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Hedge Your Bet With These Industrial Dividend Payers

Luis Baughman

Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as Tai Sin Electric and Sunningdale Tech suffer from relatively high cyclicality. Therefore, where we are in the economic cycle determines these companies’ 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. If you’re a buy-and-hold investor, these healthy dividend stocks in the industrials industry can generously contribute to your monthly portfolio income.

Tai Sin Electric Limited (SGX:500)

500 has an appealing dividend yield of 5.95% and is paying out 71.33% of profits 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. Tai Sin Electric seems reasonably priced when looking at its PE ratio (12). The industry average suggests that Global Electrical companies are more expensive on average 18.5. More on Tai Sin Electric here.

SGX:500 Historical Dividend Yield Apr 28th 18

Sunningdale Tech Ltd (SGX:BHQ)

BHQ has a sumptuous dividend yield of 5.51% and their current payout ratio is 41.99% , with analysts expecting this ratio in three years to be 43.24%. While there’s been some level of instability in the yield, BHQ has overall increased DPS over a 10 year period from S$0.06 to S$0.07. Continue research on Sunningdale Tech here.

SGX:BHQ Historical Dividend Yield Apr 28th 18

KSH Holdings Limited (SGX:ER0)

ER0 has a large dividend yield of 4.72% and the company has a payout ratio of 36.46% . While there’s been some level of instability in the yield, ER0 has overall increased DPS over a 10 year period from S$0.0083 to S$0.03. The company also looks promising for it’s future growth, with analysts expecting an impressive doubling of earnings per share over the next year. More on KSH Holdings here.

SGX:ER0 Historical Dividend Yield Apr 28th 18

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.