Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. Hence, considering economic volatility is of paramount importance when thinking about an industrials company’s profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these industrial names could provide a strong boost to your portfolio income. Here are my top dividend stocks in the industrials industry that could be valuable additions to your current holdings.
Chicago Rivet & Machine Co. (AMEX:CVR)
CVR has a good-sized dividend yield of 3.66% and has a payout ratio of 43.87% . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from $0.72 to $1.15 over 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 US Machinery industry. Chicago Rivet & Machine’s PE ratio is 17.2 while its industry average is 23.9. Dig deeper into Chicago Rivet & Machine here.
Burnham Holdings, Inc. (OTCPK:BURC.A)
BURC.A has a sumptuous dividend yield of 5.48% and the company currently pays out 98.90% of its profits as dividends . BURC.A’s DPS have risen to $0.88 from $0.68 over a 10 year period. The company has been a dependable payer too, not missing a payment in this 10 year period. The company has a lower PE ratio than the Global Building industry, which interested investors would be happy to see. The company’s PE is currently 18 while the industry is sitting higher at 25.1. Dig deeper into Burnham Holdings here.
Insteel Industries, Inc. (NASDAQ:IIIN)
IIIN has a wholesome dividend yield of 3.80% and the company has a payout ratio of 10.12% . Despite some volatility in the yield, DPS has risen in the last 10 years from $0.12 to $1.12. Analyst estimates for Insteel Industries’s future earnings are certainly promising, predicting a triple digit earnings growth over the next three years. Continue research on Insteel 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.