Top Dividend Stocks To Consider On The Indian Exchange In August 2024

Over the last 7 days, the Indian market has dropped 4.7%, driven by pullbacks in every sector. In contrast to the last week, the market is up 39% over the past year, with earnings forecast to grow by 17% annually. In such a fluctuating environment, dividend stocks can offer stability and income potential for investors looking to navigate these market conditions effectively.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	3.61%	★★★★★★
D. B (NSEI:DBCORP)	5.17%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.26%	★★★★★☆
VST Industries (BSE:509966)	3.63%	★★★★★☆
Indian Oil (NSEI:IOC)	8.13%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	6.11%	★★★★★☆
Redington (NSEI:REDINGTON)	3.22%	★★★★★☆
NMDC (BSE:526371)	3.17%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.12%	★★★★★☆
PTC India (NSEI:PTC)	3.72%	★★★★★☆

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

Here we highlight a subset of our preferred stocks from the screener.

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, with a dividend yield of 4.8%, ranks in the top 25% of Indian dividend payers. Despite earnings growth of 38.6% last year and a low payout ratio (42%), its dividends are not well covered by free cash flows due to a high cash payout ratio (1226%). The company's P/E ratio (8.7x) suggests good value compared to the broader market. Recent strategic alliances may bolster future stability but past dividend volatility remains a concern.

• Click to explore a detailed breakdown of our findings in Coal India's dividend report.
• According our valuation report, there's an indication that Coal India's share price might be on the cheaper side.

Oil and Natural Gas (NSEI:ONGC)

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

Overview: Oil and Natural Gas Corporation Limited (NSEI:ONGC) explores for, develops, and produces crude oil and natural gas in India and internationally, with a market cap of ₹3.85 trillion.

Operations: Oil and Natural Gas Corporation Limited's revenue segments include ₹96.69 billion from operations outside India, ₹5.72 billion from refining and marketing within India, ₹441.92 million from onshore exploration and production in India, and ₹953.81 million from offshore exploration and production in India.

Dividend Yield: 3.7%

Oil and Natural Gas Corporation Limited (ONGC) has a dividend yield of 3.72%, placing it in the top 25% of Indian dividend payers. Despite a low payout ratio of 31.3%, recent earnings reports show a decline in net income to ₹99.36 billion from ₹146.44 billion year-over-year, potentially impacting future dividends. The company's P/E ratio of 9.3x indicates good value compared to the broader market, but past dividend volatility remains an issue for investors seeking stable income streams.

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

Uniparts India (NSEI:UNIPARTS)

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

Overview: Uniparts India Limited, with a market cap of ₹22.47 billion, manufactures and sells engineering systems, solutions, assemblies, and components for off-highway vehicles in India and internationally.

Operations: Uniparts India Limited generates ₹11.40 billion in revenue from linkage parts and components for off-highway vehicles.

Dividend Yield: 3.9%

Uniparts India has recently started paying dividends, making it too early to assess reliability or growth. The company’s dividend yield of 3.93% places it among the top 25% in the Indian market. Despite a recent decline in net income to ₹1.25 billion from ₹2.05 billion year-over-year, its dividends are covered by earnings (62.6%) and cash flows (53.9%). A P/E ratio of 18x suggests good value compared to peers and industry standards.

• Click here and access our complete dividend analysis report to understand the dynamics of Uniparts India.
• Our valuation report here indicates Uniparts India may be undervalued.

Taking Advantage

• Delve into our full catalog of 18 Top Indian Dividend Stocks here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Seeking Other Investments?

• 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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