Dividend Yield: 3.3%

Union Bank of India offers a dividend yield in the top 25% of Indian payers, with a low payout ratio of 18.8%, indicating strong coverage by earnings. Despite recent earnings growth, its dividend history has been volatile over the past decade. The stock trades significantly below estimated fair value, suggesting potential upside, though investors should be cautious about its high level of bad loans at 4.5%, which could affect financial stability and future dividends.

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

• Insights from our recent valuation report point to the potential undervaluation of Union Bank of India shares in the market.

Uniparts India

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

Overview: Uniparts India Limited, along with its subsidiaries, manufactures and sells engineering systems, solutions, and assemblies mainly for off-highway vehicles across India, the United States, the Asia Pacific, Europe, Japan, and other international markets; it has a market cap of ?19.45 billion.

Operations: The revenue segment for Uniparts India Limited is primarily derived from Linkage Parts and Components for Off-Highway Vehicles, amounting to ?11.04 billion.

Dividend Yield: 4.8%

Uniparts India recently approved two interim dividends totaling INR 14 per share, reflecting a strong yield in the top 25% of Indian dividend payers. However, its dividend history is brief and volatile, with payments only established over the past two years. Despite this instability, dividends are well-covered by earnings and cash flows with payout ratios of 73.8% and 56.7%, respectively. The stock trades slightly below fair value compared to peers, offering reasonable investment potential amidst recent board changes and stable financials.

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

• Our expertly prepared valuation report Uniparts India implies its share price may be lower than expected.

Summing It All Up

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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:BANKBARODA NSEI:UNIONBANK and NSEI:UNIPARTS.

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