The professional services sector tends to be highly cyclical, impacting companies operating in areas such as security, consulting and support services. Therefore, where we are in the economic cycle determines these companies’ 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. I’ve identify the following services stocks paying high income, which may increase the value of your portfolio.
Think Childcare Limited (ASX:TNK)
TNK has an appealing dividend yield of 5.32% and is distributing 71.00% of earnings as dividends . The company’s yield puts it among good company – the top 25% of the market. The company’s future earnings growth looks promising, with analysts expecting earnings growth over the next three years to reach 57.30%. Interested in Think Childcare? Find out more here.
Wellcom Group Limited (ASX:WLL)
WLL has a large dividend yield of 5.45% and their payout ratio stands at 84.54% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from AU$0.12 to AU$0.23. It should comfort existing and potential future shareholders to know that WLL hasn’t missed a payment during this time. Continue research on Wellcom Group here.
Collection House Limited (ASX:CLH)
CLH has a enticing dividend yield of 5.46% and pays 60.68% of it’s earnings as dividends . CLH’s dividends have increased in the last 10 years, with DPS increasing from AU$0.044 to AU$0.078. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. More detail on Collection House 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.