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. Availability of cash flows also determines the level of dividend payout. In times of growth, these industrial companies could provide opportune income through dividend. Here are my top dividend stocks in the industrials industry that could be valuable additions to your current holdings.
China Yuchai International Limited (NYSE:CYD)
CYD has a decent dividend yield of 3.52% and the company currently pays out 32.97% of its profits as dividends , with an expected payout of 39.91% in three years. CYD is among the markets top 25% of dividend payers, which is certainly enticing for interested investors.
Aircastle Limited (NYSE:AYR)
AYR has a enticing dividend yield of 4.74% and the company currently pays out 51.03% of its profits as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that AYR is in the top quartile of market payers.
GATX Corporation (NYSE:GATX)
GATX has a nice dividend yield of 2.74% and their payout ratio stands at 34.13% , with analysts expecting this ratio to be 41.33% in the next three years. GATX has increased its dividend from $0.96 to $1.68 over the past 10 years. It should comfort existing and potential future shareholders to know that GATX hasn’t missed a payment during this time. When we compare GATX’s PE ratio with its industry, the company appears favorable. The US Trade Distributors industry’s average ratio of 17.4 is above that of GATX’s (12.6).
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.