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Professional service names generally suffer from deep cyclicality which can affect companies operating in areas ranging from consulting to security services. As such, the position a company has relative to the economic cycle drives its level of profitability. Cash flow availability also drives dividend payout, so in times of growth, these service companies could provide hefty dividend income for your portfolio. If you’re a buy-and-hold investor, these healthy dividend stocks in the services industry can generously contribute to your monthly portfolio income.
Dover Motorsports, Inc. (NYSE:DVD)
DVD has a sizeable dividend yield of 3.81% and their payout ratio stands at 29.88% . While there’s been some level of instability in the yield, DVD has overall increased DPS over a 10 year period from US$0.06 to US$0.08. Dover Motorsports’s earnings per share growth of 163.89% over the past 12 months outpaced the us hospitality industry’s average growth rate of 16.90%. More on Dover Motorsports here.
Liberty Tax, Inc. (NASDAQ:TAX)
TAX has a enticing dividend yield of 6.18% and the company currently pays out 70.04% of its profits as dividends . The company’s 6.18% dividend is both above the low risk savings rate and among the markets top payers. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the US Consumer Services industry. Liberty Tax’s PE ratio is 11.3 while its industry average is 21.4. More detail on Liberty Tax here.
Quad/Graphics, Inc. (NYSE:QUAD)
QUAD has a enticing dividend yield of 4.79% and the company currently pays out 55.52% of its profits as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that QUAD is in the top quartile of market payers. Interested in Quad/Graphics? Find out more 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.