The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. Therefore, where we are in the economic cycle determines these companies’ level of profitability. Availability of cash flows also determines the level of dividend payout. In times of growth, these industrial companies could provide opportune income through dividend. I’ve made a list of other value-adding dividend-paying stocks in the industrials industry for you to consider for your investment portfolio.
Silver Chef Limited (ASX:SIV)
SIV has a enticing dividend yield of 5.70% and the company currently pays out 68.70% of its profits as dividends . SIV’s dividends have increased in the last 10 years, with DPS increasing from AU$0.12 to AU$0.38. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. The company also looks promising for it’s future growth, with analysts expecting an earnings per share increase of 60.17% over the next three years. Interested in Silver Chef? Find out more here.
GWA Group Limited (ASX:GWA)
GWA has a juicy dividend yield of 5.02% and is distributing 83.36% of earnings as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that GWA is in the top quartile of market payers. Continue research on GWA Group here.
Reece Limited (ASX:REH)
REH has a decent dividend yield of 2.06% and their current payout ratio is 45.02% , with analysts expecting a 50.33% payout in three years. The company’s DPS have increased from AU$0.11 to AU$0.20 over the last 10 years. It should comfort existing and potential future shareholders to know that REH hasn’t missed a payment during this time. Dig deeper into Reece here.
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.