3 High Yield Dividend Stocks On The Indian Exchange Offering Up To 7.9%

The Indian market has experienced a notable fluctuation recently, declining by 1.3% over the last week but showing a robust annual growth of 43%. In this dynamic environment, high-yield dividend stocks can be particularly appealing for investors looking for steady income streams, especially with earnings expected to grow by 16% per annum.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	3.78%	★★★★★★
D. B (NSEI:DBCORP)	4.77%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.27%	★★★★★☆
Indian Oil (NSEI:IOC)	7.92%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	6.44%	★★★★★☆
VST Industries (BSE:509966)	3.76%	★★★★★☆
Oil and Natural Gas (NSEI:ONGC)	3.65%	★★★★★☆
NMDC (BSE:526371)	3.15%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.10%	★★★★★☆
PTC India (NSEI:PTC)	3.51%	★★★★★☆

Click here to see the full list of 16 stocks from our Top Indian Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Bharat Petroleum (NSEI:BPCL)

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

Overview: Bharat Petroleum Corporation Limited operates in India, refining crude oil and marketing petroleum products with a market capitalization of approximately ₹1.37 trillion.

Operations: Bharat Petroleum Corporation Limited generates ₹50.66 billion from its Downstream Petroleum segment and ₹0.02 billion from Exploration & Production of Hydrocarbons.

Dividend Yield: 6.4%

Bharat Petroleum's recent financials show a dip in net income to INR 28.42 billion from INR 106.44 billion year-over-year, with sales nearly flat at about INR 1.28 trillion. Despite this, the dividend yield of 6.44% ranks in the top quartile of Indian stocks, supported by a sustainable payout ratio of 33.3% and a cash payout ratio of 34.6%. However, dividends have been inconsistent over the past decade, reflecting some volatility and an unreliable track record in dividend growth despite reasonable coverage by earnings and cash flows.

• Unlock comprehensive insights into our analysis of Bharat Petroleum stock in this dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Bharat Petroleum shares in the market.

Indian Oil (NSEI:IOC)

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

Overview: Indian Oil Corporation Limited operates in refining, pipeline transportation, and marketing of petroleum products both in India and internationally, with a market cap of approximately ₹2.32 trillion.

Operations: Indian Oil Corporation Limited generates ₹83.35 billion from petroleum products and ₹2.62 billion from petrochemicals.

Dividend Yield: 7.9%

Indian Oil Corporation Limited (IOC) recently issued INR 25 billion in debentures and announced a strategic biofuel joint venture, aligning with its low-carbon goals. Despite a solid dividend yield of 7.00 INR per share, the company's financial performance shows volatility. Recent earnings reveal a significant drop year-over-year, with net income halving to INR 51.49 billion from INR 102.90 billion, reflecting potential challenges in sustaining dividend payouts amidst fluctuating profits and high debt levels.

• Delve into the full analysis dividend report here for a deeper understanding of Indian Oil.
• The analysis detailed in our Indian Oil valuation report hints at an deflated share price compared to its estimated value.

PTC India (NSEI:PTC)

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

Overview: PTC India Limited operates primarily in the power trading sector across India, Nepal, Bhutan, and Bangladesh, with a market capitalization of approximately ₹64.96 billion.

Operations: PTC India Limited generates ₹160.12 billion from its power trading activities and ₹7.67 billion from its financing business.

Dividend Yield: 3.5%

PTC India reported a decrease in quarterly net income to INR 862.6 million from INR 1,165.9 million year-over-year, with annual revenues rising to INR 168.05 billion. The company maintains a low cash payout ratio of 9.4%, ensuring dividend coverage by free cash flows, alongside a stable earnings-based payout ratio of 54%. Despite recent executive upheavals following SEBI restrictions on former CMD Dr. Rajib Kumar Mishra, PTC declared a final dividend of INR 7.80 per share, reflecting its ongoing commitment to shareholder returns amidst management transitions and regulatory challenges.

• Navigate through the intricacies of PTC India with our comprehensive dividend report here.
• The valuation report we've compiled suggests that PTC India's current price could be quite moderate.

Turning Ideas Into Actions

• Get an in-depth perspective on all 16 Top Indian Dividend Stocks by using our screener 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.
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Ready To Venture Into Other Investment Styles?

• 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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