List of Best Dividend ETFs in India 2026
Dividend ETFs offer investors exposure to portfolios of dividend-paying companies through a single, exchange-traded fund that focuses on yield and income characteristics. Many dividend-oriented ETFs in India track the Nifty Dividend Opportunities 50 Index, which comprises high-yielding stocks across sectors and has delivered a ~15.8 % annualised return over five years.
Top Dividend ETFs in 2026
Dividend ETF Stock Screener
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| NameStocks (2)↓ | ↓Sub-SectorSub-Sector↓ | ↓Market CapMarket Cap↓ | ↓Close PriceClose Price↓ | ↓PE RatioPE Ratio↓ | ↓1D Return1D Return↓ | ↓1M Return1M Return↓ | ↓6M Return6M Return↓ | ↓1Y Return1Y Return↓ | ↓PB RatioPB Ratio↓ | ↓Return on EquityReturn on Equity↓ | ↓ROCEROCE↓ | ↓Dividend YieldDiv Yield↓ | ↓Debt to EquityDebt to Equity↓ | ↓Volatility vs NiftyVolatility vs Nifty↓ | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Mirae Asset BSE 500 Dividend Leaders 50 ETFDIVIDEND | EquityEquity | 7.017.01 | 37.1837.18 | -- | -0.61-0.61 | 0.000.00 | 4.534.53 | 4.534.53 | -- | -- | -- | -- | -- | 1.561.56 | |
| 2. | Nippon India ETF Nifty Dividend Opportunities 50DIVOPPBEES | EquityEquity | 5.535.53 | 83.4983.49 | -- | -0.05-0.05 | -0.38-0.38 | 9.359.35 | 6.096.09 | -- | -- | -- | 0.000.00 | -- | 1.041.04 |
Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.
Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.
Overview of Top Dividend ETFs in India
Nippon India ETF Nifty Dividend Opportunities 50
Nippon India ETF Dividend Opportunities 50 tracks the Nifty Dividend Opportunities 50 Index, investing in companies with high dividend yields from the Nifty 100 and Nifty Midcap 50 universes. The fund provides exposure to dividend-paying stocks across various sectors and market capitalisations listed on Indian exchanges.
Mirae Asset BSE 500 Dividend Leaders 50 ETF
Mirae Asset BSE 500 Dividend Leaders 50 ETF follows the BSE 500 Dividend Leaders 50 Index, focusing on companies with consistent dividend payment track records from the BSE 500 universe. The exchange-traded fund offers diversified exposure to dividend-yielding stocks across different sectors and company sizes.
What are Dividend ETFs?
Dividend ETFs are exchange-traded funds that track indices made up of companies with a consistent record of paying dividends. These funds replicate their underlying index, such as the Nifty Dividend Opportunities 50 Index, by holding the same stocks in similar proportions. The goal is to mirror the performance of a portfolio built around stable cash-generating businesses that distribute a share of their profits to shareholders. Dividend ETFs allow investors to follow dividend-oriented companies through a single, exchange-listed instrument without selecting individual high-yield stocks.
How to Invest in Dividend ETFs?
Here's how you can invest in Dividend ETFs using Tickertape -
- Create an account on the Tickertape or log in if you already have one.
- Open Tickertape Stock Screener
- Filter Dividend ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
- Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.
You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!
Features of Dividend ETFs in India
High Dividend Yield Focus
When you invest in the highest dividend ETFs in India, you're putting your money into companies that regularly pay dividends to their shareholders. These funds follow indices that pick stocks based on how much dividend they pay, how consistently they've paid it, or how well their dividends have grown over time. The companies in these funds typically share a portion of their profits with shareholders, which creates this collection of dividend-paying stocks.
Exchange-Traded Structure
You can buy and sell the highest dividend ETFs on stock exchanges like NSE and BSE whenever the market is open. Throughout the trading day, you can enter or exit your positions at real-time prices. Think of it like trading individual stocks - you have that same flexibility to respond to market conditions.
Index-Based Selection Methodology
The highest dividend ETFs track specific indices that screen companies using dividend-related criteria. These indices look at things like dividend yield, payout ratio, dividend coverage, stable earnings, and whether companies have a solid track record of paying dividends. This methodology decides which companies make the cut and how much weight they carry in the fund.
Diversified Sector Exposure
Dividend ETFs spread their investments across multiple sectors where companies tend to pay dividends. You'll typically find mature industries in the mix - banking, energy, utilities, FMCG, and manufacturing. This gives you exposure to different parts of the economy through companies that generate steady cash flows and share their profits.
Regular Portfolio Rebalancing
These ETFs rebalance their portfolios on a set schedule based on the underlying index. When they rebalance, they bring in companies that now meet the dividend criteria and drop those that don't anymore. They also adjust the weightages to reflect changes in dividend yields, company performance, and market caps.
Transparent Holdings Disclosure
Dividend ETFs regularly show you exactly which dividend-paying companies they hold. You can see the top holdings, how they're allocated across sectors, what dividend yields the constituent stocks offer, and how much weight each company carries. This transparency lets you understand what you're actually invested in and what kind of income potential the fund has.
Advantages of Investing in Dividend ETFs in India
Regular Income Potential
Since dividend ETFs hold companies that pay dividends regularly, they can create an income stream for you. When the companies in the fund declare dividends, the ETF collects those payments. Depending on which plan you choose, some dividend ETFs distribute this income to you, while others put it back into the fund.
Quality Company Exposure
Companies that consistently pay dividends usually show financial stability and have mature business models. They generate enough cash flow to pay out profits to shareholders while still running their operations. When you invest in dividend ETFs, you get exposure to these quality companies that have proven track records of profitability and treat their shareholders well.
Lower Volatility Characteristics
Historically, dividend-paying stocks have shown relatively lower volatility than growth stocks or broader market indices during certain market conditions. Companies that maintain stable dividend payments often operate in mature sectors with predictable cash flows. This can lead to steadier performance when markets get turbulent.
Value Investing Exposure
The highest dividend ETFs often lean towards value investing because they focus on companies with higher dividend yields. These companies may trade at lower valuations compared to growth stocks. By focusing on dividend yield, the fund automatically screens for stocks that give you income along with potential price appreciation.
Tax-Efficient Structure
The highest dividend ETFs that invest mainly in equity shares qualify as equity-oriented funds for tax purposes. If you hold them long-term, capital gains above ₹1.25 lakh face 12.5% tax, while short-term gains attract 20% tax. This equity tax treatment can work out better than what you'd pay on debt instruments or fixed-income alternatives.
Portfolio Diversification Benefits
When you add dividend ETFs to your investment portfolio, you bring in a different investment style compared to growth-focused or market-cap-weighted indices. The dividend focus creates a distinct risk-return profile that can diversify portfolios that lean heavily towards growth stocks or specific sectors.
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Risks of Investing in Dividend ETFs in India
Dividend Cut Risk
Companies can reduce or stop paying dividends when they face financial stress, business downturns, or when management decides to hold onto cash. When companies in the fund cut dividends, they may get kicked out of the index during the next rebalancing. This can cause capital losses if their stock prices drop before the ETF sells them.
Sectoral Concentration
Companies that pay dividends often cluster in specific sectors like utilities, banking, energy, and FMCG. This creates sectoral concentration in dividend ETFs, which makes them vulnerable to sector-specific problems, regulatory changes, or cyclical downturns that hit these particular industries.
Lower Growth Potential
Companies that pay high dividends often distribute large portions of their profits to shareholders instead of reinvesting for growth. This can limit how much they can expand compared to growth companies that put their earnings back into the business. During market phases that favor high-growth stocks, dividend ETFs may lag behind.
Market Volatility Exposure
Dividend ETF prices move with broader market swings and changes in how the market values the companies they hold. Market corrections, economic slowdowns, or sector-specific troubles can cause significant short-term swings in the fund's net asset value, even though it focuses on dividend-paying stocks.
Yield Trap Risk
Sometimes a high dividend yield signals trouble rather than strength. When a company's stock price falls, it can artificially push up the dividend yield temporarily before the company cuts its payout. Dividend ETFs that follow strict yield-based selection might accidentally include these troubled companies until the next index rebalancing happens.
Interest Rate Sensitivity
Dividend-paying stocks compete with fixed-income instruments for investor money. When interest rates go up, fixed deposits and bonds become more attractive, which can cause dividend stocks to underperform. This interest rate sensitivity can hurt dividend ETF performance when central banks tighten monetary policy.
Factors to Consider Before Investing in Dividend ETFs
Investment Objective Alignment
Dividend ETFs serve different investment objectives than pure growth funds. If you're looking for regular income potential or want exposure to mature, cash-generating companies, dividend ETFs might align well with your goals. But if you're chasing aggressive capital appreciation, the dividend focus might hold you back from your objectives.
Underlying Index Methodology
Different dividend ETFs track indices with different selection criteria. Some focus purely on dividend yield, others look at dividend growth or payout consistency, and some use a combination approach. The index methodology determines which companies get included and shapes the fund's risk-return characteristics.
Distribution vs Growth Option
Dividend ETFs typically offer both distribution and growth plan options. Distribution plans pay out the collected dividends to you, creating cash flows but reducing the corpus. Growth plans reinvest the dividends back into the fund, letting your money compound but giving you no regular payouts. Your plan choice affects how you realise returns.
Dividend Yield Levels
The overall dividend yield of a dividend paying ETF India depends on the yields of its constituent companies and the index methodology it follows. Higher yields might point to value opportunities or potential distress. Lower yields might reflect quality companies with moderate payout ratios. Looking at current yield levels compared to historical averages gives you context for your evaluation.
Taxation on Dividend ETFs
Dividend ETFs attract capital gains tax depending on how long the units are held. The tax outcome differs for short-term and long-term gains.
| Holding Period | Tax Treatment |
|---|---|
| Short-Term (< 12 months ) | Gains taxed at a flat rate of 20% (increased from the previous 15%). |
| Long-Term (> 12 months) | Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year. |
Conclusion
Dividend ETFs provide a simple way to follow companies known for steady payouts and predictable cash flows. Their performance depends on dividend policies, sector trends, and the broader earnings cycle, making them a useful lens to study income-focused segments of the market. If you want to explore dividend-oriented stocks or compare yield trends across sectors, the Tickertape Stock Screener helps you filter companies using transparent, data-driven metrics for clearer research.
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Frequently Asked Questions on Dividend ETFs
What is a Dividend ETF?
A Dividend ETF is an exchange-traded fund that invests in companies that regularly pay dividends. These funds track indices comprising dividend-paying stocks selected using factors like dividend yield, payout consistency, or dividend growth. They provide exposure to income-generating equities across sectors.Which Dividend ETF is the best?
As of 15th January 2026, some of the best Dividend ETFs in India by market cap include: Nippon India ETF Nifty Dividend Opportunities 50; Mirae Asset BSE 500 Dividend Leaders 50 ETF.What is the difference between dividend and growth ETFs?
Dividend ETFs invest in companies that pay regular dividends, usually mature businesses with stable cash flows. Growth ETFs invest in companies that reinvest profits to expand instead of distributing dividends. Dividend ETFs offer income potential, while growth ETFs focus on capital appreciation.What is a dividend yield?
Dividend yield is the annual dividend per share divided by the stock price, expressed as a percentage. For example, a ₹100 stock paying ₹5 yearly dividend has a 5% yield. Dividend ETFs often hold companies with relatively higher yields.Do all Dividend ETFs pay dividends to investors?
Dividend ETFs have two plans. Distribution/dividend plans pay out dividends collected from holdings. Growth plans reinvest collected dividends within the fund, aiding compounding but without cash payouts.What indices do Dividend ETFs track in India?
Dividend ETFs in India track indices such as Nifty Dividend Opportunities 50 and BSE 500 Dividend Leaders 50. Each index uses its own rules to select and weight dividend-paying stocks from broader market universes.Are Dividend ETFs the same as dividend mutual funds?
Both invest in dividend-paying companies, but ETFs trade intraday on exchanges and typically have lower expense ratios. Mutual funds transact at end-of-day NAV and may be actively managed.Can I reinvest dividends from Dividend ETFs?
Growth plans reinvest dividends automatically, increasing NAV. Distribution plans pay out dividends, which investors may manually reinvest by buying ETF units, subject to brokerage costs.How to sell dividend ETFs?
Dividend ETFs can be sold on the stock exchange via your demat account. You need to place a sell order during market hours, after which the transaction settles normally.
