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Over the last 7 days, the Indian market has risen 1.8%, driven by gains of 2.2% in the Financials sector, and is up 46% over the last 12 months. With earnings forecast to grow by 17% annually, investors are increasingly looking at dividend stocks that offer reliable income and potential for capital appreciation.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Castrol India (BSE:500870) | 3.01% | ★★★★★★ |
| Balmer Lawrie Investments (BSE:532485) | 4.05% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 5.01% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.12% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.24% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.09% | ★★★★★☆ |
| NMDC (BSE:526371) | 3.27% | ★★★★★☆ |
| Balmer Lawrie (BSE:523319) | 3.10% | ★★★★★☆ |
| Bank of Baroda (NSEI:BANKBARODA) | 3.01% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.82% | ★★★★★☆ |
Click here to see the full list of 18 stocks from our Top Indian Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Swaraj Engines
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Swaraj Engines Limited manufactures and sells diesel engines, components, and spare parts for tractors in India, with a market cap of ₹38.18 billion.
Operations: Swaraj Engines Limited generates ₹14.37 billion in revenue from its diesel engines, components, and spare parts for tractors in India.
Dividend Yield: 3%
Swaraj Engines has shown consistent earnings growth of 15.6% annually over the past five years and is forecasted to grow at 13.65% per year. While trading at a relatively good value with a P/E ratio of 27.2x, its dividend yield stands at 3.02%, placing it in the top quartile among Indian dividend payers. However, its dividends are not well covered by free cash flows and have been volatile over the past decade, raising concerns about sustainability despite recent increases in payouts.
Ujjivan Small Finance Bank
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ujjivan Small Finance Bank Limited provides various banking and financial services in India with a market cap of ₹83.90 billion.
Operations: Ujjivan Small Finance Bank generates revenue from three primary segments: Treasury (₹7.58 billion), Retail Banking (₹58.71 billion), and Wholesale Banking (₹1.44 billion).
Dividend Yield: 3.5%
Ujjivan Small Finance Bank's dividend yield of 3.46% positions it among the top 25% of Indian dividend payers, supported by a low payout ratio of 22.6%, indicating strong coverage by earnings. However, its dividend history is short and volatile, with only two years of payments that have not grown consistently. Additionally, the bank's high level of bad loans (2.3%) raises concerns about long-term sustainability despite trading at a significant discount to its estimated fair value and showing good relative value compared to peers.