Professional service names generally suffer from deep cyclicality which can affect companies operating in areas ranging from consulting to security services. Therefore, where we are in the economic cycle determines these companies’ level of profitability. Cash flow availability also drives dividend payout, so in times of growth, these service companies could provide hefty dividend income for your portfolio. Below is my list of huge dividend-paying stocks in the services industry that continues to add value to my portfolio holdings.
Gujarat Hotels Limited (BSE:507960)
507960 has a sizeable dividend yield of 2.71% and is paying out 39.33% of profits as dividends . 507960 has increased its dividend from ₹2.50 to ₹3.50 over the past 10 years. It should comfort existing and potential future shareholders to know that 507960 hasn’t missed a payment during this time. Comparing Gujarat Hotels’s PE ratio against the IN Hospitality industry draws favorable results, with the company’s PE of 14.5 being below that of its industry (43.3). Dig deeper into Gujarat Hotels here.
Savera Industries Limited (BSE:512634)
512634 has a good dividend yield of 2.99% and is currently distributing 41.53% of profits to shareholders . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from ₹1.00 to ₹2.40. The company recorded earnings growth of 80.46% in the past year, comparing favorably with the in hospitality industry average of 0.44%. Continue research on Savera Industries here.
International Travel House Limited (BSE:500213)
500213 has a sizeable dividend yield of 2.07% and is paying out 48.85% of profits as dividends . 500213’s last dividend payment was ₹4.25, up from it’s payment 10 years ago of ₹3.00. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. International Travel House is also reasonably priced, with a PE ratio of 23.7 that compares favorably with the IN Hospitality average of 43.3. Interested in International Travel House? Find out more here.
For more solid dividend paying companies to add to your portfolio, explore this 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.