Top Dividend Stocks To Consider On The Indian Exchange

The market is up 2.6% in the last 7 days, with all sectors gaining ground. In the last year, the market has climbed 44%, and earnings are expected to grow by 17% per annum over the next few years. In such a robust environment, dividend stocks can offer both steady income and potential for capital appreciation. Here are three top dividend stocks to consider on the Indian exchange that align well with these promising market conditions.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	4.24%	★★★★★★
D. B (NSEI:DBCORP)	5.04%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.10%	★★★★★☆
VST Industries (BSE:509966)	3.39%	★★★★★☆
Indian Oil (NSEI:IOC)	8.05%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	5.98%	★★★★★☆
NMDC (BSE:526371)	3.26%	★★★★★☆
Redington (NSEI:REDINGTON)	3.00%	★★★★★☆
Oil and Natural Gas (NSEI:ONGC)	3.74%	★★★★★☆
PTC India (NSEI:PTC)	3.72%	★★★★★☆

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

Let's uncover some gems from our specialized screener.

Bharat Petroleum (NSEI:BPCL)

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

Overview: Bharat Petroleum Corporation Limited primarily engages in refining crude oil and marketing petroleum products in India and internationally, with a market cap of ₹1.52 trillion.

Operations: Bharat Petroleum Corporation Limited generates revenue from two main segments: Downstream Petroleum, which accounts for ₹5.07 billion, and Exploration & Production of Hydrocarbons, contributing ₹1.92 billion.

Dividend Yield: 6%

Bharat Petroleum Corporation Limited (BPCL) offers a compelling dividend yield of 5.98%, placing it in the top 25% of Indian dividend payers. Despite an attractive Price-To-Earnings ratio at 8x, BPCL's dividend history has been volatile with significant annual drops over the past decade. However, its dividends are well-covered by both earnings (33.3% payout ratio) and cash flows (34.6% cash payout ratio). Recent financials show declining net income, which may affect future payouts.

• Unlock comprehensive insights into our analysis of Bharat Petroleum stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Bharat Petroleum is priced lower than what may be justified by its financials.

Coal India (NSEI:COALINDIA)

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

Overview: Coal India Limited, along with its subsidiaries, is involved in the production and marketing of coal and coal products in India, with a market cap of ₹3.28 trillion.

Operations: Coal India Limited generates revenue primarily from its coal mining and services segment, amounting to ₹1.35 trillion.

Dividend Yield: 4.8%

Coal India offers a strong dividend yield of 4.79%, placing it among the top 25% of Indian dividend payers. However, its dividends are not well covered by free cash flows and have been volatile over the past decade. Despite this, the company's earnings cover its payouts with a low payout ratio of 42%. Recent ventures, including a joint venture with GAIL for synthetic natural gas production, may impact future financial stability and dividend reliability.

• Delve into the full analysis dividend report here for a deeper understanding of Coal India.
• Upon reviewing our latest valuation report, Coal India's share price might be too pessimistic.

Indian Oil (NSEI:IOC)

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

Overview: Indian Oil Corporation Limited, along with its subsidiaries, engages in refining, pipeline transportation, and marketing of petroleum products both within India and internationally, with a market cap of ₹2.39 trillion.

Operations: Indian Oil Corporation Limited generates revenue primarily from petroleum products (₹8.25 trillion) and petrochemicals (₹262.95 billion).

Dividend Yield: 8.1%

Indian Oil Corporation's dividend yield of 8.05% ranks it in the top 25% of Indian dividend payers, though its dividends have been volatile over the past decade. The company's payout ratios are reasonable, with earnings coverage at 39.6% and cash flow coverage at 56.8%. Recent news includes a final dividend declaration of ₹7 per share for FY2023-24 and strategic ventures like a joint venture for biofuel adoption, which may influence future financial stability.

• Get an in-depth perspective on Indian Oil's performance by reading our dividend report here.
• Our expertly prepared valuation report Indian Oil implies its share price may be lower than expected.

Seize The Opportunity

• Click here to access our complete index of 16 Top Indian Dividend Stocks.
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Want To Explore Some Alternatives?

• 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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