Although the industrial sector is generally characterized by a wide variety of markets with companies spanning the quality spectrum, most names suffer relatively high cyclicality. 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. I’ve identify the following industrials stocks paying high income, which may increase the value of your portfolio.
Chicago Rivet & Machine Co. (AMEX:CVR)
CVR has a sizeable dividend yield of 3.80% and the company currently pays out 43.87% of its profits as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $0.72 to $1.15. When we compare Chicago Rivet & Machine’s PE ratio with its industry, the company appears favorable. The US Machinery industry’s average ratio of 23.9 is above that of Chicago Rivet & Machine’s (16.6).
Burnham Holdings, Inc. (OTCPK:BURC.A)
BURC.A has a sumptuous dividend yield of 5.97% and is paying out 98.90% of profits as dividends . BURC.A’s dividends have seen an increase over the past 10 years, with payments increasing from $0.68 to $0.88 in that time. They have been dependable too, not missing a single payment in this time. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the US Building industry. Burnham Holdings’s PE ratio is 16.6 while its industry average is 24.8.
Insteel Industries, Inc. (NASDAQ:IIIN)
IIIN has a sumptuous dividend yield of 4.04% and is distributing 10.12% of earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $0.12 to $1.12. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years.
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.