In this article, we discuss 5 Indian tech stocks that pay dividends. If you want to read our detailed analysis of India’s tech industry and dividend investment strategy, go directly to read 10 Indian Tech Stocks that Pay Dividends.
5. Infosys Limited (NYSE:INFY)
Dividend Yield as of August 15: 2.01%
Infosys Limited (NYSE:INFY) is an Indian multinational information technology company that provides outsourcing services to its consumers.
In Q1 2023, Infosys Limited (NYSE:INFY) reported revenue of $4.44 billion, showing a 17.5% year-over-year growth and also beating estimates by $180 million. The company ended the quarter with over $1.7 billion available in cash and cash equivalents, with $15 billion in total assets. For FY23, the company increased its revenue guidance to 14%-16%. Infosys Limited (NYSE:INFY) pays a quarterly dividend of $0.177 per share, and has a dividend yield of 2.01%, as of August 15.
In July, Wedbush set a $25 price target on the stock on account of its mixed Q1 2023 results. However, the firm maintained its Outperform rating on the stock.
At the end of Q1 2022, 25 hedge funds in Insider Monkey’s database owned stakes in Infosys Limited (NYSE:INFY), down from 27 in the previous quarter. These stakes are collectively valued at over $2.2 billion.
4. Cyient Limited (NSE:CYIENT.NS)
Dividend Yield as of August 15: 2.90%
Cyient Limited (NSE:CYIENT.NS) is a Hyderabad-based multinational technology company that focuses on data analytics and network and operations. In the past five years, the stock delivered a 62.3% return to shareholders, as of the close of August 14.
In Q1 2023, Cyient Limited (NSE:CYIENT.NS) reported a revenue of INR 12.5 million, up 18.1% from the same period last year. The company’s Group and Services order intake grew by 18% year-over-year. Moreover, it also showed a 15.8% year-over-year growth in its Constant Currency Revenue.
Cyient Limited (NSE:CYIENT.NS) has a very strong dividend policy and distributes a maximum of 40% of its profit after tax as dividends to shareholders. The company offers a quarterly dividend of INR 2.90 per share, with a dividend yield of 2.90%, as recorded on August 15.
3. Sasken Technologies Limited (NSE:SASKEN.NS)
Dividend Yield as of August 15: 2.99%
Sasken Technologies Limited (NSE:SASKEN.NS) is an Indian multinational tech company that provides services in product engineering and digital transformation.
Sasken Technologies Limited (NSE:SASKEN.NS) generated $12.9 million in revenues in Q1 2023, down from $14.3 million in the preceding quarter. The company’s total assets at the end of the quarter amount to INR 7.7 million, consistent with the previous quarter. In the past five years, Sasken Technologies Limited (NSE:SASKEN.NS) delivered an 83.4% return to shareholders, as of August 15.
Sasken Technologies Limited (NSE:SASKEN.NS) offers a quarterly dividend of INR 6.25 per share. The stock’s dividend yield, as of August 15, came in at 2.99%.
2. Sonata Software Limited (NSE:SONATSOFTW.NS)
Dividend Yield as of August 15: 3.05%
Sonata Software Limited (NSE:SONATSOFTW.NS) is a Bengaluru-based global IT service company that specializes in intelligence and analytics, cloud, social media, and enterprise services. The company is one the most profitable IT names in the country, as it grew its revenue at a CAGR of 23% in the last three years.
In Q1 2023, Sonata Software Limited (NSE:SONATSOFTW.NS) reported revenue of $56.8%, which presented a 27.7% year-over-year growth. The company’s Data and Analytics unit represented 2.7% of the gross revenue, while its Managed Cloud Services accounted for 5.6%. During the quarter, the company used 42% of its cash in shareholders’ payout.
Sonata Software Limited (NSE:SONATSOFTW.NS) pays a quarterly dividend of INR 5.24 per share, with a dividend yield of 3.05%, as of August 15.
1. Oracle Financial Services Software Limited (NSE:OFSS.NS)
Dividend Yield as of August 15: 5.63%
Oracle Financial Services Software Limited (NSE:OFSS.NS) is a Mumbai-based subsidiary of Oracle Corporation. The company specializes in insurance technology, retail banking, and corporate banking.
In fiscal Q4 2022, Oracle Financial Services Software Limited (NSE:OFSS.NS) reported revenue of $11.8 billion, up 5% from the same period. The company also declared a 3% year-over-year growth in its Cloud Services revenues at $7.6 billion. In FY22, its operating cash flow came in at $9.5 billion and had $21.3 billion available in cash and cash equivalents at the end of the quarter. In 2022, Oracle Financial Services Software Limited (NSE:OFSS.NS) paid $3.4 billion in dividends to shareholders, up from $3 billion paid in 2021.
Oracle Financial Services Software Limited (NSE:OFSS.NS) pays a quarterly dividend of $0.32 per share. The stock’s dividend yield stood at 5.63% on August 15.
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