3 High-Yield Dividend Stocks On Indian Exchange Yielding Up To 3.7%

The Indian market has shown impressive performance, climbing 1.4% in the last 7 days and a remarkable 46% over the past year, with earnings expected to grow by 17% per annum in the coming years. In this robust economic environment, identifying high-yield dividend stocks can be a strategic way to benefit from both income and potential capital appreciation.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	3.87%	★★★★★★
D. B (NSEI:DBCORP)	5.26%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.02%	★★★★★☆
VST Industries (BSE:509966)	3.15%	★★★★★☆
Indian Oil (NSEI:IOC)	8.06%	★★★★★☆
NMDC (BSE:526371)	3.21%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.05%	★★★★★☆
Redington (NSEI:REDINGTON)	3.03%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.04%	★★★★★☆
PTC India (NSEI:PTC)	3.66%	★★★★★☆

Click here to see the full list of 17 stocks from our Top Indian Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

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 ₹4.65 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%

HCL Technologies has shown a consistent increase in dividend payments over the past decade, although its track record remains somewhat volatile. The dividend payout ratio stands at 85.7%, indicating dividends are covered by earnings, and the cash payout ratio is 64.3%, suggesting sustainability from cash flows. Its price-to-earnings ratio of 28.2x is below the Indian market average, reflecting good relative value. Recent strategic partnerships and expansions, such as with Xerox and Olympus, bolster its growth prospects but insider selling raises some caution for investors seeking stability in dividend stocks.

• Delve into the full analysis dividend report here for a deeper understanding of HCL Technologies.
• Our valuation report unveils the possibility HCL Technologies' 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, along with its subsidiaries, focuses on the exploration, development, and production of crude oil and natural gas both in India and internationally, with a market cap of ₹4.12 trillion.

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

Dividend Yield: 3.7%

Oil and Natural Gas Corporation (ONGC) has demonstrated robust earnings growth of 24.1% annually over the past five years, supporting its dividend payments with a payout ratio of 31.3% from earnings and 32.5% from cash flows. Despite this, ONGC's dividend history is marked by volatility over the last decade, raising concerns about reliability. Recent strategic moves, including potential acquisitions in renewable energy and new gas production allocations, could influence future dividends but add an element of uncertainty for investors seeking stable income sources.

• Unlock comprehensive insights into our analysis of Oil and Natural Gas stock in this dividend report.
• Upon reviewing our latest valuation report, Oil and Natural Gas' share price might be too pessimistic.

PTC India (NSEI:PTC)

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

Overview: PTC India Limited, with a market cap of ₹63.10 billion, engages in the trading of power across India, Nepal, Bhutan, and Bangladesh through its subsidiaries.

Operations: PTC India Limited generates revenue primarily from its power trading segment, which accounts for ₹159.67 billion, and its financing business, contributing ₹7.35 billion.

Dividend Yield: 3.7%

PTC India’s dividend yield of 3.66% ranks in the top 25% of Indian dividend payers, with a payout ratio of 54%, indicating dividends are well-covered by earnings. However, its dividend history has been volatile over the past decade despite recent increases. Recent earnings for Q1 2024 showed net income growth to ₹1.74 billion from ₹1.30 billion a year ago, which may support future payouts amidst ongoing leadership changes and regulatory scrutiny affecting stability perceptions.

• Take a closer look at PTC India's potential here in our dividend report.
• The analysis detailed in our PTC India valuation report hints at an inflated share price compared to its estimated value.

Where To Now?

• Take a closer look at our Top Indian Dividend Stocks list of 17 companies by clicking here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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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