Stocks To Buy: 2 IT Stocks That Offer Dividend Yields Of Near 7%

Markets have been trading in and around that 59,000 points level for sometime now. Analysts believe that the pressure on stocks could remain, given that interest rates are headed higher across the globe. Here are 2 IT Stocks to buy that could give decent dividend yields.

Oracle Financial Services: Buy the stock for good dividend yields

This stock has a solid dividend paying track record. In fact, last year it declared a dividend of a soid Rs 190 per share, taking the dividend yield to nealy 6.5%. In the previous year, the company declared a dividend of Rs 200 per share, which takes the dividend to nearly 7% yield. We do not see the possibility of the dividends falling, despite a slowdown possibility in the IT sector. However, the sharp fall in the rupee could help margins to sustain. The shares of the company have fallen significantly from levels of Rs 5000 to Rs 2950. This also means an immense possibility of an upside.

Oracle Financial Services: Reasonable on valuations

From the mid and small cap IT companies, this is one stock that has very reasonable valuations. The stock is available with a p/e of just 16 times trailing p/e, which is extremely reasonable for an IT company. Oracle Financial Services is largely engaged in software and services for the banking and insurance sector. The shares of the company hit a 52-week high of Rs 5144 and a 52-week low of Rs 2958 on the BSE. The downside risks to the stock are relatively low, given the sharp fall in the share price already.

Tech Mahindra: Decent dividend yields

The stock may not have a dividend yield as great as Oracle Financial Services, but then it is a largecap IT stock. The current dividend yields on the stock is 4.42%, which is not bad for a largecap IT Stock. Apart from this, one tends to get dividends every quarter and from the largecap IT space, this is the best in terms of dividend yields. The one reason the dividend yield has gone higher is because the stock has fallen from levels of Rs 1837 plus to the current levels of Rs 1019. That is a sharp knock of almost 45% on the stock. It is unlikely that we will see a very sharp fall in the stock from current levels. Buy the stock for its decent dividend yields.

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