Best-In-Class Services Dividend Stocks

Professional service names generally suffer from deep cyclicality which can affect companies operating in areas ranging from consulting to security services. Hence, considering economic volatility is crucial when thinking about a professional services company’s 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.

Acme United Corporation (AMEX:ACU)

ACU has a good dividend yield of 2.22% and distributes 35.61% of its earnings to shareholders as dividends . Over the past 10 years, ACU has increased its dividends from US$0.16 to US$0.44. They have been consistent too, not missing a payment during this 10 year period. Analysts are enthusiastic about the company’s future growth, estimating a 36.66% earnings per share increase over the next 12 months. More on Acme United here.

AMEX:ACU Historical Dividend Yield Mar 28th 18
AMEX:ACU Historical Dividend Yield Mar 28th 18

Liberty Tax, Inc. (NASDAQ:TAX)

TAX has a substantial dividend yield of 6.43% and distributes 70.04% of its earnings to shareholders as dividends . The company’s 6.43% dividend is both above the low risk savings rate and among the markets top payers. Liberty Tax is also reasonably priced, with a PE ratio of 10.9 that compares favorably with the US Consumer Services average of 20.6. Dig deeper into Liberty Tax here.

NasdaqGS:TAX Historical Dividend Yield Mar 28th 18
NasdaqGS:TAX Historical Dividend Yield Mar 28th 18

Knoll, Inc. (NYSE:KNL)

KNL has a nice dividend yield of 3.07% and pays out 36.24% of its profit as dividends , with an expected payout of 44.84% in three years. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from US$0.48 to US$0.60. Dig deeper into Knoll here.

NYSE:KNL Historical Dividend Yield Mar 28th 18
NYSE:KNL Historical Dividend Yield Mar 28th 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.