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Companies in the commercial and professional services sector operate in areas ranging from commercial printing to consulting services. Most of these names such as Acme United and Speedway Motorsports suffer from high cyclicality. 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. Below is my list of huge dividend-paying stocks in the services industry that continues to add value to my portfolio holdings.
Acme United Corporation (AMEX:ACU)
ACU has a solid dividend yield of 2.06% and distributes 35.63% of its earnings to shareholders as dividends . ACU’s DPS have risen to US$0.44 from US$0.16 over a 10 year period. They have been dependable too, not missing a single payment in this time. More detail on Acme United here.
Speedway Motorsports, Inc. (NYSE:TRK)
TRK has a nice dividend yield of 3.41% and the company has a payout ratio of 16.68% , with analysts expecting a 44.69% payout in the next three years. In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$0.34 to US$0.60. They have been consistent too, not missing a payment during this 10 year period. The company recorded earnings growth of 301.28% in the past year, comparing favorably with the us hospitality industry average of 16.90%. Interested in Speedway Motorsports? Find out more here.
Knoll, Inc. (NYSE:KNL)
KNL has a good-sized dividend yield of 3.07% and their current payout ratio is 36.33% , with analysts expecting this ratio in three years to be 43.57%. While there’s been some level of instability in the yield, KNL has overall increased DPS over a 10 year period from US$0.48 to US$0.60. More detail on Knoll 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.