As we step into 2025 amidst inflationary pressures and political uncertainties, global markets are set to a volatility, prompting investors to keep a close look on economic trends and central bank decisions. In this uncertainty, a strategic focus should be on dividend-paying stocks combined with **defensive stocks** in the FMCG sector emerges as a strong investment approach. Dividend-paying stocks provide a reliable income stream, ensuring financial stability during market volatility. These stocks typically represent well-established companies with strong fundamentals like cash flows, delivering consistent returns even when capital appreciation slows. Also, defensive stocks, particularly in the FMCG sector, excel during economic downturns by catering to essential consumer needs, maintaining stable demand regardless of broader market conditions. By combining these two characteristics—dividend reliability and defensive resilience—investors can build a powerful portfolio that prioritizes both steady income and capital preservation. This balanced strategy is especially valuable for navigating economic uncertainties. To help you explore this approach, we present the **top dividend-paying stocks in the BSE FMCG Index, ranked by dividend yield, offering a blend of stability and income growth potential.

1 VST Industries
 VST Industries specializes in manufacturing and trading tobacco-containing cigarettes and unmanufactured tobacco products. Its well-known brands include Total, Editions, Charms, Special, Moments, Total Active Mint, and Total Royal Twist. As part of its ambitious "Roadmap 2030", the company is committed to driving sustainability and growth. It plans to achieve 50% renewable energy integration into its energy mix by FY30, underscoring its dedication to environmental responsibility. On the growth front, VST Industries is expanding its brand portfolio by focusing on innovative product launches in both the mainstream premium and emerging segments, staying ahead in a competitive market. For additional information, check out the VST Industries company fact sheet and quarterly results* for a deeper dive into its performance and strategies. Trading at Rs 313.8 intraday on 17 January 2025, VST Industries leads the list with a dividend yield of 4.3%.This makes it one of the most attractive FMCG stocks for dividend-focused investors. The company has been paying dividends since 1997.
Since 2001, it has declared over 24 dividends. For FY24, VST Industries paid out final dividend of Rs 150 per share.

2 ITC
ITC Limited has built a remarkable reputation for consistent dividend payouts, maintaining an unbroken track record since 1994. This commitment to rewarding shareholders highlights its investor-centric approach. The company follows a dynamic capital allocation strategy, aiming to distribute 80-85% of its post-tax profits as dividends. As one of India’s top diversified conglomerates, ITC operates across multiple sectors, including FMCG, hotels, paperboards and packaging, agribusiness, and information technology. Its FMCG division remains a major revenue driver, boasting well-known brands such as Aashirvaad, Sunfeast, Bingo!, Classmate, and Fiama. Looking ahead, ITC plans to invest ₹200 billion over the next five years to drive expansion, with a strong emphasis on growing its FMCG, paperboards, and packaging businesses. The company is also accelerating digital transformation efforts and strengthening its agribusiness segment. For more details, refer to the ITC company fact sheet and quarterly results.As of January 17, 2025, ITC was trading at ₹436 per share, with a dividend yield of 3.2%. The company has consistently outperformed many of its peers in terms of dividend payouts, making it a preferred choice for income-focused investors.

3 Sula Vineyards
Founded in 1997, Sula Vineyards is one of India's leading wine producers, headquartered in Nashik, Maharashtra—India’s premier wine region. The company has been instrumental in shaping the country’s wine industry and is widely recognized for its diverse portfolio of premium wines.Sula offers an extensive selection of red, white, sparkling, and dessert wines, crafted from grape varieties grown in its Nashik vineyards and sourced from other key wine-producing regions across India.Looking ahead, Sula Vineyards plans to open its fifth tasting room in the second half of FY25. Additionally, the company has announced the development of a 30-room resort at York Winery, expected to be completed in 2026. The resort will be built by a third party and leased to Sula Vineyards.For more details, refer to the Sula Vineyards company fact sheet and quarterly results.As of January 17, 2025, the stock was trading at ₹379 per share, offering a dividend yield of 2.2%. Since its market debut in 2023, Sula Vineyards has declared three dividends, with an equity dividend of ₹8.5 per share in the past 12 months.

4 Avadh Sugar & Energy
Avadh Sugar & Energy is a significant player in India's sugar industry, engaged in the production of sugar and its derivatives, including ethanol and renewable energy. With multiple sugar mills, distilleries, and co-generation plants, the company operates across key segments such as sugar manufacturing, ethanol production, and power generation from bagasse.Looking ahead, Avadh Sugar & Energy aims to strengthen its market position by expanding production capacity, boosting ethanol output, and leveraging the growing demand for renewable energy and biofuels.As of January 17, 2025, the company's stock was trading at Rs 439, offering a dividend yield of 2.3%. Exchange data shows that the company has declared seven dividends since 2018, with an equity dividend of Rs 10 per share announced in the past 12 months.For more information, refer to the Avadh Sugar & Energy company fact sheet and quarterly reports.

5 Colgate-Palmolive
A key player in the FMCG sector, Colgate-Palmolive India Ltd. is widely recognized for its oral care products, particularly its flagship Colgate toothpaste. As a subsidiary of Colgate-Palmolive Company, USA, the brand has a strong foothold in India's consumer goods market.The company remains dedicated to premium innovation within its core businesses while strategically expanding into high-growth markets. On the sustainability front, Colgate-Palmolive has set ambitious environmental targets, aiming to cut greenhouse gas emissions by 30% by 2025 and 50% by 2030. Additionally, it seeks to transition to 100% renewable electricity across its global operations by 2030.Colgate-Palmolive India has a consistent track record of rewarding shareholders, maintaining uninterrupted dividend payments since 2001, with a total of 64 dividends declared since July of that year.As of January 17, 2025, the company’s stock traded at Rs 2,671 intraday, offering a dividend yield of 1.9%. Over the long term, Colgate-Palmolive has upheld a strong history of dividend payouts. On October 24, 2024, the company announced an interim dividend of Rs 24 per equity share (face value Re 1), reflecting a remarkable 2,400% dividend for FY25.For further insights, refer to the Colgate-Palmolive India fact sheet and quarterly results.