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Top Indian (NIFTY) Automobiles Dividend Stocks
UPDATED Jun 27, 2022
What are the best Indian (NIFTY) Automobiles Dividend Stocks?
According to our Simply Wall St analysis these are the best Indian Automobiles 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.
3 companies meet this criteria in the Indian market
Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and sells in automotive components in India.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: LUMAXTECH's dividend (2.03%) is in the top 25% of dividend payers in the Indian market (1.87%)
Notable Dividend
Stable Dividend
Rewards
Price-To-Earnings ratio (17x) is below the Indian market (20.4x)
Earnings are forecast to grow 24.71% per year
Earnings grew by 47.3% over the past year
Risks
No risks detected for LUMAXTECH from our risks checks.
Apollo Tyres Limited manufactures and sells automotive tires, tubes, and flaps in the Asia Pacific, the Middle East, Africa, Europe, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: APOLLOTYRE's dividend (1.72%) is low compared to the top 25% of dividend payers in the Indian market (1.87%).
Rewards
Price-To-Earnings ratio (18.8x) is below the Indian market (20.4x)
Earnings are forecast to grow 25.39% per year
Earnings grew by 82.3% over the past year
Risks
No risks detected for APOLLOTYRE from our risks checks.
Minda Corporation Limited manufactures and sells automobile components and parts.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: MINDACORP's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (1.87%).
Stable Dividend
Rewards
Trading at 19.6% below our estimate of its fair value
Earnings are forecast to grow 21.82% per year
Earnings grew by 105.2% over the past year
Risks
No risks detected for MINDACORP from our risks checks.