3 Top Indian Dividend Stocks Yielding Up To 6.4%

The Indian market has shown impressive performance, climbing 1.2% in the last 7 days and up 41% over the past 12 months, with earnings expected to grow by 17% per annum over the next few years. In this thriving environment, identifying dividend stocks that offer robust yields can be a smart strategy for investors seeking both income and growth potential.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.24%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	4.20%	★★★★★★
D. B (NSEI:DBCORP)	5.02%	★★★★★☆
Indian Oil (NSEI:IOC)	8.48%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.10%	★★★★★☆
VST Industries (BSE:509966)	3.08%	★★★★★☆
Redington (NSEI:REDINGTON)	3.24%	★★★★★☆
Canara Bank (NSEI:CANBK)	3.08%	★★★★★☆
PTC India (NSEI:PTC)	3.63%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.22%	★★★★★☆

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.

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 ₹1.41 trillion.

Operations: Bharat Petroleum Corporation Limited generates revenue primarily from its Downstream Petroleum segment, amounting to ₹5.07 billion, and the Exploration & Production of Hydrocarbons segment, which contributes ₹1.92 billion.

Dividend Yield: 6.5%

Bharat Petroleum's dividend payments are well covered by both earnings (33.3% payout ratio) and cash flows (34.6% cash payout ratio). Despite a high debt level, the company’s price-to-earnings ratio of 7.4x is below the Indian market average, indicating good value. Recent strategic moves into renewable energy and green hydrogen through joint ventures could provide future growth opportunities, though past dividends have been volatile and earnings are expected to decline by 11.9% annually over the next three years.

• Get an in-depth perspective on Bharat Petroleum's performance by reading our dividend report here.
• The valuation report we've compiled suggests that Bharat Petroleum's current price could be quite moderate.

D. B (NSEI:DBCORP)

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

Overview: D. B. Corp Limited operates in newspaper printing and publishing, radio broadcasting, and digital news platforms for news and event management in India and internationally, with a market cap of ₹60.29 billion.

Operations: D. B. Corp Limited's revenue segments include ₹22.77 billion from printing, publishing, and allied businesses, and ₹1.62 billion from radio broadcasting.

Dividend Yield: 5%

D. B. Corp's dividend payments are covered by earnings (65.2% payout ratio) and cash flows (57% cash payout ratio), indicating sustainability. However, the dividends have been volatile over the past decade, making them less reliable for consistent income. The company trades at a good value, 11.7% below its estimated fair value, and offers a competitive dividend yield in the top 25% of Indian market payers. Recent earnings growth has been strong with net income rising to ₹1,178.66 million for Q1 2024 from ₹787.59 million a year ago.

• Click here to discover the nuances of D. B with our detailed analytical dividend report.
• Our expertly prepared valuation report D. B implies its share price may be lower than expected.

Petronet LNG (NSEI:PETRONET)

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

Overview: Petronet LNG Limited operates in the import, storage, regasification, and supply of liquefied natural gas (LNG) in India, with a market cap of ₹4.84 billion.

Operations: Petronet LNG Limited generates revenue primarily from its Natural Gas Business, amounting to ₹544.88 billion.

Dividend Yield: 3.1%

Petronet LNG's dividends are well-covered by earnings (12.3% payout ratio) and cash flows (37.2% cash payout ratio), though they've been volatile over the past decade, making them less reliable for consistent income. The company offers a competitive dividend yield in the top 25% of Indian market payers and trades at a favorable valuation with a P/E ratio of 12.3x compared to the market's 34.3x. Recent earnings growth has been robust, with Q1 2024 net income rising to ₹11.05 billion from ₹8.19 billion a year ago.

• Click to explore a detailed breakdown of our findings in Petronet LNG's dividend report.
• The analysis detailed in our Petronet LNG valuation report hints at an inflated share price compared to its estimated value.

Make It Happen

• Access the full spectrum of 18 Top Indian Dividend Stocks by clicking on this link.
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Ready For A Different Approach?

• 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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