Top Indian Dividend Stocks For July 2024

Over the past year, the Indian stock market has shown robust growth with a 43% increase, despite a recent 2.0% drop over the last seven days. In this context of anticipated earnings growth of 16% annually, dividend stocks can be particularly appealing for investors seeking both stability and potential income in a dynamic market environment.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	3.86%	★★★★★★
D. B (NSEI:DBCORP)	4.85%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.28%	★★★★★☆
Indian Oil (NSEI:IOC)	8.29%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	6.67%	★★★★★☆
VST Industries (BSE:509966)	3.86%	★★★★★☆
Oil and Natural Gas (NSEI:ONGC)	3.83%	★★★★★☆
NMDC (BSE:526371)	3.11%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.05%	★★★★★☆
PTC India (NSEI:PTC)	3.55%	★★★★★☆

Click here to see the full list of 16 stocks from our Top Indian Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

HCL Technologies (NSEI:HCLTECH)

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

Overview: HCL Technologies Limited, a global company, provides software development, business process outsourcing, and infrastructure management services with a market cap of approximately ₹4.29 trillion.

Operations: HCL Technologies generates revenue primarily through three segments: HCL Software at $1.42 billion, IT and Business Services at $9.91 billion, and Engineering and R&D Services at $2.16 billion.

Dividend Yield: 3.3%

HCL Technologies recently declared an interim dividend of INR 12 per share, with a record date set for July 23, 2024, and payment by August 1, 2024. This follows a robust financial performance in Q1 FY2025, where sales rose to US$3.36 billion from US$3.20 billion year-over-year and net income increased to US$496 million from US$430 million. Despite these positive indicators, the company's dividend payments have shown volatility over the past decade. The recent board changes might also impact future dividend policies as new members take on leadership roles in key committees starting August 5, 2024.

• Dive into the specifics of HCL Technologies here with our thorough dividend report.
• The valuation report we've compiled suggests that HCL Technologies' current price could be quite moderate.

Swaraj Engines (NSEI:SWARAJENG)

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

Overview: Swaraj Engines Limited, based in India, specializes in manufacturing and selling diesel engines, diesel engine components, and spare parts for tractors, with a market capitalization of approximately ₹36.37 billion.

Operations: Swaraj Engines Limited generates revenue primarily from the sale of diesel engines, engine components, and tractor spare parts, totaling ₹14.37 billion.

Dividend Yield: 3.2%

Swaraj Engines offers a dividend yield of 3.17%, ranking in the top 25% of Indian dividend payers, with a history of increasing dividends over the past decade. However, its dividends are not well supported by free cash flow, with a high cash payout ratio of 122%. Despite earnings growth forecasts at 13.65% annually and recent quarterly revenue rising to INR 4.22 billion from INR 4.04 billion year-over-year, the volatility in dividend payments and an undercovered payout ratio suggest caution for those seeking stable income streams from dividends.

• Unlock comprehensive insights into our analysis of Swaraj Engines stock in this dividend report.
• Our expertly prepared valuation report Swaraj Engines implies its share price may be lower than expected.

Ujjivan Small Finance Bank (NSEI:UJJIVANSFB)

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

Overview: Ujjivan Small Finance Bank Limited operates in India, offering a range of banking and financial services with a market capitalization of approximately ₹86.04 billion.

Operations: Ujjivan Small Finance Bank Limited generates its revenue primarily through three segments: Treasury (₹7.15 billion), Retail Banking (₹56.18 billion), and Wholesale Banking (₹1.31 billion).

Dividend Yield: 3.4%

Ujjivan Small Finance Bank, with a recent dividend of INR 1.50, initiated payouts amidst a backdrop of management changes and robust earnings growth. The bank's dividends, supported by a low payout ratio of 22.6%, reflect prudent financial management despite its high bad loans ratio at 2.3%. Although the dividend track record is not long enough to judge stability fully, the recent financial performance and strategic leadership adjustments position it intriguingly for those interested in dividend incomes from evolving markets.

• Click here and access our complete dividend analysis report to understand the dynamics of Ujjivan Small Finance Bank.
• Our valuation report unveils the possibility Ujjivan Small Finance Bank's shares may be trading at a discount.

Key Takeaways

• Take a closer look at our Top Indian Dividend Stocks list of 16 companies by clicking here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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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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