3 Dividend Stocks On Indian Exchange Yielding Up To 5.2%

The Indian market has been flat in the last week but is up 41% over the past year, with earnings expected to grow by 17% per annum over the next few years. In this promising environment, dividend stocks can offer a stable income stream and potential for capital appreciation, making them an attractive option for investors seeking reliable returns.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.12%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	3.89%	★★★★★★
D. B (NSEI:DBCORP)	5.10%	★★★★★☆
VST Industries (BSE:509966)	3.22%	★★★★★☆
Indian Oil (NSEI:IOC)	8.25%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.05%	★★★★★☆
Redington (NSEI:REDINGTON)	3.23%	★★★★★☆
Canara Bank (NSEI:CANBK)	3.16%	★★★★★☆
PTC India (NSEI:PTC)	3.58%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.26%	★★★★★☆

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

Let's take a closer look at a couple of our picks from the screened companies.

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 ₹3.03 trillion.

Operations: Coal India Limited generates revenue primarily from coal mining and services, amounting to ₹1.35 trillion.

Dividend Yield: 5.3%

Coal India Limited offers a high dividend yield of 5.27%, placing it in the top 25% of Indian dividend payers. However, its dividends are not well covered by free cash flows, with a cash payout ratio at 1226%. Despite having a reasonable earnings payout ratio of 42%, its dividend payments have been volatile over the past decade. Recent strategic moves include a joint venture with GAIL to develop a Coal to Synthetic Natural Gas plant, potentially impacting future earnings and dividends.

• Click here to discover the nuances of Coal India with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Coal India is trading behind its estimated value.

PTC India (NSEI:PTC)

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

Overview: PTC India Limited, with a market cap of ₹64.51 billion, engages in the trading of power across India, Nepal, Bhutan, and Bangladesh through its subsidiaries.

Operations: PTC India Limited's revenue segments include ₹159.67 billion from power trading and ₹7.35 billion from its financing business.

Dividend Yield: 3.6%

PTC India's dividend yield of 3.58% places it among the top 25% of Indian dividend payers, with dividends well-covered by earnings (54%) and cash flows (9.4%). However, the company's dividend history has been volatile over the past decade. Recent earnings for Q1 2024 showed a net income increase to INR 1.74 billion from INR 1.30 billion year-on-year, reflecting improved financial performance despite slight revenue declines.

• Get an in-depth perspective on PTC India's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, PTC India's share price might be too pessimistic.

Union Bank of India (NSEI:UNIONBANK)

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

Overview: Union Bank of India offers a range of banking products and services with a market cap of ₹897.41 billion.

Operations: Union Bank of India's revenue segments include Treasury Operations (₹317.49 billion), Other Banking Operations (₹30.66 billion), Corporate/Wholesale Banking (₹440.12 billion), and Retail Banking Operations comprising Digital Banking (₹10.23 billion) and Other Retail Services (₹397.16 billion).

Dividend Yield: 3.1%

Union Bank of India’s dividend yield of 3.06% ranks it in the top 25% of Indian dividend payers. Despite a low payout ratio (18.8%), indicating strong earnings coverage, the bank's dividend history has been volatile over the past decade with instances of falling payments. Recent earnings showed net income rising to ₹36.42 billion for Q1 2024 from ₹32.72 billion year-on-year, reflecting robust financial performance despite high non-performing loans (4.7%).

• Unlock comprehensive insights into our analysis of Union Bank of India stock in this dividend report.
• According our valuation report, there's an indication that Union Bank of India's share price might be on the cheaper side.

Key Takeaways

• Unlock our comprehensive list of 19 Top Indian Dividend Stocks by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Curious About Other Options?

• 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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