For investors seeking steady income and potentially long-term growth, dividend stocks can be an attractive option. Several Indian companies have demonstrated a strong track record of rewarding their shareholders with consistent dividends. As we move into FY25, some prominent names stand out for their dividend yields and financial performance. Religare Broking has identified 10 stocks with the highest dividend yields, making them attractive options for those looking to enhance their returns.

Coal India

Coal India (CIL) has emerged as a top dividend-paying stock. The company secured the first spot with a dividend yield of 7.1 per cent and a current market price (CMP) of ₹375. The company's price-to-earnings (P/E) ratio stands at 7. For the fiscal year 2025, the dividend per share (DPS) was ₹26.5, compared to ₹25.5 in FY24. In May 2025, Coal India declared a final dividend of ₹5.15 per share for FY25. The total dividend for FY25 is higher by ₹1 per share compared to the previous year. For the quarter ending March 31, 2025, Coal India reported a Profit After Tax (PAT) of ₹9,592.53 Crore, marking a strong 12% increase compared to Q4 of FY 2023–24.

Oil and Natural Gas Corporation (ONGC)

ONGC is another strong contender in the dividend stock category. ONGC has a dividend yield of 5.2 per cent with a CMP of ₹234. The P/E ratio is 8.1. ONGC maintained a steady DPS of ₹12.3 for both FY24 and FY25. The board has recommended a final dividend of ₹1.25 per share for FY25, bringing the total dividend payout for FY25 to ₹15,411 crore. ONGC shares traded ex-dividend on September 4, 2025, for the final payout of ₹1.25 per share.

REC Limited

REC reported a dividend yield of 5.1 per cent and a CMP of ₹350. With a P/E ratio of 5.5, the company announced a DPS of ₹18 for FY25, compared to ₹16 in FY24. The company announced a dividend payout of Rs 3.6 per share, taking the total dividend declared so far in FY25 to Rs 15.4 per share. In March 2025, the board of directors declared 4th interim dividend @ Rs 3.60 per equity share for the financial year 2024-25. REC has declared its 1st interim dividend of ₹4.60 per share for FY26. Additionally, the company has proposed a final dividend of ₹2.60 per share for FY25.

Tata Consultancy Services (TCS)

TCS also had a dividend yield of 4.1 per cent with a high CMP of ₹3,085. The company's P/E ratio is 22.7. TCS offered a DPS of ₹126 for FY25. Tata Consultancy Services (TCS) has declared Rs 30 per share as final dividend for FY25. The total dividend for the financial year is Rs 126 per share. TCS said its FY25 total shareholder payout stood at Rs 44,962 crore in the form of dividends. The IT major has fixed Wednesday, June 4, 2025, as the Record Date to determine the eligibility of Members for the final dividend for the financial year ending March 31, 2025.

Other Prominent Dividend Stocks

Besides the above, other companies with high dividend yields include PTC India (6.7%), Gujarat Pipavav Port (5.5%), GAIL (India) (4.3%), Power Finance Corporation (4.2%), HCL Technologies (4.1%), and Petronet LNG (3.7%).

Factors to Consider

• Dividend Yield: Indicates the income investors earn relative to the price of the shares.
• Price-to-Earnings (P/E) Ratio: Helps to evaluate the company's valuation.
• Dividend Per Share (DPS): The amount of dividend paid out for each share.
• Financial Health: Look for companies with consistent performance and strong balance sheets.

Disclaimer: It is important to note that dividend yields and stock performance are subject to market risks. This article is for informational purposes only and not intended to be investment advice. Consult with a qualified financial advisor before making any investment decisions.