As tensions rise between India and Pakistan, uncertainty looms over Dalal Street, leaving investors in a cautious state. During such unpredictable times, many turn to dividend stocks for peace of mind, seeking steady cash flow when market prices fluctuate. With the potential for military conflict increasing, focusing on dividends can be more appealing than chasing capital gains. For those interested in dividend opportunities, here are five noteworthy stocks to keep an eye on in May 2025.

Top Dividend Stocks to Watch

1. Oracle Financial Services

Oracle Financial Services Software has made headlines by approving an impressive interim dividend of Rs 265 per share for FY25, with the record date set for May 8, 2025. This marks the largest dividend payout the company has issued in nearly ten years, following a Rs 485 dividend back in 2014.

As a subsidiary of Oracle Corporation, this firm provides a broad spectrum of products and services, including software solutions, consulting, and IT infrastructure management. The company has a solid track record, having declared 15 dividends since 2003, including a Rs 240 dividend last year, up from Rs 225 in FY23.

2. ABB India

Next up is ABB India, a prominent player in the heavy electrical equipment sector. For FY25, the company has announced a final dividend of Rs 33.5 per share, with a record date of May 3, 2025.

Known for its strong reputation in Indian infrastructure, ABB operates across four key segments: electrification, process automation, motion, and robotics. With 25 dividends issued since 2003, ABB is a reliable choice for dividend-seeking investors.

3. Havells India

Havells India is another notable mention. For the 2024-25 fiscal year, the company declared a final dividend of Rs 6 per share, which equates to 600%, alongside an interim dividend of Rs 4 earlier in FY25. The record date for this final dividend is set for May 25, 2025.

As a leading Fast-Moving Electrical Goods (FMEG) company, Havells has consistently rewarded its shareholders, with 32 dividends declared since 2003. The firm offers an extensive product range encompassing over 20,000 active SKUs across various categories.

4. Infosys

Infosys, India’s second-largest IT services provider, has declared a final dividend of Rs 22 per share following its March quarter results, with a record date of May 30, 2025. Last October, the company paid a Rs 21 dividend, and in May 2024, it distributed Rs 29 per share.

With a history of 49 dividends since 2002, Infosys generates 57% of its revenue from digital services while the rest comes from traditional offerings. The company’s expertise includes consulting, technology, and innovative digital services, serving around 185 Fortune 500 companies.

5. KSB Ltd

Lastly, KSB Ltd has announced a final dividend of Rs 4 for FY25, with a record date of May 2, 2025. KSB has demonstrated a consistent commitment to dividend payouts, declaring a Rs 17.5 final dividend as recently as June 2024.

Specializing in pumps, valves, and fluid handling systems, KSB has been a leader in its field since 1871, operating in over 150 countries.

Conclusion

Investing in dividend-paying stocks can offer both benefits and drawbacks. On the upside, these investments provide a reliable income stream through regular payouts, making them particularly appealing to retirees. However, it’s essential to weigh the potential downsides, such as the possibility that companies prioritizing dividends may have less capital for reinvestment, potentially limiting long-term growth prospects.

When considering dividend stocks, investors should also evaluate factors like corporate governance, payout reliability, and growth potential to ensure their investments align with their overall financial goals and risk tolerance.

Happy investing!