The Indian stock market has shown robust growth, rising 3.0% over the last week and an impressive 45% over the past year, with earnings projected to grow by 17% annually. In this dynamic environment, dividend stocks like Bharat Petroleum can offer investors both stability and potential income, making them an attractive option to consider.
Top 10 Dividend Stocks In India
Name
Dividend Yield
Dividend Rating
Bhansali Engineering Polymers (BSE:500052)
4.09%
★★★★★★
Castrol India (BSE:500870)
3.89%
★★★★★☆
HCL Technologies (NSEI:HCLTECH)
3.85%
★★★★★☆
D-Link (India) (NSEI:DLINKINDIA)
3.05%
★★★★★☆
Indian Oil (NSEI:IOC)
8.39%
★★★★★☆
Balmer Lawrie Investments (BSE:532485)
3.53%
★★★★★☆
Gujarat Narmada Valley Fertilizers & Chemicals (NSEI:GNFC)
Overview: Bharat Petroleum Corporation Limited, operating in India, is engaged in refining crude oil and marketing petroleum products with a market capitalization of approximately ₹1.39 trillion.
Operations: Bharat Petroleum Corporation Limited generates revenue primarily through its Downstream Petroleum segment, which accounted for ₹50.68 billion, and a smaller portion from Exploration & Production of Hydrocarbons at ₹1.88 billion.
Dividend Yield: 6.6%
Bharat Petroleum Corporation Limited (BPCL) recently proposed a final dividend of INR 10.5 per share, pending shareholder approval at the upcoming AGM. Despite a robust dividend yield positioned in the top quartile of Indian market payers, BPCL's dividends have shown volatility over the past decade. The payout is supported by earnings and cash flows, with a payout ratio of 33.3% and a cash payout ratio of 34.6%, respectively. However, earnings are projected to decline significantly in the next three years, questioning the future sustainability of such dividends amidst financial fluctuations.
Overview: D-Link (India) Limited specializes in marketing and distributing D-Link branded networking products across various sectors including consumers, small businesses, and enterprises in India, with a market capitalization of ₹15.14 billion.
Operations: D-Link (India) Limited generates its revenue by marketing and distributing networking products across diverse market segments, including individual consumers, small businesses, and larger enterprises.
Dividend Yield: 3%
D-Link (India) Limited has recently recommended a regular dividend of INR 8 and a special dividend of INR 5 per share for FY2024, subject to shareholder approval. While the company's dividends have shown historical volatility and unreliability, they are currently well-supported by earnings and cash flows with payout ratios of 30.7% and cash payout ratios of 38.6%, respectively. This financial structure suggests a sustainable approach to its dividends despite past inconsistencies in payment patterns.
Overview: MPS Limited operates in content creation, production, and distribution services for various sectors globally, with a market capitalization of approximately ₹27.36 billion.
Operations: MPS Limited generates revenue through three primary segments: Content Solutions (₹2.74 billion), Platform Solutions (₹1.18 billion), and e-Learning Solutions (₹1.32 billion).
Dividend Yield: 3.7%
MPS Limited offers a dividend yield of 3.73%, ranking in the top 25% of Indian dividend payers. Despite this, its dividends have shown volatility and unreliability over the past decade, with significant annual fluctuations exceeding 20%. While earnings coverage appears sufficient with a low payout ratio of 31.3%, the high cash payout ratio of 93.7% raises concerns about sustainability from cash flow perspectives. Additionally, MPS's earnings have grown by 13.4% annually over the past five years, and it maintains a below-market Price-To-Earnings ratio of 22.4x.
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:BPCLNSEI:DLINKINDIANSEI:MPSLTD and
