Infosys (INFY) is expected to produce strong growth, while offering a dividend that is slightly below that of the S&P 500 Index.

Analysts estimate for INFY’s long-term EPS growth rate is 19%. The stock’s current dividend yield is 1.2%, compared to 1.7% for the S&P 500.

This Zacks Rank #2 stock trades at 26.9x 2010 EPS estimates and 24.8x 2011 EPS estimates.

Company Description

Infosys designs and delivers IT-enabled business solutions, providing its clients with strategic differentiation, operational superiority, and increasing competitiveness. Customers are assured of a transparent business partner, business-IT alignment with flexibility, world-class processes, speed of execution and the power to stretch IT budgets by leveraging the Global Delivery Model that Infosys pioneered.

Fiscal Third-Quarter Results

Revenues increased 5.2% to $1.23 billion. Infosys also reported earnings per share of $0.59. This was up 5.4% from the year-ago quarter and 7 cents better than the Zacks Consensus Estimate.

For the fourth quarter ended March 31, the company expects revenue of $1.24 billion to $1.25 billion and earnings per share of $0.56.

Bullish Analysts

The company last reported in January, so there hasn’t been much new information from the company for a couple of months. That said, in the last 90 days, EPS estimates for 2010 are up 14 cents and 24 cents for 2011. The Zacks Consensus Estimate for 2010 is $2.29, and the Zacks Consensus Estimate for 2011 is $2.48.

What’s more, Infosys has beaten the Zacks Consensus Estimate for three consecutive quarters by an average of 13.4%.

Industry Leader

The company’s trailing-twelve month return on equity (ROE) was 29.8%, tripling the industry average of 9.9%. Its superior ROE is driven by its net profit margin of 27.8%, which soars past the industry’s 6.0% margin. While the industry carries little debt; it’s debt-to-equity ratio is just 0.2%. But, that still exceeds INFY’s debt-free balance sheet.

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