Bank of Baroda And 2 Other Indian Dividend Stocks To Enhance Your Portfolio

The Indian market has experienced a 2.7% drop over the past week, yet it remains robust with a 40% increase over the last year and anticipated earnings growth of 17% per annum in the coming years. In this dynamic environment, dividend stocks like Bank of Baroda offer potential stability and income, making them attractive options for enhancing your portfolio amidst fluctuating market conditions.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.51%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	4.51%	★★★★★★
D. B (NSEI:DBCORP)	4.83%	★★★★★☆
Indian Oil (NSEI:IOC)	8.52%	★★★★★☆
VST Industries (BSE:509966)	3.67%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.30%	★★★★★☆
Redington (NSEI:REDINGTON)	3.40%	★★★★★☆
Canara Bank (NSEI:CANBK)	3.09%	★★★★★☆
PTC India (NSEI:PTC)	3.97%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.09%	★★★★★☆

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

Below we spotlight a couple of our favorites from our exclusive screener.

Bank of Baroda (NSEI:BANKBARODA)

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

Overview: Bank of Baroda Limited offers a range of banking products and services to individuals, government departments, and corporate customers both in India and internationally, with a market cap of ₹1.27 trillion.

Operations: Bank of Baroda Limited generates revenue from several segments, including Treasury (₹316.82 billion), Other Banking Operations (₹110.76 billion), Corporate/Wholesale Banking (₹502.78 billion), and Retail Banking with Digital Banking contributing ₹7.40 million and Other Retail Banking at ₹512.25 billion.

Dividend Yield: 3.1%

Bank of Baroda's dividend payments are well covered by earnings, with a low payout ratio of 20.9%, and are expected to remain sustainable over the next three years. Although the bank's dividend yield is in the top 25% among Indian companies, its dividend history has been volatile and unreliable over the past decade. Recent strategic alliances, such as the co-branded travel debit card with EaseMyTrip.com, may enhance customer engagement but do not directly impact dividends.

• Click here to discover the nuances of Bank of Baroda with our detailed analytical dividend report.
• Our valuation report here indicates Bank of Baroda may be undervalued.

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 ₹62.65 billion.

Operations: D. B. Corp Limited's revenue is primarily derived from its Printing / Publishing and Allied Business segment, which generated ₹22.77 billion, while its Radio segment contributed ₹1.62 billion.

Dividend Yield: 4.8%

D. B. Corp's dividend yield ranks in the top 25% of Indian companies, supported by a payout ratio of 65.2%, indicating coverage by earnings and cash flows. However, its dividend history has been volatile and unreliable over the past decade, with recent decreases noted. Despite this instability, earnings have shown significant growth recently, which could support future dividends if sustained. The company declared an interim dividend of ₹7 per share for FY 2024-25.

• Delve into the full analysis dividend report here for a deeper understanding of D. B.
• Our comprehensive valuation report raises the possibility that D. B is priced lower than what may be justified by its financials.

Ujjivan Small Finance Bank (NSEI:UJJIVANSFB)

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

Overview: Ujjivan Small Finance Bank Limited offers a range of banking and financial services in India, with a market cap of ₹78.20 billion.

Operations: Ujjivan Small Finance Bank Limited's revenue is primarily derived from its Retail Banking segment, which contributes ₹58.71 billion, followed by Treasury at ₹7.58 billion and Wholesale Banking at ₹1.44 billion.

Dividend Yield: 3.7%

Ujjivan Small Finance Bank's dividend yield is among the top 25% in India, with a low payout ratio of 22.6%, suggesting strong coverage by earnings. However, its short and volatile dividend history raises concerns about reliability. Recent regulatory approval for an Authorised Dealer Category 1 Licence could enhance operational capabilities, but high non-performing loans at 2.3% remain a risk factor. Despite these challenges, the bank trades below estimated fair value and analyst price targets, indicating potential growth opportunities.

• Click here and access our complete dividend analysis report to understand the dynamics of Ujjivan Small Finance Bank.
• Insights from our recent valuation report point to the potential undervaluation of Ujjivan Small Finance Bank shares in the market.

Summing It All Up

• Dive into all 20 of the Top Indian Dividend Stocks we have identified here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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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