April Cyclical Dividend Stock Picks
The performance of consumer cyclical companies is heavily dependent on the economic cycle. Businesses that fall into this category range from consumer electronics to gambling, which tend to be considered as luxury items rather than necessities. In periods of growth, consumers benefit from higher discretionary income which drives these companies’ profitability. Higher profits by and large lead to higher dividend payout so economic growth is an opportune time to benefit from these consumer stocks. Today I will share with you my list of high-dividend consumer cyclical stocks you should consider for your portfolio.
The Cato Corporation (NYSE:CATO)
CATO has an alluring dividend yield of 8.71% with a large payout ratio . CATO’s dividends have increased in the last 10 years, with DPS increasing from US$0.66 to US$1.32. The company has been a dependable payer too, not missing a payment in this 10 year period. With a debt to equity ratio of zero, I’m optimistic on the company’s health if a downturn is to occur in the future. Dig deeper into Cato here.
American Eagle Outfitters, Inc. (NYSE:AEO)
AEO has a good dividend yield of 2.70% and their payout ratio stands at 43.58% . AEO’s dividends have increased in the last 10 years, with DPS increasing from US$0.40 to US$0.55. The company has been a reliable payer too, not missing a payment during this time. Continue research on American Eagle Outfitters here.
Williams-Sonoma, Inc. (NYSE:WSM)
WSM has a solid dividend yield of 3.44% and distributes 51.44% of its earnings to shareholders as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$0.48 to US$1.72. They have been dependable too, not missing a single payment in this time. Williams-Sonoma’s future earnings growth looks strong, with analysts expecting 56.64% EPS growth in the next three years. More detail on Williams-Sonoma 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.
