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The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. As such, the position a company has relative to the economic cycle drives its 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. If you’re a buy-and-hold investor, these healthy dividend stocks in the industrials industry can generously contribute to your monthly portfolio income.
Mueller Water Products, Inc. (NYSE:MWA)
MWA has a nice dividend yield of 2.02% and has a payout ratio of 24.50% . The company’s DPS have increased from US$0.07 to US$0.20 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Dig deeper into Mueller Water Products here.
The Timken Company (NYSE:TKR)
TKR has a wholesome dividend yield of 2.48% and distributes 40.89% of its earnings to shareholders as dividends . Despite there being some hiccups, dividends per share have increased during the past 10 years. Over the next three years, analysts predict double digit earnings growth for Timken of 75.74%. Continue research on Timken here.
MSC Industrial Direct Co., Inc. (NYSE:MSM)
MSM has a sizeable dividend yield of 2.64% and has a payout ratio of 36.91% , with analysts expecting the payout ratio in three years to be 40.23%. MSM has increased its dividend from US$0.72 to US$2.32 over the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Continue research on MSC Industrial Direct 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.