In the past year, India's market has shown robust growth with a 39% increase, despite a recent 1.5% drop over the last 7 days. In this context of promising earnings growth forecasted at 17% annually, dividend stocks like GHCL can be particularly appealing for investors seeking steady income combined with potential capital appreciation in a dynamic market environment.
Top 10 Dividend Stocks In India
Name
Dividend Yield
Dividend Rating
Bhansali Engineering Polymers (BSE:500052)
4.12%
★★★★★★
Castrol India (BSE:500870)
3.95%
★★★★★☆
HCL Technologies (NSEI:HCLTECH)
3.93%
★★★★★☆
ITC (NSEI:ITC)
3.03%
★★★★★☆
Indian Oil (NSEI:IOC)
8.79%
★★★★★☆
Balmer Lawrie Investments (BSE:532485)
4.20%
★★★★★☆
VST Industries (BSE:509966)
3.80%
★★★★★☆
Gujarat Narmada Valley Fertilizers & Chemicals (NSEI:GNFC)
Overview: GHCL Limited operates in India, focusing on the production and sale of inorganic chemicals and textile products, with a market capitalization of approximately ?48.63 billion.
Operations: GHCL Limited generates its revenue primarily through the sale of inorganic chemicals and textile products.
Dividend Yield: 3.4%
GHCL Limited has experienced a decline in sales and net income for the fiscal year ending March 2024, with sales dropping from INR 45.51 billion to INR 34.47 billion and net income from INR 11.42 billion to INR 7.94 billion. Despite this downturn, GHCL's dividend sustainability appears robust due to low payout ratios: earnings cover at 14.9% and cash flow cover at 24.3%. However, the company’s dividend history over the past decade has been marked by volatility and unreliability, raising concerns about the consistency of future payouts amidst declining earnings forecasts averaging -3.5% annually over the next three years.
Overview: Gujarat Narmada Valley Fertilizers & Chemicals Limited, operating both domestically and internationally, is engaged in the manufacturing and marketing of fertilizers and chemicals, with a market capitalization of approximately ?96.55 billion.
Operations: Gujarat Narmada Valley Fertilizers & Chemicals Limited generates ?49.98 billion from its chemicals segment and ?29.56 billion from its fertilizers segment.
Dividend Yield: 4.6%
Gujarat Narmada Valley Fertilizers & Chemicals maintains a sustainable dividend with a payout ratio of 31.7% and cash payout ratio of 30.9%, indicating strong coverage by both earnings and cash flows. However, the company's profit margin has declined to 8.7% from last year’s 16.6%. Despite a history of increasing dividends over the past decade, the payments have been inconsistent, showing volatility in annual distributions which raises concerns about future reliability amidst fluctuating profits.
Overview: Gulf Oil Lubricants India Limited, with a market capitalization of ?46.90 billion, specializes in manufacturing, marketing, and trading lubricants for the automotive and industrial sectors across India.
Operations: Gulf Oil Lubricants India generates its revenue primarily from the lubricants segment, amounting to ?32.22 billion.
Dividend Yield: 3.4%
Gulf Oil Lubricants India has demonstrated a mixed record in dividend reliability, with significant fluctuations over the past decade. Despite this, the company's dividends are well-supported by a payout ratio of 71% and a cash payout ratio of 51.8%, suggesting that both earnings and cash flows are adequate to maintain current dividend levels. The firm's earnings growth is projected at 12.04% annually, enhancing its potential for sustained dividends. However, recent regulatory challenges including a GST demand for INR 9.36 million could impact financial stability.
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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:GHCL NSEI:GULFOILLUB and
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