3 Private Sector Company Stocks To Buy That Give Dividend Yields Of More Than 5%

With the markets having fallen slightly and the Sensex now falling below the 60,000 points mark, there are good opportunities emerging to buy into dividend paying stocks. Here are 3 such stocks to buy for dividend yields.

CESC

Based on last year's dividends and the current market price, the dividend yield on the CESC stock works to nearly 5.93%. However, it is not only the dividend yield of the stock of CESC that is good, but, also many brokerages are recommending a "buy" even based on fundamentals of the stock. In fact, brokerage firm Emkay Global had placed a buy call on the stock with a price target of Rs 101, which is significantly higher than the current market price of Rs 75.95. A good stock to buy for its dividend yields.

Oracle Financial Services

The stock has seen severe price damage over the last couple of years, thanks to fears of recession and a general pounding in IT and IT related stocks. However, if Oracle Financial Services does manage to retain the dividends of last year, than you are looking at dividend yields of 6.34%. Interestingly, the price of the stock around the Rs 3000 levels is showing immense resilience and this means should the markets rally, you might even see some capital gains as well. The company is a player in the banking and insurance space.

Indus Towers

Last year the company paid a dividend of Rs 11 per share, which on the basis of that translates to a yield of about close to 6%. One of the most important thing when looking at dividend stocks is to make sure that the business model is good and they are likely to retain last year's dividends. Based on that I think all of the three stocks mentioned may not have a problem. Especially, so for CESC which has a steady cash flow and good monopoly business. Having said that business uncertainty always remains.