Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as GATX and Timken suffer from relatively high cyclicality. Therefore, where we are in the economic cycle determines these companies’ level of 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. Below is my list of huge dividend-paying stocks in the industrials industry that continues to add value to my portfolio holdings.
GATX Corporation (NYSE:GATX)
GATX has a nice dividend yield of 2.67% and the company has a payout ratio of 12.99% , with the expected payout in three years hitting 38.27%. GATX’s last dividend payment was $1.76, up from it’s payment 10 years ago of $1.08. They have been consistent too, not missing a payment during this 10 year period. GATX’s earnings per share growth of 95.26% outpaced the us trade distributors industry’s 22.88% average growth rate over the last year. More detail on GATX here.
The Timken Company (NYSE:TKR)
TKR has a nice dividend yield of 2.43% and the company has a payout ratio of 40.89% . Despite there being some hiccups, dividends per share have increased during the past 10 years. Timken’s future earnings growth looks strong, with analysts expecting 70.00% EPS growth in the next three years. Continue research on Timken here.
MSC Industrial Direct Co., Inc. (NYSE:MSM)
MSM has a wholesome dividend yield of 2.60% and is paying out 43.83% of profits as dividends . The company’s DPS have increased from $0.72 to $2.32 over the last 10 years. They have been dependable too, not missing a single payment in this time. Over the next three years, analysts predict double digit earnings growth for MSC Industrial Direct of 64.87%. Dig deeper into MSC Industrial Direct 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.