The Indian market has shown robust performance, rising 1.1% in the last 7 days and an impressive 42% over the past year, with earnings projected to grow by 17% annually in the coming years. In this favorable environment, dividend stocks that offer consistent payouts and potential for capital appreciation stand out as strong investment options.
Top 10 Dividend Stocks In India
Name | Dividend Yield | Dividend Rating |
Castrol India (BSE:500870) | 3.26% | ★★★★★★ |
Balmer Lawrie Investments (BSE:532485) | 3.99% | ★★★★★★ |
D. B (NSEI:DBCORP) | 5.01% | ★★★★★☆ |
HCL Technologies (NSEI:HCLTECH) | 3.19% | ★★★★★☆ |
VST Industries (BSE:509966) | 3.64% | ★★★★★☆ |
Indian Oil (NSEI:IOC) | 8.55% | ★★★★★☆ |
Canara Bank (NSEI:CANBK) | 3.05% | ★★★★★☆ |
Bank of Baroda (NSEI:BANKBARODA) | 3.17% | ★★★★★☆ |
Redington (NSEI:REDINGTON) | 3.10% | ★★★★★☆ |
PTC India (NSEI:PTC) | 3.70% | ★★★★★☆ |
Click here to see the full list of 21 stocks from our Top Indian Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
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 in India and internationally, with a market cap of ₹60.47 billion.
Operations: D. B. Corp Limited generates revenue primarily from its printing, publishing, and allied business segment (₹22.77 billion) and radio broadcasting segment (₹1.62 billion).
Dividend Yield: 5%
D. B. Corp Limited’s dividend payments have been volatile over the past decade, but its current payout ratios are sustainable, with a 65.2% earnings payout and a 57% cash flow coverage. The stock trades at a good value relative to peers and is priced 12.7% below its estimated fair value. Recent earnings growth of INR 4.26 billion from INR 1.69 billion last year supports future dividend stability despite recent decreases in interim dividends to INR 7 per share in July 2024.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Gulf Oil Lubricants India Limited manufactures, markets, and trades lubricants for the automobile and industrial sectors in India, with a market cap of ₹65.41 billion.
Operations: The company’s revenue primarily comes from its lubricants segment, generating ₹33.83 billion.
Dividend Yield: 3%
Gulf Oil Lubricants India’s dividend payments, covered by earnings (57.4% payout ratio) and cash flows (62.7% cash payout ratio), are among the top 25% in the Indian market with a 3.01% yield, though historically volatile over the past decade. The stock trades at a favorable P/E ratio of 20.1x compared to the market average of 33.2x, supported by strong recent earnings growth and significant revenue increases in Q1 2024 to INR 9.12 billion from INR 8.26 billion last year.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Redington Limited provides supply chain solutions in India and internationally, with a market cap of ₹152.74 billion.
Operations: Redington Limited’s revenue segments include IT products at ₹470,000 million and mobility products at ₹310,000 million.
Dividend Yield: 3.1%
Redington’s dividend yield of 3.1% places it in the top 25% of Indian market payers, though its dividend history has been volatile over the past decade. Despite a recent decrease to INR 6.20 per share, dividends are well-covered by earnings (39.8% payout ratio) and cash flows (50.6% cash payout ratio). Trading at a P/E ratio of 12.9x, Redington offers good relative value compared to peers and the broader market average of 33.2x.
Taking Advantage
Dive into all 21 of the Top Indian Dividend Stocks we have identified 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:DBCORP NSEI:GULFOILLUB and NSEI:REDINGTON.
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