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. Availability of cash flows also determines the level of dividend payout. In times of growth, these industrial companies could provide opportune income through dividend. I’ve identify the following industrials stocks paying high income, which may increase the value of your portfolio.
National Presto Industries, Inc. (NYSE:NPK)
NPK has an alluring dividend yield of 5.11% and is paying out 15.77% of profits as dividends . Despite there being some hiccups, dividends per share have increased during the past 10 years. Comparing National Presto Industries’s PE ratio against the US Aerospace & Defense industry draws favorable results, with the company’s PE of 18.5 being below that of its industry (22.9). Dig deeper into National Presto Industries here.
Hubbell Incorporated (NYSE:HUBB)
HUBB has a good dividend yield of 2.75% and is currently distributing 67.60% of profits to shareholders . Despite some volatility in the yield, DPS has risen in the last 10 years from US$1.40 to US$3.08. Hubbell also looks promising for it’s growth over the next year, with analysts expecting a double digit earnings per share increase of 50.01%. Dig deeper into Hubbell here.
Icahn Enterprises L.P. (NASDAQ:IEP)
IEP has a great dividend yield of 9.96% and pays 41.25% of it’s earnings as dividends . Despite there being some hiccups, dividends per share have increased during the past 10 years. Icahn Enterprises seems reasonably priced when looking at its PE ratio (4.6). The industry average suggests that US Industrials companies are more expensive on average 12.4. Continue research 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.