Income: Engineering rising dividends

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Many engineering businesses have found trading tough, but exposure to the commercial vehicles sector has provided upside for some. One company has kept up its capital investment so that it continues to improve its efficiency, as well as paying increasing dividends. A new £17m production line should be in action by 2026 – most of the cash outflow will be in 2024-25.

The forecast yield is 4.9% and in recent years there have also been special dividends when the cash pile has become higher than required by the business. The ordinary dividend is covered 1.9 times by forecast earnings. There cou...

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