Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as J. Smart (Contractors) and Vp suffer from relatively high cyclicality. Hence, considering economic volatility is of paramount importance when thinking about an industrials company’s profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these industrial names could provide a strong boost to your portfolio income. I’ve made a list of other value-adding dividend-paying stocks in the industrials industry for you to consider for your investment portfolio.
J. Smart & Co. (Contractors) PLC (LSE:SMJ)
SMJ has a wholesome dividend yield of 2.89% and pays out 37.75% of its profit as dividends . SMJ’s dividends have seen an increase over the past 10 years, with payments increasing from UK£0.026 to UK£0.031 in that time. They have been dependable too, not missing a single payment in this time. Comparing J. Smart (Contractors)’s PE ratio against the GB Construction industry draws favorable results, with the company’s PE of 13.1 being below that of its industry (13.2). Interested in J. Smart (Contractors)? Find out more here.
Vp plc (LSE:VP.)
VP. has a decent dividend yield of 2.58% and pays 34.07% of it’s earnings as dividends . VP.’s dividends have seen an increase over the past 10 years, with payments increasing from UK£0.088 to UK£0.22 in that time. It should comfort existing and potential future shareholders to know that VP. hasn’t missed a payment during this time. Vp’s earnings per share growth of 12.19% outpaced the gb trade distributors industry’s 5.62% average growth rate over the last year. Continue research on Vp here.
Costain Group plc (LSE:COST)
COST has a decent dividend yield of 2.85% and distributes 46.29% of its earnings to shareholders as dividends . Over the past 10 years, COST has increased its dividends from UK£0.05 to UK£0.13. Much to the delight of shareholders, the company has not missed a payment during this time. More detail on Costain Group 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.