The Indian market has experienced a flat performance over the past week but has seen an impressive 40% rise in the last 12 months, with earnings forecasted to grow by 17% annually. In this dynamic environment, dividend stocks can offer investors a blend of income and potential growth, making them an attractive option for those looking to capitalize on steady returns amidst rising market conditions.

Top 10 Dividend Stocks In India

Click here to see the full list of 19 stocks from our Top Indian Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Bank of Baroda

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Bank of Baroda Limited offers a range of banking products and services to individuals, government departments, and corporate customers both in India and internationally, with a market cap of ₹1.28 trillion.

Operations: Bank of Baroda Limited's revenue segments include Treasury at ₹316.82 billion, Other Banking Operations at ₹110.76 billion, Corporate/Wholesale Banking at ₹502.78 billion, and Retail Banking comprising Digital Banking and Other Retail Banking totaling ₹512.25 billion.

Dividend Yield: 3.1%

Bank of Baroda's dividend yield is in the top 25% of Indian market payers, supported by a low payout ratio of 20.9%, indicating dividends are well covered by earnings. However, past dividend payments have been volatile and unreliable. Recent strategic initiatives include launching a co-branded travel debit card with EaseMyTrip.com, enhancing customer offerings but not directly impacting dividends. The bank's high level of bad loans at 2.9% could pose risks to future dividend stability.

• Get an in-depth perspective on Bank of Baroda's performance by reading our dividend report here.

• Our comprehensive valuation report raises the possibility that Bank of Baroda is priced lower than what may be justified by its financials.

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 ₹37.35 billion.

Operations: Swaraj Engines Limited generates revenue of ₹14.37 billion from its diesel engines, components, and spare parts for tractors in India.

Dividend Yield: 3.1%

Swaraj Engines offers a dividend yield of 3.09%, placing it in the top 25% among Indian dividend payers, yet its dividends have been volatile and unreliable over the past decade. The high payout ratio of 83.7% indicates coverage by earnings, but cash flows are insufficient with a cash payout ratio at 122%. Recent leadership changes and an ongoing tax penalty appeal may influence future financial strategies but don't directly impact current dividends.

• Click here to discover the nuances of Swaraj Engines with our detailed analytical dividend report.

• In light of our recent valuation report, it seems possible that Swaraj Engines is trading behind its estimated value.

Union Bank of India

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Union Bank of India offers a range of banking products and services, with a market cap of ₹856.64 billion.

Operations: Union Bank of India's revenue is primarily derived from Treasury Operations (₹317.49 billion), Corporate/Wholesale Banking (₹440.12 billion), and Retail Banking Operations, which include Digital Banking Operations (₹10.23 billion) and Other Retail Banking Operations (₹397.16 billion).

Dividend Yield: 3.2%

Union Bank of India provides a dividend yield of 3.21%, ranking it among the top 25% of Indian dividend payers, though its dividends have been volatile and unreliable over the past decade. The bank maintains a low payout ratio of 18.8%, suggesting dividends are well covered by earnings despite a high level of bad loans at 4.7%. Recent regulatory penalties and ongoing internal reviews may impact future financial strategies but not current dividend payments.

• Click here and access our complete dividend analysis report to understand the dynamics of Union Bank of India.

• The valuation report we've compiled suggests that Union Bank of India's current price could be quite moderate.

Where To Now?

• Navigate through the entire inventory of 19 Top Indian Dividend Stocks here.

• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.

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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:BANKBARODA NSEI:SWARAJENG and NSEI:UNIONBANK.

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