Companies in the commercial and professional services sector operate in areas ranging from commercial printing to consulting services. Most of these names such as Keg Royalties Income Fund and Calian Group suffer from high cyclicality. Therefore, where we are in the economic cycle determines these companies’ level of profitability. Availability of cash flows also determines the level of dividend payout. In times of growth, these service companies could provide opportune income through dividend. Today I will share with you my list of high-dividend services stocks you should consider for your portfolio.
The Keg Royalties Income Fund (TSX:KEG.UN)
KEG.UN has an alluring dividend yield of 6.57% and their payout ratio stands at 62.06% . KEG.UN has been paying a dividend for the last 10 years, but shareholders have not seen an increase in dividends per share during this time. Keg Royalties Income Fund’s earnings per share growth of 197.83% outpaced the ca hospitality industry’s 13.68% average growth rate over the last year. Dig deeper into Keg Royalties Income Fund here.
Calian Group Ltd. (TSX:CGY)
CGY has a nice dividend yield of 3.40% and their payout ratio stands at 54.52% . Over the past 10 years, CGY has increased its dividends from CA$0.60 to CA$1.12. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Dig deeper into Calian Group here.
K-Bro Linen Inc. (TSX:KBL)
KBL has a wholesome dividend yield of 3.15% with a large payout ratio . The company’s dividends per share have risen from CA$1.10 to CA$1.20 over the last 10 years. They have been consistent too, not missing a payment during this 10 year period. K-Bro Linen could be a good investment for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next 12 months More detail on K-Bro Linen here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.