3 stocks to buy from the IT space that offer good dividend yields of up to 6.33%

Markets have been exceedingly volatile, as investors grapple increasing interest rates across the globe. It's highly possible that we might see volatility continue as central banks continue to tighten monetary policy measures. Here are a few stocks that investors can buy from the IT space that offer good dividend yields.

Tech Mahindra

The stock of Tech Mahindra has seen a sharp fall over the last few months, in line with tech stocks across the globe. The shares at these levels are a good buy for their dividend yields. For the financial year ending March 2022 Tech Mahindra declared a healthy dividend of 900% amounting to Rs 45 per share. At the current share price of Rs 1030, it results in a dividend yield of 4.38%. For investors, it is also important to understand whether the company would continue to maintain good dividends going ahead. We believe that Tech Mahindra would not reduce dividends, though the IT sector in the next few quarters could face some headwinds.

Oracle Financial Services

This company is a subsidiary of Oracle, US. It is largely catering to products and services for the banking and insurance sector. The company has a solid track record of declaring dividends for many years now. However, the sharp drop in the share price of the company from levels of Rs 5000 to Rs 2900, has made the stock attractive to buy. For the year ending March 2022 Oracle Financial Services Software declared a robust dividend of 3800 per cent amounting to Rs 190 per share. At the current share price of Rs 2996, it results in a dividend yield of 6.33%. The fundamentals of the company are also sound, given that the price to earnings multiples on the stock is around 15 times, trailing EPS.

HCL Tech

This is another stock to buy for its excellent dividend yields. The company tends to declare dividends quarter on quarter. For the year ending March 2022, HCL Technologies announced a dividend of 2100 per cent, amounting to Rs 42 per share. At the current share price of Rs 945 this results in a dividend yield of 4.45%. The only worries that investors face right now is the growing fears of a recession in the US, which could hit IT spends from companies there. This has led to sharp fall in IT stocks, which in turn has improved their dividend yields. We believe that should the US navigate recessionary type conditions, we could see IT stocks back in the limelight.