Top Dividend Stocks to Watch in H2 2025: Income + Growth for Smart Investors
With market conditions staying unpredictable and inflation always in the background, more Indian investors are now turning to dividend stocks. These are companies that share a part of their profit regularly with shareholders, helping investors earn even when markets are flat.
Whether you’re just starting out or already active in the stock market, this list of dividend-paying companies will help you make better decisions for the rest of 2025.
In this guide from Entrepreneurs, we’ll explain what dividend stocks are, why they matter, and which Indian companies are offering strong dividends in H2 2025.
What Are Dividend Stocks?
Dividend stocks are shares of companies that pay you a part of their earnings. This is called a dividend. It can be paid monthly, quarterly, or yearly. You still own the stock and can sell it later, but in the meantime, you get a steady income from the company.
For many investors, this is like earning rent from a property—without the stress of tenants.
Why Consider Dividend Stocks?
- Steady income: Perfect for retired people or long-term investors.
- Lower risk: These are often large, stable companies.
- Tax-efficient: Dividends up to ₹5,000 in a financial year are tax-free in India when received from Indian companies.
Top 5 Dividend Stocks to Watch in H2 2025
1. Coal India Ltd
Coal India is a government-owned mining giant and a regular dividend payer. In FY25, the company declared strong dividends with a dividend yield of over 6.5%. With stable cash flow and strong demand, Coal India remains a go-to stock for dividend income.
Ideal for: Long-term investors looking for consistent payouts.
2. Power Finance Corporation (PFC)
PFC is a PSU (Public Sector Undertaking) that finances power projects across India. It recently posted ₹8,358 crore profit in Q4 and declared a solid dividend.
Why watch it? The company is financially sound and gives high dividends regularly.
3. MRF Ltd
MRF, India’s most trusted tyre brand, announced a dividend of ₹229 per share in May 2025. It also showed 31% growth in profits, which shows the business is on strong footing.
High share price, but a premium pick for dividend lovers.
4. Page Industries (Jockey India)
Known for innerwear and activewear, Page Industries declared a ₹200 per share dividend in Q1 of FY25. Despite being in the consumer segment, it offers great returns with brand loyalty and consistent growth.
Balanced option with growth + income.
5. IndiGo (InterGlobe Aviation)
Yes, even an airline! IndiGo surprised investors with ₹10 dividend per share after reporting a 62% jump in profits. As travel rebounds post-pandemic, this stock may be worth holding for income and potential growth.
Great for medium-term investors who believe in India’s travel boom.
Things to Check Before Buying Dividend Stocks
| Checklist | Why It Matters |
| Dividend History | Shows consistency and commitment |
| Payout Ratio | Not too high, or the company may struggle later |
| Company Profit Growth | To ensure future dividends remain strong |
| Sector Stability | Prefer essential services or evergreen sectors |
Final Words
Dividend stocks are not just for old-school investors anymore. In 2025, they offer passive income, lower risk, and even growth potential. With inflation always a concern, earning regular returns can keep your money working for you.
If you’re new to the stock market, start small—buy shares in one or two companies and track their performance. Over time, you’ll build a solid portfolio that pays you back consistently.
For more stock tips, business insights, and money-smart ideas, keep following Entrepreneurs — your partner in building wealth, the smart and steady way.
