How to earn passive income from Stocks in India? Steps to find high dividend paying stock.
- Kiran S N
- Nov 3
- 2 min read
Who doesn’t like the idea of earning a regular income from their investments without selling a single share? You’re not trading daily or chasing momentum; your money works quietly in the background, paying you regular dividends.
Step 1: Go to the “Screens” Page on Screener
Once you log in to Screener, head over to the Screens section. This is where you can build your own custom screen, a set of filters that help you shortlist only those companies that meet your dividend criteria.
Here’s the query we’ll use:
Step 2: Why Each Filter Matters
Let’s break down what each part means and why it’s useful:
Dividend yield > 3% This helps you focus on companies offering solid income potential, better than most fixed deposits or savings accounts.
An average 5-year dividend > 3% ensures the company has been consistent with payouts, not just one lucky year of dividends.
Return on Equity (ROE) > 12% A high ROE means the company uses shareholders’ funds efficiently to generate profits, a sign of quality management.
Net profit > 100 Screens out smaller, unstable firms. Strong profits are needed to support reliable dividends.
Down from 52-week high > 10% Even good companies face short-term corrections. This can help you find fundamentally strong stocks that are currently available at a discount.
Dividend last year > 1000 & Dividend preceding year > 1000 Confirms that the company has been paying meaningful dividends for at least two consecutive years.... not just a one-time payout.
Step 3: Run the Query and Study the Results
Click “Run this query”, and Screener will instantly generate a list of companies that match these conditions. You now have a shortlist of high dividend-paying stocks in India....your first step towards building a passive income portfolio.
Step 4: Do a Deeper Dive Before You Invest
This screen is just a discovery tool. Before investing, it’s important to study each company’s financial statements, growth potential, debt levels, and cash flow.
A high dividend yield doesn’t automatically mean a great investment...sometimes, yields rise because the share price has fallen for valid reasons. Always check whether the business itself is still strong and growing.
Final Thoughts
Building a portfolio of dividend-paying stocks in India is one of the simplest ways to generate steady income while staying invested in quality companies.
Tools like Screener.in make the process simple, they help you identify potential opportunities backed by real data. Use this screen as your starting point, add your own research, and you’ll be well on your way to creating a passive income portfolio that grows with time.
Disclaimer: This content is for educational purposes only; please conduct personal research and consult a qualified investment advisor before making any investment decisions.
Want to read more?
Subscribe to finsightsbysquareleague.com to keep reading this exclusive post.