Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. 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. Here are my top dividend stocks in the industrials industry that could be valuable additions to your current holdings.
National Presto Industries, Inc. (NYSE:NPK)
NPK has a large dividend yield of 6.26% and the company has a payout ratio of 16.14% . Despite there being some hiccups, dividends per share have increased during the past 10 years. National Presto Industries seems reasonably priced when looking at its PE ratio (15.5). The industry average suggests that US Aerospace & Defense companies are more expensive on average 21.8. Dig deeper into National Presto Industries here.
American Railcar Industries, Inc. (NASDAQ:ARII)
ARII has a sumptuous dividend yield of 4.41% and their payout ratio stands at 21.12% . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. American Railcar Industries’s earnings per share growth of 139.25% over the past 12 months outpaced the us machinery industry’s average growth rate of 24.83%. Continue research on American Railcar Industries here.
Hubbell Incorporated (NYSE:HUBB)
HUBB has a solid dividend yield of 2.96% and has a payout ratio of 67.60% . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from US$1.32 to US$3.08 over the past 10 years. Over the next year, analysts are estimating a double digit EPS growth of 48.86%. Interested in Hubbell? Find out more 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.