Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as Insteel Industries and Snap-on 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. Below is my list of huge dividend-paying stocks in the industrials industry that continues to add value to my portfolio holdings.
Insteel Industries, Inc. (NASDAQ:IIIN)
IIIN has a nice dividend yield of 3.96% and is paying out 8.72% of profits as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from US$0.12 to US$1.12. Analysts are expecting an impressive triple digit earnings growth over the next three years. More detail on Insteel Industries here.
Snap-on Incorporated (NYSE:SNA)
SNA has a sizeable dividend yield of 2.21% and is paying out 30.36% of profits as dividends . The company’s dividends per share have risen from US$1.20 to US$3.28 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Continue research on Snap-on here.
Icahn Enterprises L.P. (NASDAQ:IEP)
IEP has an alluring dividend yield of 12.30% and has a payout ratio of 40.55% . While there’s been some level of instability in the yield, IEP has overall increased DPS over a 10 year period from US$0.97 to US$7.00. When we compare Icahn Enterprises’s PE ratio with its industry, the company appears favorable. The US Industrials industry’s average ratio of 11.8 is above that of Icahn Enterprises’s (3.8). More on Icahn Enterprises here.
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.