Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as Tex Holdings and MS INTERNATIONAL 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. If you’re a buy-and-hold investor, these healthy dividend stocks in the industrials industry can generously contribute to your monthly portfolio income.
Tex Holdings plc (LSE:TXH)
TXH has a large dividend yield of 7.49% and their payout ratio stands at 63.89% . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Tex Holdings seems reasonably priced when looking at its PE ratio (8.5). The industry average suggests that GB Machinery companies are more expensive on average 23.6. Dig deeper into Tex Holdings here.
MS INTERNATIONAL plc (AIM:MSI)
MSI has a large dividend yield of 4.28% and their payout ratio stands at 60.73% . The company outperformed the gb aerospace & defense industry’s earnings growth of 24.64%, reporting an EPS growth of 29.28% over the past 12 months. Dig deeper into MS INTERNATIONAL here.
Castings P.L.C. (LSE:CGS)
CGS has a good dividend yield of 3.16% and is paying out 50.24% of profits as dividends . More on Castings 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.