Top 5 Dividend-paying Public Sector companies


With the market being highly volatile on the pandemic-induced disruptions and other geopolitical tensions, we, because of our vested interest in online investing, have realised that the government-backed public sector units provide consistent returns on investment in all situations.

Keeping the same factor in mind, here is the list of the top five dividend paying stocks in India:




BPCL Rs 8.25 10.02%
PFC Rs 2.94 10.91%
REC Rs 6 12.96%
NMDC Rs 1.94 6.14%
COAL INDIA RS 4.38                         9.60%


Bharat Petroleum Corp. Ltd. is a major player in the Indian petroleum industry. Petroleum and petroleum-related products are explored, produced, and sold by the corporation.

BPCL’s retail business section is in charge of selling gasoline, diesel, and kerosene.

The firm also distributes aviation turbine fuel (ATF) to its airline customers and a broad variety of automobile engines, gear, transmission, specialised oils, and greases.

It is a public sector undertaking that routinely pays stockholders excellent dividends. It’s a great stock to have in your portfolio. At these prices, the BPCL share appears to be a good investment.


Power Financing Corporation Limited, a non-banking finance firm, serves India’s power sector with financial products, consultancy services, and other services. Some analysts feel the stock is selling much below its potential and has more room for growth.

It is one of the PSU stocks with a long history of paying dividends and a strong dividend yield.

Furthermore, the company is an excellent contender for one’s portfolio owing to its recent success.


In India, a state financial agency, REC Limited, offers finance for electricity production, transmission, and distribution projects. It generally provides term loans, short-term loans, and medium-term loans.

It provides power to both government and private sector power utilities. Rural Electrification Corporation Limited was its previous name until October 2018, when it changed to REC Limited. REC Limited is situated in Gurugram, India, founded in 1969. Power Finance Corporation Limited has a subsidiary called REC Limited.

When examined over five years, the stock has grown at 14.7 per cent each year.

It is one of the few stocks that pay dividends regularly.


In India, NMDC Limited and its subsidiaries explore and manufacture a variety of metals, substances and ores, which are all explored by the firm.

Iron ore is also exported to Japan and South Korea. National Mineral Development Corporation Limited was the company’s previous name.

The stock has consistently increased its earnings.

It is one of the PSUs noted for dishing out generous dividends to stockholders.


Coal India Limited and its subsidiaries manufacture and sell coal worldwide. Coking coal is primarily utilised in steelmaking, metallurgical industries, and hard coke production. In addition, semi-coking coal is used as blendable coal in steelmaking, merchant coke production, and other metallurgical industries.

For the past five years, the Coal India stock has grown at above 10% annually. However, analysts still believe the stock has a lot more upside.

It is on the list of PSUs that pay dividends.


The stocks mentioned above are few among the many high-yield dividend PSUs. However, careful analysis and timely picking of these stocks for online investing can consistently provide reasonable and safe returns.