	19-Mar	20-Mar	21-Mar	22-Mar	23-Mar
Dividend per share (Adj.) * (Rs)	5.7	10.0	10.6	11.4	15.4
Dividend payout ratio (%)	54.9	80.0	98.9	91.4	98.9
Dividend Yield (%)	1.9	5.9	4.9	4.6	4.0

*Adjusted for bonus issues and stock splits
Source: Equitymaster

For more details, see the ITC company fact sheet and quarterly results.

Conclusion

Investing in dividend-paying largecap stocks can be a prudent strategy for many investors.

These stocks often offer stability and consistent income through dividend payments, which can be particularly attractive for those seeking regular returns or looking to supplement their investment portfolio with income.

Additionally, large-cap stocks typically have established track records, solid financials, and may be less volatile compared to smaller companies.

However, it's essential to conduct thorough research and consider various factors such as the company's financial health, dividend history, industry trends, and overall market conditions before making any investment decisions.

If you want to dwell deeper on dividend investing, use Equitymaster's powerful stock screener to check high dividend yield stocks and dividend growth stocks in India.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...