10 Highest Dividend Yield Stocks in August 2025

Looking for Reliable Passive Income? Start with These Dividend Powerhouses

As the Indian stock market soars to new record highs in 2025, the rush of investors is mountain toward high dividend yield stocks, particularly those that offer stable dividends backed by good fundamentals and, in some cases, sovereign guarantees. Whether you are building a long-term income portfolio or just want to ensure steady monthly cash flows, August 2025 is offering a terrific roster of dividend-paying giants led by large-cap Nifty 50 stocks and quality dividend paying PSUs. 

In this article, we rank the 10 highest dividend yield stocks for August 2025, based on their trailing 12-month (TTM) dividend yield and current market price. The stocks have elements of a safe income, quality governance, and, more importantly, future value.

What is Dividend Yield?

Dividend Yield = (Annual Dividend ÷ Current Share Price) × 100

It tells you how much income you earn per ₹100 invested, purely from dividends—not capital gains.

In 2025, dividend yields of 5–11% have comfortably beaten FD rates and debt funds, especially for long-term investors in low-tax brackets.

Top 10 Highest Dividend Yield Stocks in August 2025 (NSE Listed)

Quick Summary: Highest Dividend Paying Stocks in Nifty 50 Today

Among Nifty 50 companies, the top dividend yield contributors as of August 2025 are:

• Indian Oil Corporation (IOCL) – ~11%
  
  

• Coal India Ltd – ~6.6%
  
  

• Oil & Natural Gas Corp (ONGC) – ~5.5%
  
  

• HCL Technologies – ~3.7%
  
  

These stocks offer not only high payouts but also strong business models and government backing.

In-Depth Look: Key Dividend Stocks to Watch

1. Indian Oil Corporation (IOCL) - 10.96%

A perennial dividend champion, IOCL has strong refining and marketing margins. With its state ownership and a cash-rich balance sheet, it's an obvious choice for passive income.

2. Vedanta Ltd - 9.4%

Vedanta may be outside the Nifty 50, but it has consistently delivered big on dividends. Great for yield hunters with the stomach for some volatility and risks with debt.

3. Chennai Petroleum (CPCL) - 9.0%

The darkest horse in dividend paddock. CPCL can deliver very high yields, especially during periods of high crude refining cycles. Best for investors with an outlook beyond large caps.

4. Coal India Ltd - 6.6%

Coal India is one of India’s most reliable dividend stocks, even declaring its August 2025 dividend. It's a PSU income favourite, presenting good cash flows with no debt.

5. ONGC -5.5%

India's oil exploration behemoth. ONGC has an extensive track record of paying dividends and remains resolute in continuing its aim while our global crude prices remain stable too, with its strong reserve.

FAQs: Dividend Investing in August 2025

Q1. What is the best high-dividend stock to buy in August 2025?

Indian Oil Corporation (IOCL) offers the highest dividend yield (10.96%) and remains one of the most consistent PSU payers.

Q2. Are dividends taxed in India in 2025?

Yes, dividends are taxed as per your income slab under the Income Tax Act. TDS is also applicable for resident investors if the dividend exceeds ₹5,000 per company.

Q3. Can I sell the stock after getting the dividend?

Yes, but ensure you hold the stock before the ex-dividend date. Selling after that won't affect your dividend eligibility.

Q4. Which sectors offer the best dividend yields in India?

Energy, mining, and PSU finance sectors typically offer the highest dividend yields in India.

Q5. How often are dividends paid?

It varies. Some companies pay quarterly (like IOCL, HCL Tech), others semi-annually or annually (like HPCL, NALCO).

Tips for Smart Dividend Investing in 2025

• Always check ex-dividend date before buying
  
  

• Review payout history and debt levels
  
  

• Use dividend yield and business fundamentals to screen stocks
  
  

• Avoid short-term trades just for dividends unless part of a broader strategy
  
  

• Consider AI tools and language models to automate dividend tracking
  
  

Risk Factors to Keep in Mind

• One-time dividends may not be sustainable
  
  

• Commodity-linked profits can cause dividend fluctuations
  
  

• Government policy changes can impact PSU dividend mandates
  
  

• High yields may reflect falling stock prices, not strong performance
  
  

Final Takeaway: Build Smart, Yield-Focused Portfolios

If you’re aiming to create a passive income stream, the August 2025 dividend landscape looks promising. Here's how you can align your picks:

The right dividend stocks can help you beat inflation, preserve capital, and build consistent cash flows in today’s volatile environment.

Also Read: Intel to Cut 24,000 Jobs in 2025, Cancel Major Factory Projects in Global Restructuring Push