Although the industrial sector is generally characterized by a wide variety of markets with companies spanning the quality spectrum, most names suffer relatively high cyclicality. 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 industrial companies could provide opportune income through dividend. Today I will share with you my list of high-dividend industrials stocks you should consider for your portfolio.

IPE Group Limited (SEHK:929)

929 has a good dividend yield of 3.47% and their current payout ratio is 38.99% . 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. IPE Group’s earnings growth over the past 12 months has exceeded the hk machinery industry, with the company reporting an EPS growth of 37.43% while the industry totaled 22.75%. Dig deeper into IPE Group here.

Hanison Construction Holdings Limited (SEHK:896)

896 has a large dividend yield of 4.90% and is currently distributing 13.07% of profits to shareholders . 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. Comparing Hanison Construction Holdings’s PE ratio against the HK Construction industry draws favorable results, with the company’s PE of 2.7 being below that of its industry (10.4). Interested in Hanison Construction Holdings? Find out more here.

Lung Kee (Bermuda) Holdings Limited (SEHK:255)

255 has a great dividend yield of 11.89% and their payout ratio stands at 56.70% . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from HK$0.30 to HK$0.44. The company recorded earnings growth of 96.44% in the past year, comparing favorably with the hk machinery industry average of 22.75%. More detail on Lung Kee (Bermuda) Holdings here.

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers. Or create your own list by filtering SEHK companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.

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.