Bharat Petroleum And Two Other Indian Dividend Stocks To Consider

In the last week, the Indian market has stayed flat, but over the past 12 months, it has risen by an impressive 40%, with earnings forecast to grow by 17% annually. In such a promising environment, dividend stocks like Bharat Petroleum and others can offer investors a combination of income and potential growth, making them worth considering for those looking to capitalize on India's robust market trajectory.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.62%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	4.67%	★★★★★★
D. B (NSEI:DBCORP)	5.09%	★★★★★☆
Indian Oil (NSEI:IOC)	8.52%	★★★★★☆
VST Industries (BSE:509966)	3.64%	★★★★★☆
Redington (NSEI:REDINGTON)	3.56%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.32%	★★★★★☆
Canara Bank (NSEI:CANBK)	3.14%	★★★★★☆
PTC India (NSEI:PTC)	4.16%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.14%	★★★★★☆

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

Underneath we present a selection of stocks filtered out by our screen.

Bharat Petroleum (NSEI:BPCL)

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

Overview: Bharat Petroleum Corporation Limited is involved in refining crude oil and marketing petroleum products both in India and internationally, with a market cap of ₹1.49 trillion.

Operations: Bharat Petroleum Corporation Limited's revenue primarily stems from its Downstream Petroleum segment, which generated ₹5.07 billion, and its Exploration & Production of Hydrocarbons segment, contributing ₹1.92 million.

Dividend Yield: 6.1%

Bharat Petroleum Corporation Limited (BPCL) offers a compelling dividend profile with a low payout ratio of 33.3%, ensuring dividends are well-covered by earnings and cash flows. Despite its volatile dividend history, BPCL's yield is among the top 25% in India at 6.13%. The company's Price-To-Earnings ratio of 7.8x indicates good value compared to the broader market. Recent strategic moves into renewable energy and green hydrogen sectors may enhance long-term growth prospects despite current earnings challenges.

• Click to explore a detailed breakdown of our findings in Bharat Petroleum's dividend report.
• The valuation report we've compiled suggests that Bharat Petroleum's current price could be quite moderate.

PTC India (NSEI:PTC)

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

Overview: PTC India Limited, with a market cap of ₹55.51 billion, operates 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, amounting to ₹159.67 billion, and its financing business, contributing ₹7.35 billion.

Dividend Yield: 4.2%

PTC India Limited declared a final dividend of ₹7.80 per share for FY 2023-24, reflecting a reasonable payout ratio of 54%, ensuring dividends are covered by earnings and cash flows with a low cash payout ratio of 9.4%. Despite being in the top quartile for dividend yield in India at 4.16%, PTC's dividend history is marked by volatility over the past decade, though recent increases suggest potential growth stability moving forward.

• Take a closer look at PTC India's potential here in our dividend report.
• Our valuation report here indicates PTC India may be undervalued.

Swaraj Engines (NSEI:SWARAJENG)

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

Overview: Swaraj Engines Limited manufactures and sells diesel engines, components, and spare parts for tractors in India with a market cap of ₹36.49 billion.

Operations: Swaraj Engines Limited generates revenue of ₹14.37 billion from its diesel engines, components, and spare parts for tractors in India.

Dividend Yield: 3.2%

Swaraj Engines offers a dividend yield of 3.16%, ranking in the top 25% of Indian payers, but its dividends are not well-covered by free cash flows due to a high cash payout ratio of 122%. While earnings growth has been strong at 15.6% annually over five years, past dividend payments have been volatile with significant annual drops. Recent board changes include appointing Devjit Sarkar as CEO, potentially impacting future strategic direction.

• Click here and access our complete dividend analysis report to understand the dynamics of Swaraj Engines.
• Our comprehensive valuation report raises the possibility that Swaraj Engines is priced lower than what may be justified by its financials.

Key Takeaways

• Take a closer look at our Top Indian Dividend Stocks list of 20 companies 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.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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