Companies in the commercial and professional services sector operate in areas ranging from commercial printing to consulting services. Most of these names such as Collection House and Retail Food Group suffer from high cyclicality. Hence, considering economic volatility is crucial when thinking about a professional services company’s profitability. Availability of cash flows also determines the level of dividend payout. In times of growth, these service companies could provide opportune income through dividend. If you’re a long term investor, these high-dividend services stocks can boost your monthly portfolio income.
Collection House Limited (ASX:CLH)
CLH has an alluring dividend yield of 5.95% and has a payout ratio of 60.72% . CLH has increased its dividend from $0.02 to $0.078 over the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period.
Retail Food Group Limited (ASX:RFG)
RFG has a sumptuous dividend yield of 11.95% and is distributing 83.32% of earnings as dividends . RFG has increased its dividend from $0.0625 to $0.3 over the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Retail Food Group’s performance over the last 12 months beat the global hospitality industry, with the company reporting 16.93% EPS growth compared to its industry’s figure of 8.70%.
McMillan Shakespeare Limited (ASX:MMS)
MMS has a good dividend yield of 3.79% and has a payout ratio of 80.87% . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0.125 to $0.66. Over the next year, analysts are estimating a double digit EPS growth of 37.24%.
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.