Top Indian (NIFTY) Dividend Stocks

Top Indian (NIFTY) Dividend Stocks

UPDATED Jun 28, 2022

What are the best Indian (NIFTY) Dividend Stocks?

According to our Simply Wall St analysis these are the best Indian dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

27 companies meet this criteria in the Indian market

State Bank of India provides various banking products and services to individuals, commercial enterprises, corporates, public bodies, and institutional customers in India and internationally.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: SBIN's dividend (1.53%) is low compared to the top 25% of dividend payers in the Indian market (1.87%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (11.7x) is below the Indian market (20.4x)

  • Earnings are forecast to grow 18.53% per year

  • Earnings grew by 57.9% over the past year

Risks

  • High level of non-cash earnings

View all Risks and Rewards

Welspun Corp Limited, together with its subsidiaries, manufactures and sells steel pipes, plates, and coils in the United States, Saudi Arabia, and India.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: 532144's dividend (2.2%) is in the top 25% of dividend payers in the Indian market (1.87%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (13.5x) is below the Indian market (20.4x)

  • Earnings are forecast to grow 25.31% per year

Risks

  • Highly volatile share price over the past 3 months

  • High level of non-cash earnings

  • Profit margins (6.9%) are lower than last year (10.2%)

View all Risks and Rewards

Siyaram Silk Mills Limited manufactures and sells yarn, fabrics, readymade garments, and other textiles products in India.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: 503811's dividend (1.88%) is in the top 25% of dividend payers in the Indian market (1.87%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 13.3% below our estimate of its fair value

  • Earnings are forecast to grow 11.67% per year

  • Earnings grew by 5939.9% over the past year

Risks

  • High level of non-cash earnings

  • Volatile share price over the past 3 months

View all Risks and Rewards
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