Transport and automobile names generally suffer from deep cyclicality which can affect companies operating in areas ranging from airfreight and logistics to infrastructure. Therefore, where we are in the economic cycle determines these companies’ 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. Below is my list of huge dividend-paying stocks in the transport and automobile industry that continues to add value to my portfolio holdings.
Rotala PLC (AIM:ROL)
ROL has an alluring dividend yield of 4.65% and the company currently pays out 52.86% of its profits as dividends . Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 4.65% yield places it amidst the market’s top dividend payers. Over the next 12 months, analysts are predicting double digit earnings growth of 48.01%. More detail on Rotala here.
Air Partner plc (LSE:AIR)
AIR has an alluring dividend yield of 5.00% and has a payout ratio of 79.97% . Despite there being some hiccups, dividends per share have increased during the past 10 years. Air Partner’s earnings per share growth of 48.78% outpaced the gb airlines industry’s 2.02% average growth rate over the last year. Interested in Air Partner? Find out more here.
Ocean Wilsons Holdings Limited (LSE:OCN)
OCN has a great dividend yield of 4.35% and the company currently pays out 31.61% of its profits as dividends , and analysts are expecting a 42.32% payout ratio in the next three years. While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from US$0.20 to US$0.49. The company recorded earnings growth of 73.80% in the past year, comparing favorably with the gb infrastructure industry average of 41.04%. More detail on Ocean Wilsons Holdings 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.