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. 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.
National Presto Industries, Inc. (NYSE:NPK)
NPK has a great dividend yield of 6.40% and is paying out 16.14% of profits as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from US$4.25 to US$6.00. When we compare National Presto Industries’s PE ratio with its industry, the company appears favorable. The US Aerospace & Defense industry’s average ratio of 21.8 is above that of National Presto Industries’s (15.1). Dig deeper into National Presto Industries here.
American Railcar Industries, Inc. (NASDAQ:ARII)
ARII has an alluring dividend yield of 4.28% and the company has a payout ratio of 21.48% . Despite some volatility in the yield, DPS has risen in the last 10 years from US$0.12 to US$1.60. The company recorded earnings growth of 95.67% in the past year, comparing favorably with the us machinery industry average of 21.79%. Interested in American Railcar Industries? Find out more here.
Pentair plc (NYSE:PNR)
PNR has a solid dividend yield of 2.05% and is paying out 52.24% of profits as dividends . Over the past 10 years, PNR has increased its dividends from US$0.68 to US$1.40. They have been dependable too, not missing a single payment in this time. Pentair is a strong prospect for its future growth, with analysts expecting the company’s earnings to increase by 65.76% over the next three years. More on Pentair 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.