In This Article:
Over the last 7 days, the Indian market has dropped 1.0%, but it has risen by 39% over the past year with earnings forecasted to grow by 17% annually. In this context, selecting dividend stocks like Canara Bank can provide stability and income potential amidst fluctuating market conditions.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Castrol India (BSE:500870) | 3.03% | ★★★★★★ |
| Balmer Lawrie Investments (BSE:532485) | 3.89% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.17% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 7.93% | ★★★★★☆ |
| Bharat Petroleum (NSEI:BPCL) | 5.96% | ★★★★★☆ |
| Balmer Lawrie (BSE:523319) | 3.07% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.12% | ★★★★★☆ |
| Canara Bank (NSEI:CANBK) | 3.11% | ★★★★★☆ |
| Bank of Baroda (NSEI:BANKBARODA) | 3.22% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.62% | ★★★★★☆ |
Click here to see the full list of 17 stocks from our Top Indian Dividend Stocks screener.
We'll examine a selection from our screener results.
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 ₹937.72 billion.
Operations: Canara Bank's revenue segments include Treasury Operations (₹255.75 billion), Life Insurance Operation (₹120.19 billion), Wholesale Banking Operations (₹430.48 billion), Retail Banking Operations - Digital Banking (₹22.30 million), and Other Retail Banking Operations (₹632.28 billion).
Dividend Yield: 3.1%
Canara Bank's recent dividend announcement of ₹3.22 per share underscores its commitment to returning value to shareholders, supported by a low payout ratio of 19.1%, indicating strong earnings coverage. Despite the bank's high level of non-performing loans (4.3%), its dividends remain sustainable and forecasted to be well-covered in three years with a 16.5% payout ratio. However, past dividend payments have been volatile, raising concerns about long-term reliability for income-focused investors.
Indian Oil
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Indian Oil Corporation Limited, with a market cap of ₹2.43 trillion, refines, pipeline transports, and markets petroleum products both in India and internationally through its subsidiaries.
Operations: Indian Oil Corporation Limited generates revenue primarily from petroleum products (₹8.25 trillion) and petrochemicals (₹262.95 billion).
Dividend Yield: 7.9%
Indian Oil Corporation Limited's recent dividend increase to ₹7 per share highlights its commitment to shareholder returns, supported by a payout ratio of 39.6%. Despite a volatile dividend history and declining earnings forecast, the dividends are well-covered by both earnings and cash flows. The company's price-to-earnings ratio of 7.9x suggests good value compared to the Indian market average of 34.5x, though high debt levels remain a concern for long-term sustainability.