Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. Therefore, where we are in the economic cycle determines these companies’ 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. As a long term investor, I favour these industrials stocks with great dividend payments that continues to add value to my portfolio.
KBR, Inc. (NYSE:KBR)
KBR has a decent dividend yield of 2.02% and has a payout ratio of 10.47% , with analysts expecting the payout ratio in three years to be 18.56%. KBR has increased its dividend from US$0.20 to US$0.32 over the past 10 years. It should comfort existing and potential future shareholders to know that KBR hasn’t missed a payment during this time. Comparing KBR’s PE ratio against the US Construction industry draws favorable results, with the company’s PE of 5.2 being below that of its industry (16.1). Interested in KBR? Find out more here.
Triton International Limited (NYSE:TRTN)
TRTN has a enticing dividend yield of 6.07% and the company currently pays out 39.53% of its profits as dividends . Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 6.07% yield places it amidst the market’s top dividend payers. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the US Trade Distributors industry. Triton International’s PE ratio is 6.5 while its industry average is 13.1. Dig deeper into Triton International here.
Kennametal Inc. (NYSE:KMT)
KMT has a good-sized dividend yield of 2.04% and pays out 44.86% of its profit as dividends . KMT’s dividends have seen an increase over the past 10 years, with payments increasing from US$0.48 to US$0.80 in that time. They have been dependable too, not missing a single payment in this time. Analysts are enthusiastic about the company’s future growth, estimating a 97.34% earnings per share increase in the next three years. More detail on Kennametal here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.