In This Article:
The Indian market remained flat over the last week but is up 44% over the past year, with earnings expected to grow by 17% per annum. In this environment, dividend stocks like Bank of Baroda and two other leading companies can offer stability and income potential for investors.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Castrol India (BSE:500870) | 3.18% | ★★★★★★ |
| Balmer Lawrie Investments (BSE:532485) | 4.30% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.06% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.25% | ★★★★★☆ |
| NMDC (BSE:526371) | 3.36% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.27% | ★★★★★☆ |
| Balmer Lawrie (BSE:523319) | 3.23% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.26% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.69% | ★★★★★☆ |
| Bank of Baroda (NSEI:BANKBARODA) | 3.11% | ★★★★★☆ |
Click here to see the full list of 17 stocks from our Top Indian Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Bank of Baroda
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bank of Baroda Limited offers a range of banking products and services to individuals, government departments, and corporate customers both in India and internationally, with a market cap of ₹1.26 trillion.
Operations: Bank of Baroda's revenue segments include Treasury (₹316.82 billion), Other Banking Operations (₹110.76 billion), Corporate/Wholesale Banking (₹502.78 billion), and Retail Banking, which is divided into Digital Banking (₹7.40 million) and Other Retail Banking (₹512.25 billion).
Dividend Yield: 3.1%
Bank of Baroda's dividend payments, while currently covered by earnings with a low payout ratio of 20.9%, have been volatile over the past decade. Recent fixed-income offerings totaling INR 150 billion indicate strong capital management, but the bank faces challenges with a high level of bad loans at 2.9%. Despite these issues, Bank of Baroda's dividends are forecast to remain covered by earnings in three years, and it offers a competitive dividend yield in the Indian market.
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Take a closer look at Bank of Baroda's potential here in our dividend report.
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Upon reviewing our latest valuation report, Bank of Baroda's share price might be too pessimistic.
Indian Oil
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Indian Oil Corporation Limited, with a market cap of ₹2.34 trillion, refines, pipeline transports, and markets petroleum products both in India and internationally through its subsidiaries.
Operations: Indian Oil Corporation Limited's revenue segments include ₹262.95 billion from Petrochemicals and ₹8.25 trillion from Petroleum Products.
Dividend Yield: 8.2%
Indian Oil Corporation's dividend payments have been volatile over the past decade but are currently well-covered by earnings (payout ratio: 39.6%) and free cash flows (cash payout ratio: 56.8%). With a dividend yield of 8.25%, it ranks in the top 25% of Indian market payers. Despite recent executive changes, including the departure of Chairman Shri Shrikant Madhav Vaidya, IOC declared a final dividend of ₹7 per share for FY2023-24 at its AGM in August 2024.