The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. 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. As a long term investor, I favour these industrials stocks with great dividend payments that continues to add value to my portfolio.
TAT Technologies Ltd. (NASDAQ:TATT)
TATT has a solid dividend yield of 3.42% and is currently distributing 70.37% of profits to shareholders . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from US$0.20 to US$0.34 over the past 10 years. TAT Technologies’s earnings per share growth of 194.89% over the past 12 months outpaced the us aerospace & defense industry’s average growth rate of 5.31%. Dig deeper into TAT Technologies here.
China Yuchai International Limited (NYSE:CYD)
CYD has a good-sized dividend yield of 3.81% and pays 26.71% of it’s earnings as dividends , and analysts are expecting the payout ratio in three years to hit 39.62%. While there’s been some level of instability in the yield, CYD has overall increased DPS over a 10 year period from CN¥0.13 to CN¥0.90. The company outperformed the us machinery industry’s earnings growth of 19.58%, reporting an EPS growth of 84.96% over the past 12 months. More detail on China Yuchai International here.
Aircastle Limited (NYSE:AYR)
AYR has a great dividend yield of 5.65% and pays out 56.47% of its profit as dividends . The company’s yield puts it among good company – the top 25% of the market. Dig deeper into Aircastle here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers. Or create your own list by filtering companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.
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.