The Indian market has shown remarkable resilience, remaining stable over the last week and achieving a substantial 45% increase over the past year with earnings projected to grow by 16% annually. In such a thriving environment, high-yield dividend stocks can be particularly appealing for investors seeking both stability and consistent returns.
Overview: Bharat Petroleum Corporation Limited, primarily engaged in refining crude oil and marketing petroleum products across India, boasts a market capitalization of approximately ₹1.32 trillion.
Operations: Bharat Petroleum Corporation Limited generates revenue primarily through its Downstream Petroleum segment, which accounted for ₹50.68 billion, and a smaller contribution from Exploration & Production of Hydrocarbons at approximately ₹1.88 billion.
Dividend Yield: 6.8%
Bharat Petroleum Corporation Limited (BPCL) offers a dividend yield of 6.82%, ranking in the top 25% of Indian dividend payers. Despite this, BPCL has a history of volatile dividends over the past decade, with earnings forecasted to decline by an average of 31.8% annually over the next three years. However, both earnings and cash flows sufficiently cover dividends, with payout ratios at 33.3% and 34.6% respectively, indicating sustainability under current conditions. Additionally, recent corporate actions include proposed dividends and executive changes but no direct impact on dividend policies was noted from these events.
Overview: HCL Technologies Limited is a global company that provides software development, business process outsourcing, and infrastructure management services, with a market capitalization of approximately ₹4.25 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 25.9x below the Indian market average, trades at a good relative value. Its earnings have expanded by 5.9% annually over the past five years and are projected to grow by 8.56% yearly moving forward. Despite a top-tier dividend yield of 3.31%, HCL's dividend history is marked by instability, including recent cuts, such as the interim dividend set at INR 12 per share announced on July 12, 2024. The dividends are currently supported by earnings and cash flows with payout ratios of 85.7% and cash payout ratio at 64.6%, respectively, though their growth has been inconsistent over the last decade.
Overview: Oil and Natural Gas Corporation Limited (NSEI: ONGC) is a major player in the exploration, development, and production of crude oil and natural gas both in India and globally, with a market capitalization of approximately ₹4.06 trillion.
Operations: Oil and Natural Gas Corporation Limited generates revenue primarily through its refining and marketing segment in India, which brought in ₹56.75 billion, along with its exploration and production segments, contributing ₹4.39 billion onshore and ₹9.43 billion offshore; additionally, the company earned ₹95.53 billion from international operations.
Dividend Yield: 3.8%
ONGC's dividend yield of 3.8% ranks well within the top quartile in the Indian market, supported by a stable earnings coverage with a payout ratio of 31.3% and cash flows with a cash payout ratio of 32.5%. Despite this, ONGC has experienced volatility in its dividend payments over the last decade, reflecting an unstable track record which could concern investors seeking consistent returns. However, its recent earnings growth of 38.9% and trading at a Price-To-Earnings ratio significantly below industry average suggest potential value relative to peers.
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.
