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Operations: Petronet LNG Limited generates revenue primarily through its natural gas business, which amounted to ₹52.73 billion.

Dividend Yield: 3.1%

Petronet LNG exhibits a mixed scenario for dividend-focused investors. With a Price-To-Earnings ratio of 13.3x, it stands below the broader Indian market average of 32.2x, indicating potential value. The company's earnings have expanded by 8.9% annually over the last five years, supporting some growth context. However, dividends have shown volatility over the past decade despite recent increases and a declaration of an INR 3 per share final dividend on May 22, 2024. Dividends are well-covered by both earnings and cash flows with payout ratios at 12.8% and 37.2%, respectively, suggesting financial prudence in its distribution policies despite past inconsistencies in payment stability.

• Get an in-depth perspective on Petronet LNG's performance by reading our dividend report here.

• Our valuation report unveils the possibility Petronet LNG's shares may be trading at a premium.

Swaraj Engines

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 ₹33.96 billion.

Operations: Swaraj Engines Limited generates revenue primarily from the sale of diesel engines, engine components, and tractor spare parts, totaling ₹14.19 billion.

Dividend Yield: 3.4%

Swaraj Engines offers a dividend yield of 3.4%, ranking it among the top quarter of Indian dividend stocks, yet its sustainability is questionable with a cash payout ratio of 122% and coverage issues reflected by earnings and cash flows. Despite growing earnings at 15.4% annually over five years, dividends have been inconsistent over the last decade. Recently, Swaraj announced a significant dividend increase to ₹95 per share for FY2024, although this is subject to shareholder approval at the upcoming AGM on July 18, 2024.

• Unlock comprehensive insights into our analysis of Swaraj Engines stock in this dividend report.

• According our valuation report, there's an indication that Swaraj Engines' share price might be on the cheaper side.

Key Takeaways

• Explore the 19 names from our Top Dividend Stocks screener here.

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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.

Companies discussed in this article include NSEI:ONGC NSEI:PETRONET and NSEI:SWARAJENG.

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