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Over the last 7 days, the Indian market has dropped 1.7%, but it has risen by 43% over the past year, with earnings forecasted to grow by 17% annually. In such a dynamic environment, dividend stocks like Coal India and two other leading companies can offer investors a combination of income and potential capital appreciation.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Castrol India (BSE:500870) | 3.12% | ★★★★★★ |
| Balmer Lawrie Investments (BSE:532485) | 3.74% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.00% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.27% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.62% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.28% | ★★★★★☆ |
| Bharat Petroleum (NSEI:BPCL) | 6.30% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.26% | ★★★★★☆ |
| Bank of Baroda (NSEI:BANKBARODA) | 3.09% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.72% | ★★★★★☆ |
Click here to see the full list of 19 stocks from our Top Indian Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Coal India
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Coal India Limited, along with its subsidiaries, focuses on the production and marketing of coal and coal products in India, with a market cap of ₹3.27 trillion.
Operations: Coal India Limited's revenue primarily comes from its coal mining and services segment, which generated ₹1.35 trillion.
Dividend Yield: 4.8%
Coal India has shown growth in dividend payments over the past decade, but these have been volatile and unreliable. The company’s recent earnings report showed a net income of ₹109.59 billion for Q1 2024, with a P/E ratio of 8.6x indicating good value compared to the Indian market average. However, its high cash payout ratio (1226%) suggests dividends are not well covered by free cash flows, raising concerns about sustainability despite a low earnings payout ratio (42%).
Gulf Oil Lubricants India
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Gulf Oil Lubricants India Limited manufactures, markets, and trades lubricants for the automobile and industrial sectors in India with a market cap of ₹60.81 billion.
Operations: Gulf Oil Lubricants India Limited generates revenue by manufacturing and trading lubricants specifically tailored for the automobile and industrial sectors in India.
Dividend Yield: 3.2%
Gulf Oil Lubricants India offers a dividend yield of 3.24%, placing it in the top 25% of Indian dividend payers. The company's dividends are covered by earnings (payout ratio: 57.4%) and free cash flows (cash payout ratio: 62.7%). Despite recent growth in earnings and revenue, its dividend history has been volatile over the past decade, raising concerns about reliability. Recent leadership changes aim to drive growth, particularly in E Mobility and digital transformation initiatives.