Professional service names generally suffer from deep cyclicality which can affect companies operating in areas ranging from consulting to security services. 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 service companies could provide opportune income through dividend. As a long term investor, I favour these services stocks with great dividend payments that continues to add value to my portfolio.
Speedway Motorsports, Inc. (NYSE:TRK)
TRK has a good dividend yield of 3.07% and their current payout ratio is 70.67% . In the case of TRK, they have increased their dividend per share from $0.335 to $0.6 so in the past 10 years. The company has been a reliable payer too, not missing a payment during this time.
DineEquity, Inc. (NYSE:DIN)
DIN has an appealing dividend yield of 7.63% and a reasonably sustainable dividend payout ratio , with the expected payout in three years being 88.18%. 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. Analysts are enthusiastic about the company’s future growth, estimating a 86.73% earnings per share increase over the next 12 months.
Knoll, Inc. (NYSE:KNL)
KNL has a sizeable dividend yield of 2.63% and is distributing 42.14% of earnings as dividends . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. If analysts are correct, Knoll has some strong future growth on the horizon with an expected increase in EPS of 54.75% over the next three years.
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.