Companies in the industrials sector operate in areas ranging from aerospace and defence to building products and construction. Most industrial names such as Kier Group and James Halstead suffer from relatively high cyclicality. As such, the position a company has relative to the economic cycle drives its level of profitability. Availability of cash flows also determines the level of dividend payout. In times of growth, these industrial companies could provide opportune income through dividend. I’ve made a list of other value-adding dividend-paying stocks in the industrials industry for you to consider for your investment portfolio.
Kier Group plc (LSE:KIE)
KIE has a substantial dividend yield of 6.19% with a large payout ratio . Despite some volatility in the yield, DPS has risen in the last 10 years from £0.5 to £0.675. 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.
James Halstead plc (AIM:JHD)
JHD has a good dividend yield of 2.77% and is currently distributing 73.93% of profits to shareholders , with analysts expecting this ratio to be 77.39% in the next three years. JHD’s DPS have risen to £0.13 from £0.0413 over a 10 year period. They have been consistent too, not missing a payment during this 10 year period. The company has averaged a positive annual earnings growth rate of over the past five years.
Morgan Advanced Materials plc (LSE:MGAM)
MGAM has a good dividend yield of 3.38% and their payout ratio stands at 31.30% , with the expected payout in three years being 48.19%. The company’s DPS have increased from £0.0525 to £0.11 over the last 10 years. They have been consistent too, not missing a payment during this 10 year period. The company recorded earnings growth of 228.53% in the past year, comparing favorably with the gb machinery industry average of 19.79%.
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.