Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. 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. Below is my list of huge dividend-paying stocks in the industrials industry that continues to add value to my portfolio holdings.
Eaton Corporation plc (NYSE:ETN)
ETN has a decent dividend yield of 3.07% and the company currently pays out 37.18% of its profits as dividends , and analysts are expecting the payout ratio in three years to hit 48.72%. In the case of ETN, they have increased their dividend per share from $0.86 to $2.4 so in 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. Eaton’s performance over the last 12 months beat the us electrical equipment industry, with the company reporting 46.15% EPS growth compared to its industry’s figure of 4.57%.
Cummins Inc. (NYSE:CMI)
CMI has a nice dividend yield of 2.50% and is currently distributing 42.07% of profits to shareholders . The company’s dividends per share have risen from $0.5 to $4.32 since it started paying dividends 10 years ago. It should comfort existing and potential future shareholders to know that CMI hasn’t missed a payment during this time.
Fastenal Company (NASDAQ:FAST)
FAST has a sizeable dividend yield of 2.67% and the company currently pays out 67.21% of its profits as dividends . FAST’s dividends have increased since they started paying 10 years ago, with DPS increasing from $0.23 to $1.28. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period.
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.