Bharat Petroleum And Two Additional High-Yield Dividend Stocks On The Indian Exchange
The Indian market has shown robust growth, climbing 2.3% over the past week and marking a significant rise of 45% over the past year, with earnings projected to grow by 16% annually. In such a thriving environment, high-yield dividend stocks like Bharat Petroleum offer investors potential for steady income alongside capital appreciation opportunities.
Top 10 Dividend Stocks In India
Name
Dividend Yield
Dividend Rating
Balmer Lawrie Investments (BSE:532485)
3.75%
★★★★★★
Gulf Oil Lubricants India (NSEI:GULFOILLUB)
3.21%
★★★★★☆
D. B (NSEI:DBCORP)
4.66%
★★★★★☆
HCL Technologies (NSEI:HCLTECH)
3.18%
★★★★★☆
Indian Oil (NSEI:IOC)
7.93%
★★★★★☆
VST Industries (BSE:509966)
3.67%
★★★★★☆
Bharat Petroleum (NSEI:BPCL)
6.39%
★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)
3.04%
★★★★★☆
NMDC (BSE:526371)
3.04%
★★★★★☆
PTC India (NSEI:PTC)
3.47%
★★★★★☆
Click here to see the full list of 16 stocks from our Top Indian Dividend Stocks screener.
Let’s dive into some prime choices out of the screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Bharat Petroleum Corporation Limited, operating in India, is engaged in refining crude oil and marketing petroleum products with a market capitalization of approximately ₹1.43 trillion.
Operations: Bharat Petroleum’s revenue is primarily derived from its downstream petroleum segment, which generated ₹50.66 billion, and a smaller contribution from exploration and production of hydrocarbons at ₹1.92 billion.
Dividend Yield: 6.4%
Bharat Petroleum Corporation Limited (BPCL) offers a dividend yield of 6.39%, placing it in the top 25% of Indian market payers. Despite its attractive yield, BPCL has a history of unstable and volatile dividends over the past decade. The company’s dividends are well-covered by both earnings and cash flow, with payout ratios at 33.3% and 34.6% respectively, suggesting sustainability from an income perspective. However, earnings are expected to decline by an average of 13% annually over the next three years, which could pressure future payouts. Recent financials show a significant drop in net income from INR 106,443 million to INR 28,415.5 million year-over-year as of Q1 ending June 30, 2024.
NSEI:BPCL Dividend History as at Jul 2024
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Gulf Oil Lubricants India Limited, with a market capitalization of ₹61.28 billion, engages in the manufacturing, marketing, and trading of lubricants for the automotive and industrial sectors in India.
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Operations: Gulf Oil Lubricants India Limited generates its revenue primarily through the sale of lubricants, totaling ₹33.01 billion.
Dividend Yield: 3.2%
Gulf Oil Lubricants India has shown robust earnings growth with a 32.6% increase last year and forecasts suggest an 11.9% annual growth rate moving forward. Despite its appealing price-to-earnings ratio of 19.9x, which is below the market average, the company’s dividend history is marked by inconsistency, with significant fluctuations in payments over the past decade. However, its current dividend yield stands at 3.21%, ranking it in the top quartile of Indian dividend payers, supported by a payout ratio of 57.4% from earnings and a cash payout ratio of 62.7%. Recent events include key management changes and auditor rotation, indicating potential shifts in corporate governance practices.
NSEI:GULFOILLUB Dividend History as at Jul 2024
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Indian Oil Corporation Limited operates in refining, pipeline transportation, and marketing of petroleum products both domestically and internationally, with a market capitalization of approximately ₹2.43 trillion.
Operations: Indian Oil Corporation Limited generates revenue primarily from petroleum products and petrochemicals, with ₹83.35 billion and ₹2.62 billion respectively.
Dividend Yield: 7.9%
Indian Oil Corporation Limited (IOC) exhibits a mixed track record in dividend reliability, with payments showing volatility over the past decade. Despite this, IOC’s dividends are well-supported financially, evidenced by a cash payout ratio of 56.8% and an earnings payout ratio of 39.6%, ensuring dividends are covered by both cash flows and earnings. The company’s dividend yield is notably high at 7.93%, placing it among the top quartile of Indian dividend payers. However, prospective investors should be cautious as earnings are expected to decline annually by 22.3% over the next three years, potentially impacting future dividend sustainability. Additionally, IOC maintains a high level of debt which could influence its financial flexibility.
NSEI:IOC Dividend History as at Jul 2024
Key TakeawaysSearching for a Fresh Perspective?
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:BPCL NSEI:GULFOILLUB and NSEI:IOC.
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