Cyclical companies can also be steady dividend payers if boards grow the dividend in a sustainable way instead of in line with the movement in earnings, which can change rapidly because of operation gearing. This company currently has a dividend that is covered 2.3 times by forecast earnings. The shares are yielding nearly 5.7%.
In 20 years, this company has paid 76.2p/share in dividends, even before the latest payment. That is more than the current share price. The dividend payment was much higher back in 2008 and payments did stop in 2013 and 2014 when there was significant debt, but the...
