Top 3 Indian Dividend Stocks To Enhance Your Portfolio

The Indian market increased by 1.6% over the last week and climbed 43% in the past year, with earnings forecast to grow by 17% annually. In this thriving environment, dividend stocks can be a valuable addition to your portfolio, providing both income and potential for capital appreciation.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.20%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	3.91%	★★★★★★
D. B (NSEI:DBCORP)	5.07%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.26%	★★★★★☆
VST Industries (BSE:509966)	3.63%	★★★★★☆
Indian Oil (NSEI:IOC)	8.53%	★★★★★☆
Redington (NSEI:REDINGTON)	3.17%	★★★★★☆
Canara Bank (NSEI:CANBK)	3.02%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.14%	★★★★★☆
PTC India (NSEI:PTC)	3.73%	★★★★★☆

Click here to see the full list of 19 stocks from our Top Indian Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

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 businesses in India and internationally, with a market cap of ₹59.70 billion.

Operations: D. B. Corp Limited generates revenue from three main segments: ₹22.77 billion from printing, publishing, and allied businesses; and ₹1.62 billion from radio broadcasting.

Dividend Yield: 5.1%

D. B. Corp Limited, despite a volatile dividend history, offers a reasonable dividend yield of 5.07%, placing it in the top 25% of Indian market payers. Recent earnings growth of 114.3% supports its current payout ratio of 65.2%, indicating dividends are covered by earnings and cash flows (57%). The company reported Q1 FY2024-25 net income at ₹1,178.66 million, up from ₹787.59 million last year, reflecting strong financial performance amidst recent dividend adjustments.

• Unlock comprehensive insights into our analysis of D. B stock in this dividend report.
• Our valuation report unveils the possibility D. B's shares may be trading at a discount.

Oil and Natural Gas (NSEI:ONGC)

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

Overview: Oil and Natural Gas Corporation Limited, with a market cap of ₹4.23 trillion, engages in the exploration, development, and production of crude oil and natural gas both in India and internationally.

Operations: Oil and Natural Gas Corporation Limited generates revenue from international operations (₹96.69 billion), refining and marketing within India (₹5.72 billion), onshore exploration and production in India (₹441.92 million), and offshore exploration and production in India (₹953.81 million).

Dividend Yield: 3.6%

Oil and Natural Gas Corporation Limited (ONGC) offers a dividend yield of 3.65%, ranking in the top 25% of Indian market payers. Despite a volatile dividend history, recent dividends are well-covered by earnings (31.3%) and cash flows (32.5%). ONGC's Q1 FY2024-25 net income fell to ₹99,364.5 million from ₹146,444.3 million last year, impacting short-term financial stability but maintaining long-term payout sustainability due to low payout ratios and strategic investments in renewable energy projects.

• Click here to discover the nuances of Oil and Natural Gas with our detailed analytical dividend report.
• The analysis detailed in our Oil and Natural Gas valuation report hints at an deflated share price compared to its estimated value.

Union Bank of India (NSEI:UNIONBANK)

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

Overview: Union Bank of India provides various banking products and services, with a market cap of ₹911.22 billion.

Operations: Union Bank of India's revenue segments include Treasury Operations (₹317.49 billion), Corporate/Wholesale Banking (₹440.12 billion), Retail Banking Operations - Digital Banking Operations (₹10.23 billion), and Retail Banking Operations - Other Retail Banking Operations (₹397.16 billion).

Dividend Yield: 3%

Union Bank of India declared a dividend of ₹3.60 per share for FY 2023-24, reflecting a commitment to shareholder returns despite a historically volatile dividend track record. Recent earnings showed net income growth to ₹36.42 billion in Q1 2024 from ₹32.72 billion the previous year, supporting its low payout ratio of 18.8%. However, the bank faces challenges with high non-performing loans at 4.7% and has undergone significant executive changes recently.

• Navigate through the intricacies of Union Bank of India with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Union Bank of India is priced lower than what may be justified by its financials.

Turning Ideas Into Actions

• Explore the 19 names from our Top Indian Dividend Stocks screener here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com