The performance of consumer cyclical companies is heavily dependent on the economic cycle. Businesses that fall into this category range from consumer electronics to gambling, which tend to be considered as luxury items rather than necessities. In periods of growth, consumers benefit from higher discretionary income which drives these companies’ profitability. Higher profits by and large lead to higher dividend payout so economic growth is an opportune time to benefit from these consumer stocks. Today I will share with you my list of high-dividend consumer cyclical stocks you should consider for your portfolio.
Nakoda Limited (BSE:521030)
521030 has a large dividend yield of 96.77% and is paying out 12.97% of profits as dividends . 521030 has increased its dividend from ₹0.13 to ₹0.30 over the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Nakoda’s performance over the last 12 months beat the in luxury industry, with the company reporting 20.86% EPS growth compared to its industry’s figure of 6.16%. Dig deeper into Nakoda here.
Arex Industries Limited (BSE:526851)
526851 has a good-sized dividend yield of 2.14% and their current payout ratio is 23.74% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from ₹0.90 to ₹2.00. The company recorded earnings growth of 12.01% in the past year, comparing favorably with the in luxury industry average of 6.16%. Interested in Arex Industries? Find out more here.
Zenith Fibres Limited (BSE:514266)
514266 has a good-sized dividend yield of 2.01% and has a payout ratio of 26.47% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from ₹1.50 to ₹2.00. The company has a lower PE ratio than the IN Luxury industry, which interested investors would be happy to see. The company’s PE is currently 13.2 while the industry is sitting higher at 18.2. Dig deeper into Zenith Fibres 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.