Top Services Dividend Yielding Stocks To Profit From
Companies in the commercial and professional services sector operate in areas ranging from commercial printing to consulting services. Most of these names such as McGrath Rentcorp and Quad/Graphics suffer from high cyclicality. 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 companies could provide a strong boost to your portfolio income. I’ve made a list of other value-adding dividend-paying stocks in the services industry for you to consider for your investment portfolio.
McGrath Rentcorp (NASDAQ:MGRC)
MGRC has a solid dividend yield of 2.21% and is distributing 54.01% of earnings as dividends . MGRC’s last dividend payment was $1.04, up from it’s payment 10 years ago of $0.72. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend.
Quad/Graphics, Inc. (NYSE:QUAD)
QUAD has an alluring dividend yield of 5.23% and their payout ratio stands at 66.11% . QUAD’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend payers.
HNI Corporation (NYSE:HNI)
HNI has a good-sized dividend yield of 3.02% and pays 73.86% of it’s earnings as dividends . Over the past 10 years, HNI has increased its dividends from $0.78 to $1.14. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. HNI is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years.
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.
