In This Article:
In the search for steady dividends from Indian stocks, investors often face a mix of attractive and risky options. A critical factor to consider is the dividend cover, particularly in companies with high payout ratios. Such ratios might suggest higher immediate returns but can also indicate underlying financial stress or a lack of sustainability in dividend payments, as seen with Mahindra Logistics.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Balmer Lawrie Investments (BSE:532485) | 4.12% | ★★★★★★ |
| Bhansali Engineering Polymers (BSE:500052) | 2.83% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 3.65% | ★★★★★☆ |
| ITC (NSEI:ITC) | 3.20% | ★★★★★☆ |
| Castrol India (BSE:500870) | 2.99% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.41% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.23% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.72% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.27% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.67% | ★★★★★☆ |
Click here to see the full list of 18 stocks from our Top Dividend Stocks screener.
We'll examine a selection from our screener results and one of the companies to potentially avoid.
Top Pick
Monte Carlo Fashions
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Monte Carlo Fashions Limited specializes in the production and sale of woolen, cotton, and blended fabric garments both in India and abroad, with a market capitalization of approximately ₹14.22 billion.
Operations: The company generates ₹10.62 billion primarily from the manufacturing and trading of textile garments.
Dividend Yield: 2.9%
Monte Carlo Fashions, despite a challenging fiscal year with a net loss in Q4 2024 and reduced annual profits, maintained its dividend commitment, declaring a final dividend of INR 20 per share. This is supported by a sustainable payout ratio of 69.2% and cash payout ratio of 88.8%, contrasting sharply with some peers struggling with overly high payout ratios. However, the company's dividends have shown volatility over the past nine years, indicating potential concerns for those seeking stable income streams from dividends.
One To Reconsider
Mahindra Logistics
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Mahindra Logistics Limited operates in providing integrated logistics and mobility solutions both in India and globally, with a market capitalization of approximately ₹37.31 billion.
Operations: The company generates revenue primarily through two segments: Supply Chain Management at ₹51.78 billion and Enterprise Mobility Services at ₹3.28 billion.