Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. As such, the position a company has relative to the economic cycle drives its level of profitability. Cash flow availability also drives dividend payout, so in times of growth, these companies could provide hefty dividend income for your portfolio. Below is my list of huge dividend-paying stocks in the industrials industry that continues to add value to my portfolio holdings.
National Presto Industries, Inc. (NYSE:NPK)
NPK has a juicy dividend yield of 5.87% and is paying out 14.87% 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. The company outperformed the us aerospace & defense industry’s earnings growth of 5.28%, reporting an EPS growth of 20.28% over the past 12 months. Continue research on National Presto Industries here.
American Railcar Industries, Inc. (NASDAQ:ARII)
ARII has an alluring dividend yield of 4.06% and pays 58.11% of it’s 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. When we compare American Railcar Industries’s PE ratio with its industry, the company appears favorable. The US Machinery industry’s average ratio of 25 is above that of American Railcar Industries’s (14.3). More detail on American Railcar Industries here.
KBR, Inc. (NYSE:KBR)
KBR has a good dividend yield of 2.13% and has a payout ratio of 63.57% . KBR’s dividends have seen an increase over the past 10 years, with payments increasing from US$0.20 to US$0.32 in that time. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Analysts are expecting an impressive triple digit earnings growth over the next year. Continue research on KBR 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.