Although the industrial sector is generally characterized by a wide variety of markets with companies spanning the quality spectrum, most names suffer relatively high cyclicality. Therefore, where we are in the economic cycle determines these companies’ level of profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these industrial names could provide a strong boost to your portfolio income. I’ve made a list of other value-adding dividend-paying stocks in the industrials industry for you to consider for your investment portfolio.
Reece Limited (ASX:REH)
REH has a decent dividend yield of 2.23% and distributes 47.03% of its earnings to shareholders as dividends , with an expected payout of 49.86% in three years. The company’s DPS have increased from $0.52 to $1 over the last 10 years. The company has been a reliable payer too, not missing a payment during this time.
GWA Group Limited (ASX:GWA)
GWA has a juicy dividend yield of 5.89% and is paying out 81.14% of profits as dividends . Besides the potential capital gains, GWA’s yield alone is better than the low risk savings rate. Plus, a 5.89% yield places it amidst the market’s top dividend payers. Comparing GWA Group’s PE ratio against the Global Building Products industry draws favorable results, with the company’s PE of 13.8 being below that of its industry (21.9).
Silver Chef Limited (ASX:SIV)
SIV has a substantial dividend yield of 5.13% and is distributing 68.70% of earnings as dividends . SIV’s last dividend payment was $0.38, up from it’s payment 10 years ago of $0.1. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. The company’s future earnings growth looks promising, with analysts expecting earnings growth over the next three years to reach 61.38%.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.