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. 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 made a list of other value-adding dividend-paying stocks in the transport and automobile industry for you to consider for your investment portfolio.
Banco Products (India) Limited (BSE:500039)
500039 has a nice dividend yield of 3.49% and the company currently pays out 59.50% of its profits 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. Banco Products (India) seems reasonably priced when looking at its PE ratio (17.1). The industry average suggests that IN Auto Components companies are more expensive on average 29.9. Interested in Banco Products (India)? Find out more here.
Gateway Distriparks Limited (BSE:532622)
532622 has a nice dividend yield of 3.90% and is distributing 102.35% of earnings as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from ₹3.00 to ₹7.00. Gateway Distriparks is a strong prospect for its future growth, with analysts expecting the company’s earnings to increase by 72.04% over the next three years. More detail on Gateway Distriparks here.
Gujarat Pipavav Port Limited (BSE:533248)
533248 has a wholesome dividend yield of 2.46% and their current payout ratio is 65.09% , with an expected payout of 69.66% in three years. The company’s 2.46% dividend is both above the low risk savings rate and among the markets top payers. More detail on Gujarat Pipavav Port 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.