shareholder return companies

If you’re someone who invests for the long term, you’ll want to know which companies in India have rewarded their shareholders the most over the past five years. These are businesses that not only pay out regular dividends but have also seen their share prices rise steadily.

In this blog, we’ll explore the companies that stand out as the top dividend-paying companies in India, and others that have proven to be strong performers in overall shareholder return. Whether you’re just starting out or are a seasoned investor, this list will give you some useful insights.

What Does Shareholder Return Mean?

Let’s start with the basics.

When you invest in a company, you typically make money in two ways:

  • Dividends – A portion of the company’s profit shared with shareholders.
  • Capital appreciation – The profit you earn if the share price increases over time.

The best shareholder return company in India usually offers a good balance of both. Some companies are known for their high dividends, while others deliver strong long-term growth. A few do both, and these are the ones we’ll focus on.

A Quick Look at the Top Performers

Here’s a snapshot of some of the leading companies that have offered attractive returns:

CompanySectorDividend Strength5-Year Return
ITC LtdFMCG/ConglomerateHighOver 120%
InfosysIT ServicesSolid130%+
Coal IndiaPSU/EnergyVery HighAround 90%
Power Grid CorpPSU/UtilitiesReliableAround 90%
TCSIT ServicesConsistent110%+
Vedanta LtdMining & MetalsHigh80–100%

Let’s dive into each one to understand why they are valued by investors.

ITC Ltd – A Turnaround Favourite

ITC was once viewed as a slow-moving stock, known mostly for its cigarette business. But in recent years, it has gained popularity for its expanding FMCG segment and impressive returns.

  • Dividend yield: Around 5%
  • Share price growth: Over 120%
  • Sector: Diversified – FMCG, hotels, paper, agri-products

Why investors like ITC: It pays a high dividend and has delivered strong price appreciation, making it a common pick when people talk about the top dividend paying company in India.

Vedanta Ltd – A High-Yield Dividend Star

Vedanta operates in the transition metals, critical minerals, energy and technology sectors. In FY25 while NIFTY Metal Index delivered nearly 1% returns making this critical minerals, transition metals, energy and tech company, the top wealth creator among NIFTY 100 companies.

Vedanta has maintained its reputation as a high-yield stock, offering a trailing twelve-month dividend yield of 9.71% in FY25. In the last fiscal year, Vedanta distributed dividends to the tune of Rs. 43.50 per share, staggered throughout the year. Since 2001, the company has declared 46 dividends. 

  and is known for its high dividend payouts.

  • Dividend yield: Often crosses 10%
  • 5-year return: Around 80–100%
  • Business segments: Zinc, aluminium, copper, steel, iron ore, power and oil & gas

Vedanta continues to be an investor favourite for regular income. That’s why it features as a top dividend paying company in India.

Coal India – Strong Dividends from a Government Giant

Coal India is a public sector undertaking and the largest coal producer in the country. While it may not seem like the most exciting stock, it is a favourite among income-seeking investors.

  • Dividend yield: 8–10%, among the highest in India
  • 5-year return: Roughly 90%

Coal India is seen as one of the best dividend paying company in India because of its generous and regular payouts.

Infosys – A Consistent Wealth Builder

Infosys is one of India’s most respected IT services firms. It’s globally known and has a reputation for professionalism and reliability.

  • Dividend frequency: Twice or more annually
  • 5-year return: More than 130%

In addition to steady dividends, Infosys has given strong long-term returns, which is why it’s counted among the best shareholder return companies in India.

Power Grid Corporation – Dependable and Steady

Power Grid, another public sector firm, is responsible for the transmission of electricity across the country. It has a stable business model that appeals to conservative investors.

  • Dividend yield: Around 5%
  • 5-year return: Around 90%

Its regular income and predictable performance make it a worthy name in the list of the top dividend paying company in India.

TCS – Growth and Stability from Tata’s Tech Arm

Tata Consultancy Services (TCS) is one of the largest and most trusted companies in the IT sector. It’s known for rewarding shareholders regularly.

  • Dividend payouts: Multiple times per year
  • 5-year return: 110%+

TCS is admired for its steady earnings and dividend history. It’s widely regarded as one of the best shareholder return company in India.

Larsen & Toubro (L&T) – Building Value Over Time

L&T is an engineering and infrastructure powerhouse. It may not offer very high dividends, but its capital growth has been impressive.

  • Dividend style: Regular, though not very high
  • 5-year return: Over 150%

Many long-term investors consider L&T one of the best shareholder return company in India, thanks to its strong fundamentals.

Hindustan Unilever (HUL) – Trusted for Steady Returns

HUL is a household name in India. Its products are everywhere — and so is its stock in many investor portfolios.

  • Dividend frequency: Regular but moderate
  • 5-year return: Around 90%

While its dividend isn’t as high as others, it’s a consistent performer. Some investors still count it among the best dividend paying company in India for its trust factor.

HDFC Bank – Long-Term Confidence

HDFC Bank has been one of the best-performing private banks in India. It offers modest dividends but excellent growth potential.

  • Dividend yield: Low to moderate
  • 5-year return: Over 100%

It’s a classic choice for investors who value long-term capital growth over short-term income, and remains a strong Best shareholder return company in india.

Reliance Industries – Focused on Future Growth

Reliance is the largest Indian company by market capitalisation, with businesses spanning oil, telecom, and retail.

  • Dividend payouts: Low to moderate
  • 5-year return: More than 170%

While it doesn’t offer high dividends, its strong capital appreciation makes it one of the biggest success stories in shareholder wealth creation.

The Bottom Line – Find What Suits You

Let’s summarise it simply:

  • For steady income, look at Coal India, Vedanta, ITC, and Power Grid – all qualify as top dividend paying company in India.
  • For growth with some income, companies like Infosys, TCS, and L&T make a strong case.
  • For long-term capital gains, HDFC Bank and Reliance are solid choices.

It’s important to choose based on your financial goals. Some investors want yearly income, while others are happy to hold shares for a long time and see their investment grow.

In either case, India’s stock market offers a range of companies that can meet your needs — whether you are after the best dividend paying company in India or the one offering the best shareholder return.