The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. Hence, considering economic volatility is of paramount importance when thinking about an industrials company’s 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 long term investor, these high-dividend industrials stocks can boost your monthly portfolio income.
National Presto Industries, Inc. (NYSE:NPK)
NPK has a juicy dividend yield of 5.27% and is distributing 14.87% of earnings as dividends . 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. National Presto Industries’s earnings per share growth of 20.28% outpaced the us aerospace & defense industry’s 12.42% average growth rate over the last year. More on National Presto Industries here.
American Railcar Industries, Inc. (NASDAQ:ARII)
ARII has a enticing dividend yield of 4.02% and the company has a payout ratio of 58.11% . 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. American Railcar Industries seems reasonably priced when looking at its PE ratio (14.5). The industry average suggests that US Machinery companies are more expensive on average 26.7. Continue research on American Railcar Industries here.
PACCAR Inc (NASDAQ:PCAR)
PCAR has a good dividend yield of 2.84% and the company currently pays out 25.06% of its profits as dividends , with analysts expecting this ratio in three years to be 40.25%. While there’s been some level of instability in the yield, PCAR has overall increased DPS over a 10 year period from $1.72 to $2.2. More on PACCAR 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.