Can you guess what the third largest economy in the world is? Not the United States, not China. It is India, which also happens to be the second fastest growing major economy in the world. If you think tech is their biggest industry, you would be wrong. IT accounts for only about 1% of the total GDP; however, India ranks second worldwide in farm output. It also has the fourth-largest reserves in the world of coal.
There are plenty of India stocks that US investors can buy and dividends are available on more than half a dozen of the Indian stocks that trade in the United States, according to WallStreetNewsNetwork.com. For example, Tata Motors Ltd. (NYSE:TTM), a major automobile manufacturer in India also makes and markets utility vehicles, trucks, buses, and defense vehicles. It produces gasoline, electric and hybrid vehicles. The stock pays a yield of 1.1% and trades at only 7.8 times forward earnings. Quarterly revenues grew 36.8% for the quarter ending September 30. The company also has about $3.45 per share in cash.
Another Indian stock that pays a dividend is ICICI Bank Ltd. (NYSE:IBN), the second largest bank in India and the largest private sector bank in India based on market capitalization. It currently yields 1.1% and has a forward price to earnings ratio of 16. Quarterly earnings jumped 79% on a revenue gain of 13.5% for the quarter ending March 31.
Wipro Ltd. (NYSE:WIT) is a semi-conglomerate, which sells software services, computer hardware such as computers, servers, and laptops, and personal care products, and lighting products. It has also invested in renewable energy projects. The stock has a yield of 0.8% and a forward P/E of 29. Earnings for the quarter ending September 30 were up 9.8%.
Disclosure: Author didn't own any of the above at the time the article was written.