In This Article:
Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. 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 companies could provide hefty dividend income for your portfolio. Today I will share with you my list of high-dividend industrials stocks you should consider for your portfolio.
PFB Corporation (TSX:PFB)
PFB has a sizeable dividend yield of 3.90% and pays out 85.39% of its profit as dividends . PFB’s dividends have seen an increase over the past 10 years, with payments increasing from CA$0.24 to CA$0.32 in that time. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. The company also looks promising for it’s future growth, with analysts expecting an impressive doubling of earnings per share over the next year. More detail on PFB here.
Rocky Mountain Dealerships Inc. (TSX:RME)
RME has a good dividend yield of 3.70% and pays 39.00% of it’s earnings as dividends . RME has increased its dividend from CA$0.18 to CA$0.46 over the past 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Dig deeper into Rocky Mountain Dealerships here.
Russel Metals Inc. (TSX:RUS)
RUS has a great dividend yield of 5.21% and distributes 75.86% of its earnings to shareholders as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that RUS is in the top quartile of market payers. More detail on Russel Metals 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.