Companies in the commercial and professional services sector operate in areas ranging from commercial printing to consulting services. Most of these names such as Xenith IP Group and Qantm Intellectual Property suffer from high cyclicality. As such, the position a company has relative to the economic cycle drives its level of profitability. This impacts cash flows which in turn determines the level of dividend payout. During times of growth, these companies could provide a strong boost to your portfolio income. Here are my top dividend stocks in the services industry that could be valuable additions to your current holdings.
Xenith IP Group Limited (ASX:XIP)
XIP has a juicy dividend yield of 5.36% and pays 125.90% of it’s earnings as dividends . Besides the potential capital gains, the company’s dividend alone is above the low risk savings rate. Analysts are expecting an impressive triple digit earnings growth over the next three years. More on Xenith IP Group here.
Qantm Intellectual Property Limited (ASX:QIP)
QIP has a large dividend yield of 6.98% and their current payout ratio is 100.85% . The company’s yield puts it among good company – the top 25% of the market. If analysts are correct, Qantm Intellectual Property has some strong future growth on the horizon with an expected increase in EPS of 68.09% over the next three years. Interested in Qantm Intellectual Property? Find out more here.
Shine Corporate Limited (ASX:SHJ)
SHJ has a good-sized dividend yield of 3.28% and pays out 21.58% of its profit as dividends , with analysts expecting the payout in three years to be 40.00%. The company is currently paying above the low risk rate, which is a consolation given that they aren’t among the market’s top payers. Interested in Shine? Find out more here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.