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. 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. I’ve made a list of other value-adding dividend-paying stocks in the services industry for you to consider for your investment portfolio.
Transmetro Corporation Limited (ASX:TCO)
TCO has an alluring dividend yield of 4.70% and has a payout ratio of 85.71% . TCO’s dividends have increased in the last 10 years, with DPS increasing from $0.03 to $0.05. It should comfort existing and potential future shareholders to know that TCO hasn’t missed a payment during this time. When we compare Transmetro’s PE ratio with its industry, the company appears favorable. The Global Hospitality industry’s average ratio of 24.2 is above that of Transmetro’s (18.3).
Millennium Services Group Limited (ASX:MIL)
MIL has a substantial dividend yield of 8.00% and is paying out 65.75% of profits as dividends . MIL’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. Analysts are enthusiastic about the company’s future growth, estimating a 79.45% earnings per share increase in the next three years.
Wellcom Group Limited (ASX:WLL)
WLL has an appealing dividend yield of 5.52% and their current payout ratio is 84.82% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.12 to $0.23. To the enjoyment of shareholders, the company hasn’t missed a payment during this period.
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.