IT stocks are beginning to offer bank FD-like dividend yields. But is that a trap for investors?

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• Economic TimesLean R·1h ago

  IT stocks are beginning to offer bank FD-like dividend yields. But is that a trap for investors?

  Indian IT stocks now offer dividend yields comparable to bank fixed deposits. These yields have risen because stock prices have significantly declined from their peaks. Companies possess substantial liquidity and are actively using buybacks and dividends for support. However, sector headwinds from AI and geopolitics create uncertainty for future growth. Investors face a polarized market with potential risks and rewards.

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