3 Indian Dividend Stocks Yielding Up To 4.7%

The Indian market has experienced a 4.9% decline over the past week, yet it has shown resilience with a remarkable 37% rise over the last year and an optimistic forecast of 18% annual earnings growth. In such fluctuating conditions, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those seeking consistent returns amidst market volatility.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.91%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	5.18%	★★★★★★
Bhansali Engineering Polymers (BSE:500052)	3.13%	★★★★★★
D. B (NSEI:DBCORP)	4.37%	★★★★★☆
Redington (NSEI:REDINGTON)	3.86%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.86%	★★★★★☆
Canara Bank (NSEI:CANBK)	3.42%	★★★★★☆
Indian Oil (NSEI:IOC)	9.57%	★★★★★☆
PTC India (NSEI:PTC)	4.55%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.17%	★★★★★☆

Click here to see the full list of 18 stocks from our Top Indian Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Bank of Baroda (NSEI:BANKBARODA)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Bank of Baroda Limited offers a range of banking products and services to individuals, government departments, and corporate customers both in India and internationally, with a market cap of ₹1.24 trillion.

Operations: Bank of Baroda Limited generates revenue through various banking products and services catering to individuals, government departments, and corporate clients across domestic and international markets.

Dividend Yield: 3.2%

Bank of Baroda's dividend yield is in the top 25% among Indian dividend payers, supported by a low payout ratio of 19.6%, ensuring dividends are well covered by earnings. Despite a history of volatile dividends over the past decade, recent earnings growth and trading below estimated fair value suggest potential for future stability. However, investors should note the high level of non-performing loans at 2.5%, which may impact financial health and dividend reliability.

• Click here to discover the nuances of Bank of Baroda with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Bank of Baroda's current price could be quite moderate.

Union Bank of India (NSEI:UNIONBANK)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Union Bank of India offers a range of banking products and services, with a market cap of ₹826.26 billion.

Operations: Union Bank of India's revenue is primarily derived from Corporate/Wholesale Banking at ₹460.25 billion, Retail Banking Operations - Other Retail Banking Operations at ₹407.01 billion, Treasury Operations at ₹323.29 billion, and Other Banking Operations at ₹31.94 billion, with additional contributions from Retail Banking Operations - Digital Banking Operations totaling ₹9.92 billion.

Dividend Yield: 3.3%

Union Bank of India offers a dividend yield in the top 25% of Indian payers, with a low payout ratio of 18.8%, indicating strong coverage by earnings. Despite recent earnings growth, its dividend history has been volatile over the past decade. The stock trades significantly below estimated fair value, suggesting potential upside, though investors should be cautious about its high level of bad loans at 4.5%, which could affect financial stability and future dividends.

• Get an in-depth perspective on Union Bank of India's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Union Bank of India shares in the market.

Uniparts India (NSEI:UNIPARTS)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Uniparts India Limited, along with its subsidiaries, manufactures and sells engineering systems, solutions, and assemblies mainly for off-highway vehicles across India, the United States, the Asia Pacific, Europe, Japan, and other international markets; it has a market cap of ₹19.45 billion.

Operations: The revenue segment for Uniparts India Limited is primarily derived from Linkage Parts and Components for Off-Highway Vehicles, amounting to ₹11.04 billion.

Dividend Yield: 4.8%

Uniparts India recently approved two interim dividends totaling INR 14 per share, reflecting a strong yield in the top 25% of Indian dividend payers. However, its dividend history is brief and volatile, with payments only established over the past two years. Despite this instability, dividends are well-covered by earnings and cash flows with payout ratios of 73.8% and 56.7%, respectively. The stock trades slightly below fair value compared to peers, offering reasonable investment potential amidst recent board changes and stable financials.

• Click here and access our complete dividend analysis report to understand the dynamics of Uniparts India.
• Our expertly prepared valuation report Uniparts India implies its share price may be lower than expected.

Summing It All Up

• Explore the 18 names from our Top Indian Dividend Stocks screener here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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