Yahoo Finance Top 3 Indian Dividend Stocks To Consider
In the last week, the Indian market has stayed flat, though the Communication Services sector saw a notable gain of 4.7%. With the market up 45% over the past year and earnings forecasted to grow by 17% annually, investors may find dividend stocks particularly appealing for their potential to provide steady income alongside capital appreciation.
Top 10 Dividend Stocks In India
Name | Dividend Yield | Dividend Rating |
Balmer Lawrie Investments (BSE:532485) | 3.85% | ★★★★★★ |
D. B (NSEI:DBCORP) | 5.34% | ★★★★★☆ |
VST Industries (BSE:509966) | 3.15% | ★★★★★☆ |
Indian Oil (NSEI:IOC) | 7.92% | ★★★★★☆ |
Bharat Petroleum (NSEI:BPCL) | 5.89% | ★★★★★☆ |
NMDC (BSE:526371) | 3.24% | ★★★★★☆ |
Balmer Lawrie (BSE:523319) | 3.10% | ★★★★★☆ |
Redington (NSEI:REDINGTON) | 3.07% | ★★★★★☆ |
Bank of Baroda (NSEI:BANKBARODA) | 3.04% | ★★★★★☆ |
PTC India (NSEI:PTC) | 3.70% | ★★★★★☆ |
Click here to see the full list of 16 stocks from our Top Indian Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Bharat Petroleum
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bharat Petroleum Corporation Limited primarily engages in refining crude oil and marketing petroleum products in India and internationally, with a market cap of ₹1.55 trillion.
Operations: Bharat Petroleum Corporation Limited generates revenue primarily from its Downstream Petroleum segment, amounting to ₹5.07 billion, and the Exploration & Production of Hydrocarbons segment, which contributes ₹1.92 billion.
Dividend Yield: 5.9%
Bharat Petroleum Corporation Limited (BPCL) has a dividend payout ratio of 33.3%, indicating dividends are well covered by earnings and cash flows. However, the company's dividend payments have been volatile over the past decade despite recent increases. BPCL's price-to-earnings ratio of 8.1x is attractive compared to the Indian market average of 34.6x, but its earnings are forecasted to decline by an average of 12.8% per year for the next three years, raising concerns about future dividend sustainability amidst high debt levels and declining profitability evidenced by recent quarterly results showing a significant drop in net income from ₹106.44 billion to ₹28.42 billion year-over-year as of June 2024.
D. B
Simply Wall St Dividend Rating: ★★★★★☆
Overview: D. B. Corp Limited operates in newspaper printing and publishing, radio broadcasting, and digital news platforms for news and event management in India and internationally, with a market cap of ₹56.73 billion.
Operations: D. B. Corp Limited's revenue is derived from its radio segment, which generated ₹1.62 billion, and its printing, publishing, and allied business segment, which brought in ₹22.77 billion.
Dividend Yield: 5.3%
D. B. Corp Limited's dividend payments are covered by earnings (payout ratio: 65.2%) and cash flows (cash payout ratio: 57%). Despite a volatile dividend track record over the past decade, recent earnings growth of 114.3% suggests improved financial health, with Q1 2024 net income rising to ₹1.18 billion from ₹787.59 million a year ago. The stock trades at good value compared to peers and offers a top-tier dividend yield of 5.34%.
Click here to discover the nuances of D. B with our detailed analytical dividend report.
Upon reviewing our latest valuation report, D. B's share price might be too pessimistic.
PTC India
Simply Wall St Dividend Rating: ★★★★★☆
Overview: PTC India Limited, with a market cap of ₹62.45 billion, engages in the trading of power across India, Nepal, Bhutan, and Bangladesh through its subsidiaries.
Operations: PTC India Limited generates revenue primarily from its power trading segment, which accounts for ₹159.67 billion, and its financing business, contributing ₹7.35 billion.
Dividend Yield: 3.7%
PTC India's dividend payments are well-covered by earnings (payout ratio: 54%) and cash flows (cash payout ratio: 9.4%). Despite a volatile dividend history, the company offers a solid yield of 3.7%, placing it in the top 25% of Indian dividend payers. Recent Q1 earnings show net income rising to ₹1.74 billion from ₹1.30 billion a year ago, indicating financial stability despite slight revenue declines.
Click here and access our complete dividend analysis report to understand the dynamics of PTC India.
Upon reviewing our latest valuation report, PTC India's share price might be too optimistic.
Where To Now?
Unlock more gems! Our Top Indian Dividend Stocks screener has unearthed 13 more companies for you to explore.Click here to unveil our expertly curated list of 16 Top Indian Dividend Stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NSEI:BPCL NSEI:DBCORP and NSEI:PTC.
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