At a time when the markets are falling, it would be a good idea to accumulate stocks that are great on dividend yields. The markets are now offering good opportunities for investors looking to buy into dividend yielding stocks. Here are three of these:

ONGC

Based on the dividend ONGC declared last year, the dividend yield is near that 5.5 per cent mark. The good thing about the ONGC stock is that based on fundamentals too the stock does deserve investor attention.

For example, the stock is traded at just 6 times one year trailing earnings. We do not expect any significant deterioration in the financials and the company is expected to show improved earnings. Even if you assume that the company does display the same earnings as last year, the shares are attractive at a p/e of 6 times. The price to book too is attractive at around 0.80 times. ONGC is a good stock to buy at the current levels. We would not be surprised if the government pushes state owned companies to declare higher dividends, given the fiscal constraints. If so, your yield could improve even further.

Hindustan Zinc

Hindustan Zinc is another stock that is attractive from a long-term view as well as the dividends. It is difficult to predict what kind of dividend the company will declare. Based on the last year's dividend of Rs 20 per share the stock is trading at a yield of 9.65 per cent. We do not anticipate the company declaring a dividend of Rs 20 again this year. Even if it does declare around that Rs 15 range, the yield would still be in the 7 per cent range, which is not bad at all.

Zinc prices are expected to stay firm in the coming days, given the closure of some zinc facilities around the world. A good stock to buy at the current levels of Rs 207.

Karnataka Bank

Though the stocks from the sector have been plagued with worries, Karnataka Bank had had this record of paying dividend for many years now.

In fact, last year the bank declared a dividend of Rs 3 per share and based on the same, the dividend yeidl works to near 5 per cent. We tried to mine data and we could see that the bank has been declaring dividends for many years now. In fact, we have data from 2003 and it shows the bank has never stopped dividend since then. In fact, we do not have data before 2003, but, it may have been declaring even much before that. To have such an uninterrupted dividend paying track record is truly exceptional for a smaller sized bank.

Yes, banks are facing difficult situation currently and we would have to wait for it to declare quarterly numbers.

Conclusion

Some of these stocks declare dividends every year, while some of them declare at least twice a year. Those who are looking at regular income especially people who are retired this would be a good opportunity to buy. Having said that it is dificult to predict what dividends would be declared.