Unveiling 3 Premier Dividend Stocks Yielding Up To 4.7%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Amidst a backdrop of fluctuating global influences and domestic economic indicators, the Indian stock market has shown resilience, recovering from recent declines and focusing on upcoming macroeconomic data. In such a dynamic environment, dividend stocks can offer investors potential stability and regular income, making them an attractive consideration in the current market scenario.
Overview: HCL Technologies Limited is a global company specializing in software development, business process outsourcing, and infrastructure management services, with a market capitalization of approximately ₹3.88 trillion.
Operations: HCL Technologies Limited generates revenue primarily through three segments: HCL Software at $1.41 billion, IT and Business Services at $9.80 billion, and Engineering and R&D Services at $2.12 billion.
Dividend Yield: 3.6%
HCL Technologies, a significant player in the technology sector, declared an interim dividend of INR 18 per share for FY 2024-2025, reflecting its commitment to returning value to shareholders. Despite a robust dividend history, the payout ratio stands at 89.1%, suggesting a high proportion of earnings distributed as dividends. This level raises concerns about sustainability if earnings were to face pressure. However, with cash flows covering dividends comfortably (cash payout ratio at 65.1%), and a consistent track record of revenue and profit growth (annual growth of approximately 5.9% over the past five years), HCL Technologies maintains its appeal among dividend investors in India’s tech landscape.
Overview: Oil and Natural Gas Corporation Limited, operating both domestically and internationally, is engaged in the exploration, development, and production of crude oil and natural gas, with a market capitalization of approximately ₹3.28 trillion.
Operations: Oil and Natural Gas Corporation Limited generates revenue primarily through Refining & Marketing (₹56.75 billion), and Exploration and Production with Onshore (₹4.39 billion) and Offshore (₹9.43 billion) operations in India, alongside international sales amounting to ₹0.96 billion.
Dividend Yield: 4.7%
Oil and Natural Gas Corporation Limited (ONGC) has shown a mixed performance in dividend reliability, with payments being volatile over the past decade. Despite this, dividends are well-supported by earnings and cash flows, with a payout ratio of 31.3% and a cash payout ratio of 32.5%, respectively. The company's recent final dividend recommendation is INR 2.50 per share for FY 2023-24. Additionally, ONGC's involvement in potential acquisitions indicates strategic moves to diversify operations, which could impact future financial stability and dividend policies.
Overview: Redington Limited operates as a supply chain solutions provider both in India and internationally, with a market capitalization of approximately ₹163.23 billion.
Operations: Redington Limited generates its revenue from providing supply chain solutions across India and globally.
Dividend Yield: 3.4%
Redington's dividend yield stands at 3.45%, ranking in the top 25% of Indian dividend payers, despite a history of volatility in its dividend payments over the past decade. The company maintains a low payout ratio of 40.4% and a cash payout ratio of 58.8%, indicating that dividends are well-covered by both earnings and cash flows. Trading at a price-to-earnings ratio of 13.4x, Redington offers value compared to its industry peers. Recent financial results show steady earnings growth, with the board set to consider future dividends on June 4, 2024.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NSEI:HCLTECHNSEI:ONGC and
