The professional services sector tends to be highly cyclical, impacting companies operating in areas ranging from airlines to auto parts and equipment to infrastructure. Hence, considering economic volatility crucial when thinking about these companies’ profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these companies could provide a strong boost to your portfolio income. 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.

Kwoon Chung Bus Holdings Limited (SEHK:306)

306 has an alluring dividend yield of 5.53% and distributes 41.13% of its earnings to shareholders as dividends . 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. Kwoon Chung Bus Holdings is also reasonably priced, with a PE ratio of 7.4 that compares favorably with the HK Transportation average of 13.7. Continue research on Kwoon Chung Bus Holdings here.

Chu Kong Shipping Enterprises (Group) Company Limited (SEHK:560)

560 has a great dividend yield of 4.41% and has a payout ratio of 30.14% . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from HK$0.06 to HK$0.09 over the past 10 years. The last 12 months have seen an earnings growth of 19.79% for Chu Kong Shipping Enterprises (Group). More detail on Chu Kong Shipping Enterprises (Group) here.

Launch Tech Company Limited (SEHK:2488)

2488 has an alluring dividend yield of 5.20% and is distributing 78.23% of earnings 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 CN¥0.11 to CN¥0.47 over the past 10 years. 2488 ticks the box for a financially sound company when we look at its debt to equity ratio, currently at a healthy 38.16%. Dig deeper into Launch Tech 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.