Fixed deposits (FDs) remain one of the most popular investment choices in India due to their safety and assured returns. At present, popular banks like Axis Bank and ICICI Bank are offering around 6.6 percent on three-year deposits, while the biggest PSU lender State Bank of India offers about 6.15 percent. However, in FY25, several listed companies have delivered dividend yields comfortably above these levels, making them attractive options for investors seeking regular income.
Top stocks with dividends that outshine bank FDs
Vedanta declared total dividends of ₹43.50 per share in FY25 through multiple interim payouts, translating into a dividend yield of 9.8 percent. This reflects its strong shareholder focus, although the yield is lower than FY23 and FY24 when it stood at 29.7 percent and 23 percent respectively, thanks to higher payouts and a lower stock price. The scrip has risen 1 percent over the past year but slipped 1.5 percent in the last six months.
Jagran Prakashan’s dividend yield stood at 8.32 percent for FY25, based on its last payout and current share price of ₹72.11. The company declared an interim dividend of ₹6 per share in May 2025, which contributed to its robust yield. However, the stock has struggled in the past year, falling 23 percent, though it managed a 5 percent gain over the last six months.
MSTC delivered an impressive dividend payout of nearly ₹40.50 per share in FY25, resulting in a dividend yield of around 7.5–8 percent at current market levels. The company distributed dividends through multiple interim payments, the latest being ₹4.50 in April 2025. While the stock has lost 25 percent in the past year, it has rebounded 13 percent in the last six months.
PTC India rewarded shareholders with a total dividend of ₹11.70 per share in FY25, comprising ₹5.00 interim and ₹6.70 final dividend. At a market price of around ₹174-175, this translates into a yield of 7.6–8 percent. The company’s consistent dividend payouts highlight its strong cash flows and commitment to investors. However, the stock fell 27 percent over the past year, though it has regained 10 percent in the last six months.
Coal India has maintained its reputation as a PSU dividend giant. For FY25, it declared dividends totaling ₹26.50 per share, up from ₹25.50 in FY24, translating into a yield of about 7.1 percent. The stock has been under pressure, falling 18 percent in the last year, though it edged up by 1 percent in the last six months.
What Investors Should Keep in Mind
Dividend yields are highly dependent on stock prices, meaning the yield can change even if payouts remain the same. Unlike fixed deposits, dividends are not guaranteed and can be influenced by company performance, cash flows, or broader economic conditions. Investors should also compare post-tax returns, as dividend taxation and transaction costs can reduce effective yields.
For investors willing to take on some equity risk in exchange for higher returns than fixed deposits, dividend-paying stocks remain a strong option. Vedanta and Coal India offer stability among large caps, while Jagran Prakashan, MSTC, and PTC India provide attractive yields in the mid-cap space. As always, investors should monitor financial results and market prices before making long-term decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
