Avoid UCO Bank And Explore This One Attractive Dividend Stock
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When considering dividend stocks, it's essential to look beyond the yield and examine the growth history of these dividends. A declining or stagnant dividend can often be a red flag, indicating potential underlying financial issues within a company. In this article, we will discuss two specific stocks in India: one that has shown troubling signs in its dividend growth and another that presents an attractive option for those interested in reliable dividend income.
Top 10 Dividend Stocks In India
| Name | Dividend Yield | Dividend Rating |
| Balmer Lawrie Investments (BSE:532485) | 4.13% | ★★★★★★ |
| Bhansali Engineering Polymers (BSE:500052) | 3.06% | ★★★★★★ |
| D. B (NSEI:DBCORP) | 3.80% | ★★★★★☆ |
| Castrol India (BSE:500870) | 3.50% | ★★★★★☆ |
| ITC (NSEI:ITC) | 3.23% | ★★★★★☆ |
| HCL Technologies (NSEI:HCLTECH) | 3.50% | ★★★★★☆ |
| Indian Oil (NSEI:IOC) | 8.32% | ★★★★★☆ |
| VST Industries (BSE:509966) | 3.69% | ★★★★★☆ |
| Redington (NSEI:REDINGTON) | 3.29% | ★★★★★☆ |
| PTC India (NSEI:PTC) | 3.73% | ★★★★★☆ |
Click here to see the full list of 18 stocks from our Top Dividend Stocks screener.
Let's take a closer look at one of our picks from the screened companies and one you may wish to avoid.
Top Pick
D. B
Simply Wall St Dividend Rating: ★★★★★☆
Overview: D. B. Corp Limited operates in newspaper printing, publishing, radio broadcasting, and digital news platforms, with a market capitalization of approximately ?60.97 billion.
Operations: The company generates revenue primarily through its printing and publishing business, which brought in ?22.43 billion, and its radio broadcasting segment, contributing ?1.59 billion.
Dividend Yield: 3.8%
DBCORP, with a Price-To-Earnings ratio of 14.3x, trades below the Indian market average of 33.4x, indicating potential value. Its dividend yield stands at 3.8%, ranking in the top quartile of Indian dividend payers. Despite past volatility in dividend payments, recent increases and a payout ratio of 54.4% suggest improvements in sustainability. The firm's dividends are well-covered by earnings and cash flows (cash payout ratio: 43.6%). Recent executive appointments and robust annual earnings growth underscore a strengthening financial position.
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Unlock comprehensive insights into our analysis of D. B stock in this dividend report.
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Our valuation report here indicates D. B may be undervalued.
One To Reconsider
UCO Bank
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: UCO Bank offers a variety of banking and financial services both in India and globally, with a market capitalization of approximately ?64.49 billion.
Operations: The bank's revenue is derived from treasury operations (?82.52 billion), corporate/wholesale banking (?91.23 billion), and retail banking operations (?76.97 billion).