Indian Dividend Stocks To Consider In October 2024

The Indian market has remained flat over the last week but has experienced a substantial 45% increase over the past year, with earnings forecasted to grow by 17% annually. In such a dynamic environment, identifying dividend stocks that offer consistent returns and align with growth forecasts can be an effective strategy for investors seeking stability and income.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Castrol India (BSE:500870)	3.27%	★★★★★★
Balmer Lawrie Investments (BSE:532485)	4.42%	★★★★★★
D. B (NSEI:DBCORP)	5.08%	★★★★★☆
Indian Oil (NSEI:IOC)	7.82%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	5.70%	★★★★★☆
VST Industries (BSE:509966)	3.65%	★★★★★☆
Balmer Lawrie (BSE:523319)	3.07%	★★★★★☆
Redington (NSEI:REDINGTON)	3.34%	★★★★★☆
PTC India (NSEI:PTC)	3.71%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.05%	★★★★★☆

Click here to see the full list of 15 stocks from our Top Indian Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Bharat Petroleum (NSEI:BPCL)

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

Overview: Bharat Petroleum Corporation Limited focuses on refining crude oil and marketing petroleum products both in India and internationally, with a market cap of ₹1.60 trillion.

Operations: Bharat Petroleum Corporation Limited generates revenue primarily from its Downstream Petroleum segment, amounting to ₹5.07 trillion, and the Exploration & Production of Hydrocarbons segment, contributing ₹1.92 billion.

Dividend Yield: 5.7%

Bharat Petroleum Corporation Limited (BPCL) offers a dividend yield in the top 25% of Indian market payers, with dividends well-covered by earnings and cash flows due to low payout ratios. However, its dividend history is marked by volatility, including annual drops over 20%, making it less reliable. Despite trading at a favorable price-to-earnings ratio compared to peers, BPCL faces challenges such as high debt levels and forecasted earnings decline. Recent strategic moves into renewable energy signal potential diversification benefits.

• Get an in-depth perspective on Bharat Petroleum's performance by reading our dividend report here.
• The valuation report we've compiled suggests that Bharat Petroleum's current price could be quite moderate.

Indian Oil (NSEI:IOC)

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

Overview: Indian Oil Corporation Limited, along with its subsidiaries, is involved in refining, pipeline transportation, and marketing of petroleum products both in India and internationally, with a market cap of ₹2.47 trillion.

Operations: Indian Oil Corporation Limited generates revenue primarily from Petroleum Products amounting to ₹8.25 trillion and Petrochemicals contributing ₹262.95 billion.

Dividend Yield: 7.8%

Indian Oil Corporation offers a dividend yield among the top 25% in India, with dividends well-covered by earnings and cash flows due to low payout ratios. However, its dividend history is marked by volatility and instability over the past decade. Despite trading at a favorable price-to-earnings ratio compared to peers, recent executive changes may impact strategic direction. The company faces challenges with high debt levels and forecasted earnings decline over the next few years.

• Take a closer look at Indian Oil's potential here in our dividend report.
• Our expertly prepared valuation report Indian Oil implies its share price may be lower than expected.

PTC India (NSEI:PTC)

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

Overview: PTC India Limited, with a market cap of ₹62.18 billion, operates in the trading of power across India, Nepal, Bhutan, and Bangladesh through its subsidiaries.

Operations: PTC India Limited's revenue primarily comes from its Power segment, generating ₹159.67 billion, with an additional contribution of ₹7.35 billion from its Financing Business.

Dividend Yield: 3.7%

PTC India provides a dividend yield in the top 25% of Indian payers, supported by earnings and cash flows with a payout ratio of 54% and cash payout at 9.4%. Despite past volatility in dividends, payments have grown over ten years. Recent earnings showed increased net income, but revenue slightly decreased year-on-year. The upcoming AGM will address financial statements and dividend approval for the fiscal year ending March 2024.

• Navigate through the intricacies of PTC India with our comprehensive dividend report here.
• According our valuation report, there's an indication that PTC India's share price might be on the cheaper side.

Seize The Opportunity

• Explore the 15 names from our Top Indian Dividend Stocks screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Looking For Alternative Opportunities?

• 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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