Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as Tex Holdings and MS INTERNATIONAL suffer from 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. Here are my top dividend stocks in the industrials industry that could be valuable additions to your current holdings.
Tex Holdings plc (LSE:TXH)
TXH has an alluring dividend yield of 7.76% and is distributing 73.91% of earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from UK£0.075 to UK£0.085. Tex Holdings is also reasonably priced, with a PE ratio of 9.5 that compares favorably with the GB Machinery average of 20.5. More on Tex Holdings here.
MS INTERNATIONAL plc (AIM:MSI)
MSI has a enticing dividend yield of 4.32% and pays 60.73% of it’s earnings as dividends . MSI’s dividends have increased in the last 10 years, with DPS increasing from UK£0.037 to UK£0.08. The company has been a dependable payer too, not missing a payment in this 10 year period. The company outperformed the gb aerospace & defense industry’s earnings growth of 24.64%, reporting an EPS growth of 29.28% over the past 12 months. Dig deeper into MS INTERNATIONAL here.
Castings P.L.C. (LSE:CGS)
CGS has a good-sized dividend yield of 3.33% and the company has a payout ratio of 50.24% . CGS’s last dividend payment was UK£0.14, up from it’s payment 10 years ago of UK£0.097. The company has been a reliable payer too, not missing a payment during this time. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the GB Machinery industry. Castings’s PE ratio is 15.1 while its industry average is 20.5. Interested in Castings? 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.