Vedanta, Coal India to Jagran Prakashan: 5 Dividend Stocks That Outperformed Bank FDs in FY25

Market Performance

Fixed deposits (FDs) have always been India’s go-to for safe and steady returns. Axis Bank and ICICI Bank are offering nearly 6.6% on three-year deposits, while SBI’s rate is slightly lower at 6.15%.

But in FY25, the stock market quietly told a different story. Several listed companies not only matched but comfortably beat these FD returns through dividends alone. These payouts came even as share prices saw mixed performances.

Let’s take a closer look at the five dividend-paying stocks—Vedanta, Jagran Prakashan, MSTC, PTC India, and Coal India—that outshined bank FDs in FY25.

Vedanta: Dividend Giant with a Changing Yield

Vedanta remained in the spotlight with its generous payouts.

• Dividend declared in FY25: ₹43.50 per share (multiple interim payouts)
• Dividend yield: 9.8%
• Stock performance: +1% in the past year, -1.5% in the last six months

While still attractive, Vedanta’s yield was lower compared to its bumper 29.7% in FY23 and 23% in FY24. That sharp drop came as share prices moved up while payouts moderated. Yet, Vedanta continues to reflect strong shareholder focus.

Jagran Prakashan: High Yield, Tough Stock Performance

Jagran Prakashan turned heads with its healthy dividend yield, even as its stock chart told a different story.

• Dividend declared in FY25: ₹6 per share (interim, May 2025)
• Dividend yield: 8.32% (based on share price of ₹72.11)
• Stock performance: -23% in the past year, +5% in the last six months

The dividend provided investors with some cushion against the otherwise weak performance in the stock.

MSTC: Big Payouts Amid Price Volatility

MSTC also featured strongly on the dividend map.

• Dividend declared in FY25: Nearly ₹40.50 per share (multiple interim payouts, last at ₹4.50 in April 2025)
• Dividend yield: 7.5–8%
• Stock performance: -25% in the past year, +13% in the last six months

Despite sharp corrections earlier, MSTC’s recovery in recent months has brought investor attention back.

PTC India: Consistency in Cash Rewards

PTC India kept up its reputation of regular payouts to shareholders.

• Dividend declared in FY25: ₹11.70 per share (₹5 interim + ₹6.70 final)
• Dividend yield: 7.6–8% (at share price of ₹174–175)
• Stock performance: -27% in the past year, +10% in the last six months

The numbers underline strong cash flow backing, even as the stock struggled for most of the year.

Coal India: PSU Dividend Leader Holds Its Ground

Coal India once again stood tall among PSUs with steady payouts.

• Dividend declared in FY25: ₹26.50 per share (vs ₹25.50 in FY24)
• Dividend yield: 7.1%
• Stock performance: -18% in the past year, +1% in the last six months

Coal India continues to hold its place as one of India’s most reliable dividend players, despite market pressure on its stock.

Key Takeaways

Dividend yields in FY25 painted a clear picture—select stocks beat fixed deposits comfortably. But unlike FDs, dividends are not guaranteed. They depend on:

• Company earnings and cash flows
• Share price movements (as yield is price-linked)
• Broader economic conditions

While Vedanta and Coal India offered stability among large caps, Jagran Prakashan, MSTC, and PTC India provided attractive yields in the mid-cap space.

Summary

FY25 highlighted a reality every market participant knows: equity markets come with risks, but they can also deliver higher returns than traditional FDs. Dividend-paying stocks once again proved that steady cash rewards remain a key attraction for investors looking beyond bank deposits.

Stocks like Vedanta, Jagran Prakashan, MSTC, PTC India, and Coal India showed that dividends can beat bank FDs—even in a year when their share prices didn’t always cooperate.