The performance of consumer cyclical companies is heavily dependent on the economic cycle. Businesses such as Morarjee Textiles and Pearl Global Industries offer products that are considered luxury items, rather than those of absolute necessity, for example gambling and day spas. In periods of growth, consumers benefit from higher discretionary income which drives these companies’ profitability. Dividend payouts are, in turn, positively impacted by this growth which means these companies could provide opportune income through dividends. I’ve identify the following consumer cyclical stocks paying high income, which may increase the value of your portfolio.
Morarjee Textiles Limited (BSE:532621)
532621 has a good-sized dividend yield of 3.08% and their payout ratio stands at 36.46% . Despite there being some hiccups, dividends per share have increased during the past 10 years. The company has a lower PE ratio than the IN Luxury industry, which interested investors would be happy to see. The company’s PE is currently 11.8 while the industry is sitting higher at 17.7. Interested in Morarjee Textiles? Find out more here.
Pearl Global Industries Limited (BSE:532808)
532808 has a good-sized dividend yield of 2.48% and is currently distributing 20.78% of profits to shareholders . While there’s been some level of instability in the yield, 532808 has overall increased DPS over a 10 year period from ₹1.50 to ₹3.00. Interested in Pearl Global Industries? Find out more here.
RSWM Limited (BSE:500350)
500350 has a sizeable dividend yield of 3.74% and has a payout ratio of 27.98% . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from ₹0 to ₹12.50. When we compare RSWM’s PE ratio with its industry, the company appears favorable. The IN Luxury industry’s average ratio of 17.7 is above that of RSWM’s (7.5). Continue research on RSWM 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.