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Professional service names generally suffer from deep cyclicality which can affect companies operating in areas ranging from consulting to security services. Hence, considering economic volatility is crucial when thinking about a professional services company’s profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these companies could provide a strong boost to your portfolio income. Today I will share with you my list of high-dividend services stocks you should consider for your portfolio.
Gattaca plc (AIM:GATC)
GATC has an appealing dividend yield of 15.78% and a reasonably sustainable dividend payout ratio , and analysts are expecting the payout ratio in three years to hit 33.66%. In the case of GATC, they have increased their dividend per share from UK£0.14 to UK£0.23 so in the past 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Dig deeper into Gattaca here.
Harvey Nash Group plc (AIM:HVN)
HVN has a nice dividend yield of 3.99% and has a payout ratio of 43.47% . HVN’s dividends have increased in the last 10 years, with DPS increasing from UK£0.018 to UK£0.041. The company has been a dependable payer too, not missing a payment in this 10 year period. Dig deeper into Harvey Nash Group here.
Elegant Hotels Group Plc (AIM:EHG)
EHG has a juicy dividend yield of 4.82% and pays out 68.04% of its profit as dividends . The company’s yield puts it among good company – the top 25% of the market. Continue research on Elegant Hotels Group 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.