In This Article:
The Indian market has been flat in the last week but is up 41% over the past year, with earnings expected to grow by 17% per annum over the next few years. In this promising environment, dividend stocks can offer a stable income stream and potential for capital appreciation, making them an attractive option for investors seeking reliable returns.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Castrol India (BSE:500870) | 3.12% | ★★★★★★ |
| Balmer Lawrie Investments (BSE:532485) | 3.89% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.10% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.22% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.25% | ★★★★★☆ |
| Balmer Lawrie (BSE:523319) | 3.05% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.23% | ★★★★★☆ |
| Canara Bank (NSEI:CANBK) | 3.16% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.58% | ★★★★★☆ |
| Bank of Baroda (NSEI:BANKBARODA) | 3.26% | ★★★★★☆ |
Click here to see the full list of 19 stocks from our Top Indian Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Coal India
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Coal India Limited, along with its subsidiaries, is involved in the production and marketing of coal and coal products in India, with a market cap of ₹3.03 trillion.
Operations: Coal India Limited generates revenue primarily from coal mining and services, amounting to ₹1.35 trillion.
Dividend Yield: 5.3%
Coal India Limited offers a high dividend yield of 5.27%, placing it in the top 25% of Indian dividend payers. However, its dividends are not well covered by free cash flows, with a cash payout ratio at 1226%. Despite having a reasonable earnings payout ratio of 42%, its dividend payments have been volatile over the past decade. Recent strategic moves include a joint venture with GAIL to develop a Coal to Synthetic Natural Gas plant, potentially impacting future earnings and dividends.
PTC India
Simply Wall St Dividend Rating: ★★★★★☆
Overview: PTC India Limited, with a market cap of ₹64.51 billion, engages in the trading of power across India, Nepal, Bhutan, and Bangladesh through its subsidiaries.
Operations: PTC India Limited's revenue segments include ₹159.67 billion from power trading and ₹7.35 billion from its financing business.
Dividend Yield: 3.6%
PTC India's dividend yield of 3.58% places it among the top 25% of Indian dividend payers, with dividends well-covered by earnings (54%) and cash flows (9.4%). However, the company's dividend history has been volatile over the past decade. Recent earnings for Q1 2024 showed a net income increase to INR 1.74 billion from INR 1.30 billion year-on-year, reflecting improved financial performance despite slight revenue declines.