The industrials sector tends to be highly cyclical, impacting companies operating in an array of areas such as building products, aerospace and defence. 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 industrial companies could provide opportune income through dividend. I’ve identify the following industrials stocks paying high income, which may increase the value of your portfolio.
Kennametal Inc. (NYSE:KMT)
KMT has a solid dividend yield of 2.04% and is paying out 41.60% of profits 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. The company has been a reliable payer too, not missing a payment during this time. Kennametal also looks promising for it’s growth over the next year, with analysts expecting a double digit earnings per share increase of 53.10%. Dig deeper into Kennametal here.
Watsco, Inc. (NYSE:WSO)
WSO has a solid dividend yield of 3.25% and has a payout ratio of 80.23% , with the expected payout in three years being 87.98%. Despite some volatility in the yield, DPS has risen in the last 10 years from US$1.80 to US$5.80. More on Watsco here.
Snap-on Incorporated (NYSE:SNA)
SNA has a good dividend yield of 2.20% and is currently distributing 30.16% of profits to shareholders . SNA has increased its dividend from US$1.20 to US$3.28 over the past 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. More on Snap-on here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.