Top Transport Dividend Picks For The Day
Companies in the transportation and automobile sector operate in areas ranging from airport services to auto part components. Most of these names such as United Parcel Service and Union Pacific suffer from high cyclicality. 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 identify the following transport and automobile stocks paying high income, which may increase the value of your portfolio.
United Parcel Service, Inc. (NYSE:UPS)
UPS has a good-sized dividend yield of 2.93% and has a payout ratio of 80.05% . The company’s DPS have increased from $1.68 to $3.32 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. It also looks like United Parcel Service has some promising growth in store for the next year, with analysts expecting the company’s earnings to increase by 55.92% over the next 12 months.
Union Pacific Corporation (NYSE:UNP)
UNP has a good-sized dividend yield of 2.29% and pays 42.68% of it’s earnings as dividends . UNP’s dividends have increased in the last 10 years, with DPS increasing from $0.44 to $2.66. They have been consistent too, not missing a payment during this 10 year period.
General Motors Company (NYSE:GM)
GM has a good-sized dividend yield of 3.39% and is paying out 31.60% of profits as dividends , with the expected payout in three years being 50.67%. With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that GM is in the top quartile of market payers.
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.
