Industrial names generally suffer from deep cyclicality which can affect companies operating in areas ranging from machinery to aerospace to construction. 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 industrial names could provide a strong boost to your portfolio income. As a long term investor, I favour these industrials stocks with great dividend payments that continues to add value to my portfolio.
Mueller Water Products, Inc. (NYSE:MWA)
MWA has a good-sized dividend yield of 2.02% and pays 24.50% of it’s earnings as dividends . The company’s dividends per share have risen from US$0.07 to US$0.20 over the last 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Continue research on Mueller Water Products here.
The Timken Company (NYSE:TKR)
TKR has a good dividend yield of 2.48% and their current payout ratio is 40.89% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from US$0.68 to US$1.08. If analysts are correct, Timken has some strong future growth on the horizon with an expected increase in EPS of 75.74% over the next three years. More detail on Timken here.
MSC Industrial Direct Co., Inc. (NYSE:MSM)
MSM has a solid dividend yield of 2.64% and the company currently pays out 36.91% of its profits as dividends , and analysts are expecting a 40.23% payout ratio in the next three years. MSM’s dividends have seen an increase over the past 10 years, with payments increasing from US$0.72 to US$2.32 in that time. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. Dig deeper into MSC Industrial Direct here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.