The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. Hence, considering economic volatility is of paramount importance when thinking about an industrials company’s profitability. Cash flow availability also drives dividend payout, so in times of growth, these companies could provide hefty dividend income for your portfolio. I’ve identify the following industrials stocks paying high income, which may increase the value of your portfolio.
TAT Technologies, Ltd. (NASDAQ:TATT)
TATT has a good-sized dividend yield of 3.30% and their current payout ratio is 70.37% . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. TAT Technologies’s earnings per share growth of 194.89% over the past 12 months outpaced the us aerospace and defense industry’s average growth rate of 13.47%.
National Presto Industries, Inc. (NYSE:NPK)
NPK has a large dividend yield of 5.50% and distributes 14.87% of its earnings to shareholders as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $3.8 to $5.5. National Presto Industries’s earnings per share growth of 20.28% outpaced the us aerospace and defense industry’s 13.47% average growth rate over the last year.
American Railcar Industries, Inc. (NASDAQ:ARII)
ARII has a enticing dividend yield of 4.00% and is paying out 58.11% of profits as dividends , with analysts expecting this ratio in three years to be 68.26%. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0.12 to $1.6. The company has a lower PE ratio than the US Machinery industry, which interested investors would be happy to see. The company’s PE is currently 14.5 while the industry is sitting higher at 23.9.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.