High Dividend Yielding Stocks: NIIT TECHNOLOGY

This information technology solutions company, predominantly in the BFSI (banking, financial services and insurance) and travel and transport verticals has a good record of dividend payments. Its business prospects also look bright. "The management is expecting revenue growth of 22-25 per cent, with operating margins of 17-18 per cent, which means net profit this year should grow at about 20 per cent," says Vishal Jajoo, who tracks the company at Nirmal Bang Securities. Analysts believe growth will come from remote infrastructure management services, along with higher traction in the travel and tourism verticals. Its high margin business, strong return on equity at 24 per cent and low leverage are key strengths. The stock is trading at 5.6 times its 2012-13 estimated earnings and offers 4.3 per cent dividend yield — reasonable, given the business profile and growth.