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Over the last 7 days, the Indian market has experienced a 3.6% drop, yet it remains up by 40% over the past year with earnings expected to grow by 17% annually. In such dynamic conditions, selecting dividend stocks like Canara Bank can be an attractive strategy for investors seeking income and potential growth amidst market fluctuations.

Top 10 Dividend Stocks In India

Click here to see the full list of 20 stocks from our Top Indian Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Canara Bank

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Canara Bank offers a range of banking products and services both in India and internationally, with a market cap of ₹938.72 billion.

Operations: Canara Bank's revenue segments include Treasury Operations at ₹255.75 billion, Life Insurance Operation at ₹120.19 billion, Wholesale Banking Operations at ₹430.48 billion, and Retail Banking Operations - Other Retail Banking at ₹632.28 billion.

Dividend Yield: 3.1%

Canara Bank's dividend payments have been volatile over the past decade, with fluctuations exceeding 20% annually. Despite this, dividends have grown overall during this period and are well-covered by earnings, with a low payout ratio of 19.1%. The bank's high level of bad loans at 4.3% poses a risk to future stability. Recent activities include inviting bids for exposure in NSL group companies through an auction process, potentially impacting its financials and dividend sustainability.

• Click here to discover the nuances of Canara Bank with our detailed analytical dividend report.

• Our expertly prepared valuation report Canara Bank implies its share price may be lower than expected.

Redington

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Redington Limited offers supply chain solutions both in India and internationally, with a market cap of ₹144.27 billion.

Operations: Redington Limited's revenue is primarily derived from its supply chain solutions provided in both domestic and international markets.

Dividend Yield: 3.4%

Redington's dividend history shows volatility, with reductions over 20% annually in the past decade, yet dividends have grown overall. The payout ratio is sustainable at 39.8%, and cash flows cover dividends with a 50.6% cash payout ratio. Trading below its estimated fair value by 13.6%, it offers a competitive yield of 3.36%. Recent AGM approved a dividend of ₹6.20 per share and an increase in authorized share capital, reflecting ongoing financial adjustments.

• Navigate through the intricacies of Redington with our comprehensive dividend report here.

• The analysis detailed in our Redington valuation report hints at an deflated share price compared to its estimated value.

Ujjivan Small Finance Bank

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Ujjivan Small Finance Bank Limited offers a range of banking and financial services in India, with a market capitalization of ₹76.52 billion.

Operations: Ujjivan Small Finance Bank Limited's revenue is primarily derived from Retail Banking at ₹58.71 billion, followed by Treasury operations contributing ₹7.58 billion, and Wholesale Banking adding ₹1.44 billion.

Dividend Yield: 3.8%

Ujjivan Small Finance Bank's dividend yield of 3.79% ranks in the top 25% among Indian payers, yet its two-year history is marked by volatility and unreliability. Despite this, dividends are well-covered with a low payout ratio of 22.6%, projected to decrease to 16.5% in three years. The bank trades at a significant discount to fair value estimates and has recently secured an Authorised Dealer Category 1 Licence from the RBI, enhancing its operational scope.

• Take a closer look at Ujjivan Small Finance Bank's potential here in our dividend report.

• Our comprehensive valuation report raises the possibility that Ujjivan Small Finance Bank is priced lower than what may be justified by its financials.

Make It Happen

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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

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• Find companies with promising cash flow potential yet trading below their fair value.

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:CANBK NSEI:REDINGTON and NSEI:UJJIVANSFB.

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