Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. As such, the position a company has relative to the economic cycle drives its level of profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these industrial names could provide a strong boost to your portfolio income. I’ve made a list of other value-adding dividend-paying stocks in the industrials industry for you to consider for your investment portfolio.
Chicago Rivet & Machine Co. (AMEX:CVR)
CVR has a good dividend yield of 3.64% and is paying out 43.87% of profits as dividends . Chicago Rivet & Machine seems reasonably priced when looking at its PE ratio (17.3). The industry average suggests that US Machinery companies are more expensive on average 24.7. Interested in Chicago Rivet & Machine? Find out more here.
Burnham Holdings, Inc. (OTCPK:BURC.A)
BURC.A has a great dividend yield of 5.50% and their current payout ratio is 98.90% . Comparing Burnham Holdings’s PE ratio against the US Building industry draws favorable results, with the company’s PE of 18 being below that of its industry (23.6). Interested in Burnham Holdings? Find out more here.
Insteel Industries, Inc. (NASDAQ:IIIN)
IIIN has a sizeable dividend yield of 3.60% and their payout ratio stands at 8.72% . Despite there being some hiccups, dividends per share have increased during the past 10 years. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years. Interested in Insteel Industries? Find out more here.
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.