Top 3 Indian Dividend Stocks To Watch In September 2024
In the last week, the Indian market has been flat, but it is up 43% over the past year with earnings forecasted to grow by 17% annually. In such a dynamic environment, dividend stocks can offer a stable income stream while potentially benefiting from overall market growth.
Top 10 Dividend Stocks In India
Name | Dividend Yield | Dividend Rating |
Balmer Lawrie Investments (BSE:532485) | 3.92% | ★★★★★★ |
D. B (NSEI:DBCORP) | 5.14% | ★★★★★☆ |
VST Industries (BSE:509966) | 3.33% | ★★★★★☆ |
Indian Oil (NSEI:IOC) | 7.91% | ★★★★★☆ |
Bharat Petroleum (NSEI:BPCL) | 5.88% | ★★★★★☆ |
NMDC (BSE:526371) | 3.43% | ★★★★★☆ |
Balmer Lawrie (BSE:523319) | 3.07% | ★★★★★☆ |
Redington (NSEI:REDINGTON) | 3.12% | ★★★★★☆ |
Bank of Baroda (NSEI:BANKBARODA) | 3.12% | ★★★★★☆ |
PTC India (NSEI:PTC) | 3.61% | ★★★★★☆ |
Click here to see the full list of 16 stocks from our Top Indian Dividend Stocks screener.
Let's uncover some gems from our specialized 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 from its Downstream Petroleum segment, amounting to ₹5.07 billion, and from Exploration & Production of Hydrocarbons, totaling ₹1.92 billion.
Dividend Yield: 5.9%
Bharat Petroleum Corporation Limited (BPCL) offers a compelling dividend yield of 5.88%, positioning it in the top 25% of Indian dividend payers. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 33.3% and 34.6% respectively, ensuring sustainability. However, BPCL's dividend history has been volatile over the past decade, and recent financial performance showed a significant drop in net income to ₹28.42 billion from ₹106.44 billion year-over-year as of Q1 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 businesses both in India and internationally, with a market cap of ₹58.91 billion.
Operations: D. B. Corp Limited's revenue segments include ₹22.77 billion from printing, publishing, and allied businesses and ₹1.62 billion from radio broadcasting.
Dividend Yield: 5.1%
D. B. Corp Limited's dividend yield of 5.14% places it among the top 25% of Indian dividend payers, with dividends covered by earnings (65.2%) and cash flows (57%). However, its dividend history has been volatile over the past decade despite recent increases. The company reported strong financial performance for Q1 2024, with net income rising to ₹1.18 billion from ₹787.59 million year-over-year, reflecting robust earnings growth and improved revenue figures.
Indian Oil
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Indian Oil Corporation Limited, with a market cap of ₹2.44 trillion, refines, pipeline transports, and markets petroleum products in India and internationally through its subsidiaries.
Operations: Indian Oil Corporation Limited generates revenue primarily from petroleum products (₹8.25 billion) and petrochemicals (₹262.95 million).
Dividend Yield: 7.9%
Indian Oil Corporation's dividend yield of 7.91% ranks in the top 25% of Indian dividend payers, supported by earnings (payout ratio: 39.6%) and cash flows (cash payout ratio: 56.8%). Despite a history of volatility, dividends have grown over the past decade. Recent Q1 earnings showed a significant decline in net income to ₹35.28 billion from ₹144.37 billion year-over-year, highlighting potential concerns for future payouts despite recent approval of a final dividend of ₹7 per share for FY2023-24.
Summing It All Up
Explore the 16 names from our Top Indian Dividend Stocks screener here.
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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:IOC.
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