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The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. As such, the position a company has relative to the economic cycle drives its level of profitability. Cash flow availability also drives dividend payout, so in times of growth, these companies could provide hefty dividend income for your portfolio. If you’re a long term investor, these high-dividend industrials stocks can boost your monthly portfolio income.
Legend Corporation Limited (ASX:LGD)
LGD has a large dividend yield of 5.96% and the company currently pays out 51.48% of its profits as dividends . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from AU$0 to AU$0.014 over the past 10 years. The company recorded earnings growth of 84.46% in the past year, comparing favorably with the au trade distributors industry average of 48.01%. Dig deeper into Legend here.
Silver Chef Limited (ASX:SIV)
SIV has an alluring dividend yield of 9.92% with a high payout ratio . SIV’s dividends have seen an increase over the past 10 years, with payments increasing from AU$0.12 to AU$0.35 in that time. Much to the delight of shareholders, the company has not missed a payment during this time. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years. Interested in Silver Chef? Find out more here.
Global Construction Services Limited (ASX:GCS)
GCS has an alluring dividend yield of 5.30% and the company currently pays out 58.32% of its profits as dividends , with an expected payout of 61.75% in three years. Besides the potential capital gains, GCS’s yield alone is better than the low risk savings rate. Plus, a 5.30% yield places it amidst the market’s top dividend payers. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years. More on Global Construction Services 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.