Yahoo Finance 3 High Yield Dividend Stocks In India With Yields Up To 8.3%
The Indian stock market has shown robust growth, rising 2.9% in the last week and achieving a remarkable 45% increase over the past year, with earnings projected to grow by 16% annually. In this dynamic environment, high-yield dividend stocks can be particularly attractive for investors looking for both stability and strong income potential.
Top 10 Dividend Stocks In India
Name | Dividend Yield | Dividend Rating |
Bhansali Engineering Polymers (BSE:500052) | 4.08% | ★★★★★★ |
Castrol India (BSE:500870) | 3.87% | ★★★★★☆ |
HCL Technologies (NSEI:HCLTECH) | 3.82% | ★★★★★☆ |
D-Link (India) (NSEI:DLINKINDIA) | 3.08% | ★★★★★☆ |
Indian Oil (NSEI:IOC) | 8.34% | ★★★★★☆ |
Balmer Lawrie Investments (BSE:532485) | 3.50% | ★★★★★☆ |
Gujarat Narmada Valley Fertilizers & Chemicals (NSEI:GNFC) | 4.51% | ★★★★★☆ |
VST Industries (BSE:509966) | 3.70% | ★★★★★☆ |
Redington (NSEI:REDINGTON) | 3.45% | ★★★★★☆ |
PTC India (NSEI:PTC) | 3.44% | ★★★★★☆ |
Click here to see the full list of 22 stocks from our Top Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Indian Oil
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Indian Oil Corporation Limited operates in refining, pipeline transportation, and marketing of petroleum products across India, with a market capitalization of approximately ₹2.31 trillion.
Operations: Indian Oil Corporation Limited generates significant revenue from two primary segments: Petrochemicals, which brought in ₹2.62 billion, and Petroleum Products, accounting for ₹83.35 billion.
Dividend Yield: 8.3%
Indian Oil Corporation Limited, a significant player in the Indian energy sector, declared a final dividend of INR 7.00 per share for fiscal year 2023-2024, reflecting its commitment to shareholder returns despite recent fluctuations in earnings and management changes. The company's net income surged to INR 417.30 billion from INR 97.92 billion the previous year, showcasing robust profit growth. However, this financial upliftment is shadowed by a high level of debt and an unstable dividend track record over the last decade, raising concerns about long-term sustainability amidst forecasted declines in earnings.
Take a closer look at Indian Oil's potential here in our dividend report.
Our valuation report here indicates Indian Oil may be undervalued.
Oil and Natural Gas
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Oil and Natural Gas Corporation Limited, operating both domestically and internationally, is involved in the exploration, development, and production of crude oil and natural gas with a market capitalization of approximately ₹3.57 trillion.
Operations: Oil and Natural Gas Corporation Limited generates revenue primarily through refining and marketing, which contributes ₹56.75 billion, followed by offshore exploration and production at ₹9.43 billion, onshore exploration and production at ₹4.39 billion, and international operations accounting for ₹0.96 billion.
Dividend Yield: 4.3%
Oil and Natural Gas Corporation (ONGC) offers a dividend yield of 4.32%, ranking in the top quartile of Indian dividend payers. Despite this attractive yield, ONGC's dividend history has been marked by instability, with significant fluctuations over the past decade. However, both earnings and cash flows provide solid coverage for current dividends, with payout ratios of 31.3% and 32.5% respectively. Recent financials show a substantial year-over-year net income increase to INR 492.21 billion, supporting potential future dividend sustainability despite past volatility.
Click to explore a detailed breakdown of our findings in Oil and Natural Gas' dividend report.
Our expertly prepared valuation report Oil and Natural Gas implies its share price may be too high.
Swaraj Engines
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Swaraj Engines Limited operates in India, focusing on the manufacture and sale of diesel engines, diesel engine components, and spare parts for tractors, with a market capitalization of approximately ₹30.40 billion.
Operations: Swaraj Engines Limited generates its revenue primarily from the production and sale of diesel engines and related components, totaling ₹14.19 billion.
Dividend Yield: 3.8%
Swaraj Engines has seen a 9.13% forecasted annual earnings growth and a 15.4% actual earnings growth over the past five years, suggesting potential for sustained profitability. Despite this, its dividend sustainability is under pressure with an 83.7% payout ratio and dividends poorly covered by cash flows at a 122% cash payout ratio. The recent hefty dividend announcement of INR 95 per share contrasts with these financial pressures. Additionally, a minor regulatory penalty of INR 62,667 poses no significant financial threat but highlights compliance risks.
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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:IOC NSEI:ONGC and NSEI:SWARAJENG.
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