The performance of consumer cyclical companies is heavily dependent on the economic cycle. Companies such as Ludlow Jute & Specialities and VTM offer goods and services that are luxuries, instead of absolute necessities, such as entertainment and gambling. In periods of growth, consumers benefit from higher discretionary income which drives these companies’ profitability. This tends to lead to higher cash flows and hefty dividend income for an investors’ portfolio. Here are my top dividend stocks in the consumer cyclical industry that could be valuable additions to your current holdings.

Ludlow Jute & Specialities Limited (BSE:526179)

526179 has a nice dividend yield of 2.69% and is distributing 36.40% of earnings as dividends . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Ludlow Jute & Specialities’s earnings per share growth of 30.32% over the past 12 months outpaced the in luxury industry’s average growth rate of 5.78%. More detail on Ludlow Jute & Specialities here.

VTM Limited (BSE:532893)

532893 has a nice dividend yield of 2.58% and pays 45.68% of it’s earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from ₹0.27 to ₹0.75. 532893 appears to be in good financial shape too, with a debt to equity ratio of 4.76%. Dig deeper into VTM here.

Damodar Industries Limited (BSE:521220)

521220 has a decent dividend yield of 2.10% and is currently distributing 27.68% of profits to shareholders . Despite some volatility in the yield, DPS has risen in the last 10 years from ₹1.20 to ₹2.80. More on Damodar Industries 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.