Yahoo Finance Exploring Top Dividend Stocks In India May 2024
In the past year, India's stock market has shown remarkable growth, rising by 45%, though it has remained flat over the last week. Given these conditions and with earnings expected to grow by 17% annually, investors might consider dividend stocks as a potentially stable component in their portfolios amidst this dynamic market environment.
Top 10 Dividend Stocks In India
Name | Dividend Yield | Dividend Rating |
Bhansali Engineering Polymers (BSE:500052) | 3.99% | ★★★★★★ |
Castrol India (BSE:500870) | 3.82% | ★★★★★☆ |
Balmer Lawrie Investments (BSE:532485) | 4.58% | ★★★★★☆ |
HCL Technologies (NSEI:HCLTECH) | 3.84% | ★★★★★☆ |
Indian Oil (NSEI:IOC) | 8.20% | ★★★★★☆ |
Indraprastha Gas (NSEI:IGL) | 3.08% | ★★★★★☆ |
Gujarat Narmada Valley Fertilizers & Chemicals (NSEI:GNFC) | 4.38% | ★★★★★☆ |
VST Industries (BSE:509966) | 3.77% | ★★★★★☆ |
PTC India (NSEI:PTC) | 3.33% | ★★★★★☆ |
Rashtriya Chemicals and Fertilizers (NSEI:RCF) | 3.51% | ★★★★★☆ |
Click here to see the full list of 26 stocks from our Top Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
NMDC
Simply Wall St Dividend Rating: ★★★★★☆
Overview: NMDC Limited, primarily engaged in the exploration and production of iron ore in India, has a market capitalization of approximately ₹788.63 billion.
Operations: NMDC Limited generates revenue primarily from iron ore, which contributed ₹204.17 billion, and its pellet, other minerals, and services segment added an additional ₹2.51 billion.
Dividend Yield: 3.2%
NMDC Limited, with a Price-To-Earnings ratio of 12.3x below the Indian market average of 31.8x, offers a dividend yield in the top 25% at 3.2%. Despite its unstable dividend history over the past decade, recent financial improvements show promise. For Q3 2024, NMDC reported significant growth with net income rising to INR 14,839.3 million from INR 9,122.3 million year-over-year and declared an interim dividend of INR 5.75 per share. The dividends are well-covered by both earnings and cash flows, with payout ratios at a sustainable level (Earnings Payout Ratio: 39.2%, Cash Payout Ratio: 43.4%).
Bharat Petroleum
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bharat Petroleum Corporation Limited operates in India, focusing on refining crude oil and marketing petroleum products, with a market capitalization of approximately ₹1.37 trillion.
Operations: Bharat Petroleum Corporation Limited generates ₹50.81 billion from its Downstream Petroleum segment and ₹0.02 billion from Exploration & Production of Hydrocarbons.
Dividend Yield: 3.3%
Bharat Petroleum, despite its low Price-To-Earnings ratio of 4.7x indicating value relative to the broader Indian market, faces challenges with its dividend reliability. Over the past decade, dividends have been volatile and are not expected to grow, reflecting an unstable payout history. Furthermore, earnings are projected to decline significantly over the next three years. However, current dividends are well-supported by earnings and cash flows with a payout ratio of 40% and a cash payout ratio of 9.3%. Recent executive changes may influence future strategic directions but their impact remains uncertain.
Click to explore a detailed breakdown of our findings in Bharat Petroleum's dividend report.
Our valuation report here indicates Bharat Petroleum may be undervalued.
Coal India
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Coal India Limited, a major player in the coal production and marketing sector in India, operates with a market capitalization of approximately ₹2.92 trillion.
Operations: Coal India Limited generates approximately ₹1.30 billion in revenue from its coal mining and services segment.
Dividend Yield: 5.4%
Coal India Limited recently reported a substantial increase in annual net income to INR 374.02 billion, up from INR 317.63 billion the previous year, with a corresponding rise in basic earnings per share. The company has proposed a final dividend of INR 5 per share for FY2023-24, reflecting its commitment to returning value to shareholders despite the volatility and unreliability observed in its dividend payments over the past decade. Additionally, Coal India is exploring strategic acquisitions and joint ventures, such as its interest in the KSK Mahanadi power project and a coal-to-chemicals business with BHEL, indicating an expansion strategy that could impact future profitability and dividend sustainability.
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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 BSE:526371 NSEI:BPCL and NSEI:COALINDIA.
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