Transport and automobile names generally suffer from deep cyclicality which can affect companies operating in areas ranging from airfreight and logistics to infrastructure. Hence, considering economic volatility crucial when thinking about these companies’ profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these companies could provide a strong boost to your portfolio income. I’ve identify the following transport and automobile stocks paying high income, which may increase the value of your portfolio.
Norfolk Southern Corporation (NYSE:NSC)
NSC has a nice dividend yield of 2.02% and their current payout ratio is 13.01% , with analysts expecting the payout ratio in three years to be 32.84%. In the case of NSC, they have increased their dividend per share from US$1.16 to US$2.88 so in the past 10 years. They have been dependable too, not missing a single payment in this time. Norfolk Southern’s earnings growth over the past 12 months has exceeded the us transportation industry, with the company reporting an EPS growth of 224.71% while the industry totaled 31.25%. More on Norfolk Southern here.
Ford Motor Company (NYSE:F)
F has a enticing dividend yield of 6.82% and the company has a payout ratio of 31.37% , with analysts expecting a 38.69% payout in three years. While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. The company outperformed the us auto industry’s earnings growth of 31.42%, reporting an EPS growth of 65.41% over the past 12 months. Dig deeper into Ford Motor here.
Union Pacific Corporation (NYSE:UNP)
UNP has a solid dividend yield of 2.16% and is paying out 18.48% of profits as dividends , with analysts expecting this ratio to be 35.08% in the next three years. Over the past 10 years, UNP has increased its dividends from US$0.44 to US$2.92. The company has been a dependable payer too, not missing a payment in this 10 year period. The company recorded earnings growth of 153.06% in the past year, comparing favorably with the us transportation industry average of 31.25%. More on Union Pacific 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.