Transport and automobile names generally suffer from deep cyclicality which can affect companies operating in areas ranging from airfreight and logistics to infrastructure. Hence, considering economic volatility crucial when thinking about these companies’ profitability. Cash flow availability also drives dividend payout, so in times of growth, these transport companies could provide hefty dividend income for your portfolio. If you’re a long term investor, these high-dividend transport and automobile stocks can boost your monthly portfolio income.
Air Partner plc (LSE:AIR)
AIR has a decent dividend yield of 3.75% and is distributing 79.97% of earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from £0.04 to £0.052.
Ocean Wilsons Holdings Limited (LSE:OCN)
OCN has a great dividend yield of 5.93% and the company currently pays out 33.45% of its profits as dividends , with the expected payout in three years hitting 56.19%. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0.24 to $0.63. Ocean Wilsons Holdings’s earnings per share growth of 185.53% outpaced the global infrastructure industry’s 20.70% average growth rate over the last year.
Stagecoach Group plc (LSE:SGC)
SGC has an appealing dividend yield of 7.17% and is currently distributing 184.95% of profits to shareholders . In the last 10 years, shareholders would have been happy to see the company increase its dividend from £0.0513 to £0.119. The company has been a reliable payer too, not missing a payment during this time. 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.