3 Indian Dividend Stocks Yielding Up To 6.1%

In the last week, the Indian market has stayed flat, with a notable 4.0% gain in the Information Technology sector. Over the past year, the market is up 44%, and earnings are expected to grow by 17% per annum in the coming years. In this context, dividend stocks can provide a reliable income stream and potential for capital appreciation, making them an attractive option for investors seeking stability and growth.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.16%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	4.04%	★★★★★★
D. B (NSEI:DBCORP)	4.92%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.09%	★★★★★☆
VST Industries (BSE:509966)	3.56%	★★★★★☆
Indian Oil (NSEI:IOC)	8.23%	★★★★★☆
NMDC (BSE:526371)	3.30%	★★★★★☆
Redington (NSEI:REDINGTON)	3.04%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.07%	★★★★★☆
PTC India (NSEI:PTC)	3.73%	★★★★★☆

Click here to see the full list of 20 stocks from our Top Indian Dividend Stocks screener.

Here's a peek at a few of the choices from the 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 ₹1.49 trillion.

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

Dividend Yield: 6.1%

Bharat Petroleum recently declared a cash dividend of ₹10.5 per share, with an ex-dividend date of July 22, 2024. Despite a significant drop in net income to ₹28.42 billion for Q1 2024 from ₹106.44 billion the previous year, BPCL maintains a low payout ratio (33.3%), indicating dividends are well-covered by earnings and cash flows. However, its dividend history has been volatile and unreliable over the past decade, despite being among the top dividend payers in India.

• Navigate through the intricacies of Bharat Petroleum with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, Bharat Petroleum's share price might be too pessimistic.

Gulf Oil Lubricants India (NSEI:GULFOILLUB)

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

Overview: Gulf Oil Lubricants India Limited manufactures, markets, and trades lubricants for the automobile and industrial sectors in India, with a market cap of ₹65.60 billion.

Operations: Gulf Oil Lubricants India Limited generates ₹33.83 billion in revenue from its lubricant products for the automobile and industrial sectors.

Dividend Yield: 3%

Gulf Oil Lubricants India recently appointed Sandeep Bangia as Head of Strategy, Transformation, and E-Mobility, signaling a strategic shift. Q1 2024 earnings showed robust growth with net income at ₹860.38 million from ₹680.22 million a year ago. Despite a volatile dividend history, the company has increased dividends over the past decade with current payments well-covered by earnings (57.4% payout ratio) and cash flows (62.7% cash payout ratio). The stock trades at a favorable P/E ratio of 20.1x compared to the market's 32.5x.

• Dive into the specifics of Gulf Oil Lubricants India here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that Gulf Oil Lubricants India is priced lower than what may be justified by its financials.

HCL Technologies (NSEI:HCLTECH)

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

Overview: HCL Technologies Limited provides software development, business process outsourcing, and infrastructure management services globally, with a market cap of ₹4.54 trillion.

Operations: HCL Technologies Limited generates revenue from HCL Software ($1.42 billion), IT and Business Services ($9.91 billion), and Engineering and R&D Services ($2.16 billion).

Dividend Yield: 3.1%

HCL Technologies has seen a steady increase in dividend payments over the past decade, with current dividends covered by earnings (85.7% payout ratio) and cash flows (64.3% cash payout ratio). Despite an unstable dividend track record, its 3.09% yield places it among the top 25% of Indian dividend payers. The stock trades at a favorable P/E ratio of 27.6x compared to the market's 32.5x, suggesting good relative value for investors seeking income from dividends amidst recent executive changes and strategic expansions.

• Delve into the full analysis dividend report here for a deeper understanding of HCL Technologies.
• Insights from our recent valuation report point to the potential undervaluation of HCL Technologies shares in the market.

Summing It All Up

• Click here to access our complete index of 20 Top Indian Dividend Stocks.
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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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