Yahoo Finance Avoid UCO Bank And Explore This One Attractive Dividend Stock
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.
Unlock comprehensive insights into our analysis of D. B stock in this dividend report.
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).
Dividend Yield: 0.5%
UCO Bank's dividend history reveals a decline over the past decade, indicating an unstable payout pattern. With a current dividend yield of 0.52%, it falls below the top quartile of Indian dividend payers, which stands at 1.11%. Additionally, the bank's high bad loans ratio at 3.6% raises concerns about its financial health and ability to sustain future dividends. Despite a low payout ratio of 20.2%, suggesting earnings coverage, the overall picture for dividend reliability and growth remains bleak for UCO Bank.
Key Takeaways
Unlock our comprehensive list of 18 Top Dividend Stocks by clicking here.
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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:DBCORPNSEI:UCOBANK.
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