HCL Technologies And Two More Top Dividend Stocks On The Indian Exchange

Over the past year, the Indian stock market has experienced a robust growth of 44%, despite a recent dip of 1.5% over the last seven days. In this dynamic environment, dividend stocks like HCL Technologies stand out for their potential to provide investors with steady income alongside anticipated earnings growth forecasted at 16% annually.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	3.92%	★★★★★★
D. B (NSEI:DBCORP)	4.95%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.25%	★★★★★☆
Indian Oil (NSEI:IOC)	8.44%	★★★★★☆
Castrol India (BSE:500870)	3.04%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	6.86%	★★★★★☆
VST Industries (BSE:509966)	3.21%	★★★★★☆
Redington (NSEI:REDINGTON)	3.06%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.03%	★★★★★☆
PTC India (NSEI:PTC)	3.62%	★★★★★☆

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

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

HCL Technologies (NSEI:HCLTECH)

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

Overview: HCL Technologies Limited, a global company, provides software development, business process outsourcing, and infrastructure management services with a market capitalization of approximately ₹4.33 trillion.

Operations: HCL Technologies Limited generates revenue primarily through three segments: HCL Software at $1.42 billion, IT and Business Services at $9.91 billion, and Engineering and R&D Services at $2.16 billion.

Dividend Yield: 3.3%

HCL Technologies, with a Price-To-Earnings ratio of 26.3x below the Indian market average of 33.5x, offers relative value in its sector. Despite a volatile dividend history, recent dividends are supported by earnings and cash flows, with an earnings coverage at 85.7% and cash payout ratio at 64.6%. The company declared an interim dividend of INR 12 per share for FY 2024-25 but has shown unstable dividend trends over the past decade, reflecting potential risks for those seeking consistent income from dividends.

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

PTC India (NSEI:PTC)

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

Overview: PTC India Limited operates in the power trading sector across India, Nepal, Bhutan, and Bangladesh, with a market capitalization of approximately ₹63.72 billion.

Operations: PTC India Limited generates revenue primarily through its power trading activities, which accounted for ₹16.01 billion, and its financing business, contributing ₹7.67 billion.

Dividend Yield: 3.6%

PTC India has demonstrated a mixed track record in dividend reliability, with payments showing volatility over the past decade. Despite this, its recent dividend yield of 3.62% ranks in the top quartile of Indian dividend payers. The dividends are well-supported by both earnings and cash flow, with a payout ratio of 54% and a cash payout ratio of 9.4%, suggesting sustainability from operational cash flows. Recent corporate governance changes include Dr. Manoj Kumar Jhawar assuming interim CMD responsibilities following regulatory actions against Dr. Rajib Kumar Mishra, potentially impacting managerial stability.

• Click here to discover the nuances of PTC India with our detailed analytical dividend report.
• The valuation report we've compiled suggests that PTC India's current price could be quite moderate.

Swaraj Engines (NSEI:SWARAJENG)

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

Overview: Swaraj Engines Limited, based in India, specializes in manufacturing and selling diesel engines, diesel engine components, and spare parts for tractors, with a market capitalization of approximately ₹36.19 billion.

Operations: Swaraj Engines Limited generates revenue primarily through the sale of diesel engines, engine components, and tractor spare parts, totaling ₹14.37 billion.

Dividend Yield: 3.2%

Swaraj Engines reported a revenue increase to INR 4.22 billion for Q1 2024, up from INR 4.04 billion the previous year, with net income also rising to INR 431.9 million. Despite this growth, the company's dividend sustainability is questionable as dividends are not well covered by free cash flow, with a high cash payout ratio of 122%. Moreover, dividend payments have been inconsistent over the past decade, showing significant volatility and unreliable growth patterns. The company recently faced a minor regulatory penalty but expects no material financial impact from it.

• Click here and access our complete dividend analysis report to understand the dynamics of Swaraj Engines.
• The analysis detailed in our Swaraj Engines valuation report hints at an deflated share price compared to its estimated value.

Key Takeaways

• Take a closer look at our Top Indian Dividend Stocks list of 19 companies by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Searching for a Fresh Perspective?

• 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