In This Article:
In the last week, the Indian market has stayed flat, but it is up 45% over the past year with earnings forecast to grow by 17% annually. In such a dynamic environment, selecting dividend stocks that offer both stability and consistent returns can be a prudent strategy for investors.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Castrol India (BSE:500870) | 3.03% | ★★★★★★ |
| Balmer Lawrie Investments (BSE:532485) | 3.55% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.29% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.33% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.62% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.21% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.26% | ★★★★★☆ |
| Canara Bank (NSEI:CANBK) | 3.06% | ★★★★★☆ |
| Bank of Baroda (NSEI:BANKBARODA) | 3.17% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.83% | ★★★★★☆ |
Click here to see the full list of 20 stocks from our Top Indian Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
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 ₹954.78 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 (₹632.28 billion).
Dividend Yield: 3.1%
Canara Bank recently declared a dividend of ₹3.22 per share for FY 2023-24, reflecting a low payout ratio of 19.1%, indicating strong earnings coverage. However, its dividend history has been volatile over the past decade, despite recent increases. The bank's net income for Q1 2024 was ₹40.68 billion, up from ₹37.39 billion YoY, but EPS dropped significantly to ₹4.48 from ₹20.61 YoY due to various factors affecting profitability and operational efficiency changes within the bank's management structure.
-
Take a closer look at Canara Bank's potential here in our dividend report.
-
Our valuation report here indicates Canara Bank may be undervalued.
Monte Carlo Fashions
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Monte Carlo Fashions Limited manufactures and trades wool, cotton, cotton blended, knitted, and woven apparel in India and internationally, with a market cap of ₹13.60 billion.
Operations: Monte Carlo Fashions Limited generates revenue primarily from the manufacturing and trading of textile garments, amounting to ₹10.62 billion.
Dividend Yield: 3%
Monte Carlo Fashions' dividend yield of 3.05% places it among the top 25% of Indian dividend payers, though its unstable track record and recent net loss of ₹132.7 million for Q1 2024 raise concerns. The company's payout ratio stands at a reasonable 69.2%, covered by earnings, but cash flow coverage is tighter at 88.8%. Despite increasing dividends over nine years, payments have been volatile and not consistently reliable for investors seeking stable income.