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. 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. As a long term investor, I favour these industrials stocks with great dividend payments that continues to add value to my portfolio.

Nam Lee Pressed Metal Industries Limited (SGX:G0I)

G0I has an appealing dividend yield of 5.13% and is currently distributing 21.82% of profits to shareholders . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from S$0.012 to S$0.02. More on Nam Lee Pressed Metal Industries here.

Design Studio Group Ltd. (SGX:D11)

D11 has a large dividend yield of 17.33% and distributes 45.11% of its earnings to shareholders as dividends . Despite there being some hiccups, dividends per share have increased during the past 10 years. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the Global Building industry. Design Studio Group’s PE ratio is 6.8 while its industry average is 23.8. Dig deeper into Design Studio Group here.

Spindex Industries Limited (SGX:564)

564 has a good-sized dividend yield of 3.32% and the company currently pays out 32.40% of its profits as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from S$0.01 to S$0.03. Spindex Industries seems reasonably priced when looking at its PE ratio (9.8). The industry average suggests that SG Machinery companies are more expensive on average 11.8. Dig deeper into Spindex Industries 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.