Introduction
Dividend-paying stocks are a smart choice for investors looking to earn passive income while holding strong, long-term assets. In 2025, the Indian stock market continues to offer several high-dividend-yield stocks trading under ₹500 — making them accessible for small and retail investors.
These stocks not only provide consistent income through dividends but also have the potential for capital appreciation over time. This blog highlights the best high-dividend stocks in India under ₹500 that are worth watching in 2025.
What Are Dividend Stocks? – Free Recharge
Dividend stocks are shares of companies that distribute a portion of their profits to shareholders in the form of dividends. High-dividend stocks are especially attractive to conservative investors seeking stable income in addition to market returns.
Key benefits of dividend stocks:
- Regular passive income
- Less volatility during market downturns
- Suitable for long-term portfolio building
Best High-Dividend Stocks Under ₹500 (2025 List)
Here are some of the most reliable and affordable dividend-paying stocks in India under ₹500 per share:
- Coal India Ltd
- Sector: Mining & Energy
- Approx. Share Price: ₹400
- Dividend Yield: Over 7 percent
- Reason to Watch: Government-owned, consistent profits, strong dividend history
- Hindustan Petroleum Corporation Ltd (HPCL)
- Sector: Oil & Gas
- Approx. Share Price: ₹470
- Dividend Yield: 6 to 7 percent
- Reason to Watch: Strong fundamentals, regular payouts, government-backed
- REC Ltd (Rural Electrification Corporation)
- Sector: Finance & Infrastructure
- Approx. Share Price: ₹490
- Dividend Yield: 5 to 6 percent
- Reason to Watch: High dividend history, consistent financials, PSU status
- National Aluminium Company (NALCO)
- Sector: Metals & Mining
- Approx. Share Price: ₹130
- Dividend Yield: Around 6 percent
- Reason to Watch: Debt-free company, solid cash reserves, regular dividends
- NMDC Ltd
- Sector: Mining & Steel
- Approx. Share Price: ₹180
- Dividend Yield: 5 to 6 percent
- Reason to Watch: Strong cash flows, stable operations, good government support
How to Choose the Right Dividend Stock
When selecting dividend stocks under ₹500, look for:
- High dividend yield (over 4 percent)
- Stable and growing earnings
- Low debt and strong balance sheet
- Government backing or market leadership
- History of consistent dividend payments
Final Thoughts
High-dividend stocks under ₹500 are ideal for investors with limited capital but long-term goals. Whether you’re a beginner or a conservative investor, adding a few of these stocks to your portfolio can help generate steady income while keeping the investment affordable.
In 2025, with rising market uncertainty, holding dividend-paying companies that reward shareholders regularly is a smart strategy. Keep watching these stocks and consider SIP-style investing to benefit from compounding over time.