Top Rated TSX Transport Dividend Stocks
Transport and automobile names generally suffer from deep cyclicality which can affect companies operating in areas ranging from airfreight and logistics to infrastructure. Hence, considering economic volatility crucial when thinking about these companies’ profitability. Availability of cash flows also determines the level of dividend payout. In times of growth, these transport companies could provide opportune income through dividend. I’ve made a list of other value-adding dividend-paying stocks in the transport and automobile industry for you to consider for your investment portfolio.
Algoma Central Corporation (TSX:ALC)
ALC has a sizeable dividend yield of 2.57% and the company currently pays out 29.74% of its profits as dividends , with analysts expecting this ratio in three years to be 36.66%. ALC’s last dividend payment was CA$0.40, up from it’s payment 10 years ago of CA$0.18. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. Algoma Central is also reasonably priced, with a PE ratio of 13.6 that compares favorably with the Asia Shipping average of 16.7. More on Algoma Central here.
Chorus Aviation Inc. (TSX:CHR)
CHR has an alluring dividend yield of 6.09% and is currently distributing 41.48% of profits to shareholders , with the expected payout in three years being 48.51%. Despite CHR’s last payment of CA$0.48 being lower than their dividend per share 10 years ago of CA$1.01, the company has been reliable in its payout to shareholders, not missing a payment during this time. The company outperformed the ca airlines industry’s earnings growth of 52.44%, reporting an EPS growth of 73.33% over the past 12 months. More detail on Chorus Aviation here.
Exchange Income Corporation (TSX:EIF)
EIF has an alluring dividend yield of 6.16% and is distributing 86.99% of earnings as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from CA$1.50 to CA$2.19. It should comfort existing and potential future shareholders to know that EIF hasn’t missed a payment during this time. Dig deeper into Exchange Income 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.