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The market is up 2.6% in the last 7 days, with all sectors gaining ground. In the last year, the market has climbed 44%, and earnings are expected to grow by 17% per annum over the next few years. In such a robust environment, dividend stocks can offer both steady income and potential for capital appreciation. Here are three top dividend stocks to consider on the Indian exchange that align well with these promising market conditions.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Balmer Lawrie Investments (BSE:532485) | 4.24% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.04% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.10% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.39% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.05% | ★★★★★☆ |
| Bharat Petroleum (NSEI:BPCL) | 5.98% | ★★★★★☆ |
| NMDC (BSE:526371) | 3.26% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.00% | ★★★★★☆ |
| Oil and Natural Gas (NSEI:ONGC) | 3.74% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.72% | ★★★★★☆ |
Click here to see the full list of 16 stocks from our Top Indian Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Bharat Petroleum
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bharat Petroleum Corporation Limited primarily engages in refining crude oil and marketing petroleum products in India and internationally, with a market cap of ₹1.52 trillion.
Operations: Bharat Petroleum Corporation Limited generates revenue from two main segments: Downstream Petroleum, which accounts for ₹5.07 billion, and Exploration & Production of Hydrocarbons, contributing ₹1.92 billion.
Dividend Yield: 6%
Bharat Petroleum Corporation Limited (BPCL) offers a compelling dividend yield of 5.98%, placing it in the top 25% of Indian dividend payers. Despite an attractive Price-To-Earnings ratio at 8x, BPCL's dividend history has been volatile with significant annual drops over the past decade. However, its dividends are well-covered by both earnings (33.3% payout ratio) and cash flows (34.6% cash payout ratio). Recent financials show declining net income, which may affect future payouts.
Coal India
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Coal India Limited, along with its subsidiaries, is involved in the production and marketing of coal and coal products in India, with a market cap of ₹3.28 trillion.
Operations: Coal India Limited generates revenue primarily from its coal mining and services segment, amounting to ₹1.35 trillion.