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Dividend-paying stocks are often pursued for their potential to provide a consistent income stream. However, the stability of these dividends is crucial; fluctuations can indicate underlying financial challenges. For instance, Triveni Engineering & Industries has experienced significant dividend cuts, raising concerns about the reliability of its payouts and making it a less attractive option for those seeking dependable dividend investments. Today, we will compare this with another stock that shows more promise in maintaining its dividends.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Balmer Lawrie Investments (BSE:532485) | 4.14% | ★★★★★★ |
| Bhansali Engineering Polymers (BSE:500052) | 2.89% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 3.84% | ★★★★★☆ |
| ITC (NSEI:ITC) | 3.21% | ★★★★★☆ |
| Castrol India (BSE:500870) | 3.09% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.50% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.27% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.69% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.27% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.66% | ★★★★★☆ |
Click here to see the full list of 18 stocks from our Top Dividend Stocks screener.
Let's review one of the notable picks from our screened stocks and one not so great.
Top Pick
ITC
Simply Wall St Dividend Rating: ★★★★★☆
Overview: ITC Limited operates in diverse sectors including fast-moving consumer goods, hotels, paperboards and paper, packaging, agriculture, and information technology across India and globally, with a market cap of approximately ₹5.35 trillion.
Operations: ITC's revenue is derived from several segments including ₹336.68 billion from FMCG - Cigarettes, ₹210.02 billion from FMCG - Others, ₹161.24 billion from Agri Business, ₹83.44 billion from Paperboards, Paper & Packaging, and ₹31.03 billion from Hotels.
Dividend Yield: 3.2%
ITC has demonstrated a stable dividend track record over the past decade, contrasting sharply with companies experiencing significant cuts. Although its dividend yield stands at a competitive 3.21%, challenges persist as the 126.1% cash payout ratio and 83.7% earnings payout ratio indicate potential sustainability issues, despite recent financial growth with net income increasing to INR 204,587.8 million from INR 191,916.6 million last year and consistent dividend increments announced in May 2024.
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Get an in-depth perspective on ITC's performance by reading our dividend report here.
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Our valuation report unveils the possibility ITC's shares may be trading at a premium.
One To Reconsider
Triveni Engineering & Industries
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Triveni Engineering & Industries Limited operates in the sugar and engineering sectors both in India and globally, with a market capitalization of approximately ₹85.80 billion.