3 Dividend Payers Delivering Income for Investors

Transportation equipment, auto parts, and motorcycles for your portfolio.

| More on:

People have to get around and these three companies are addressing those needs in different ways. Each is a dividend payer that can add income to your portfolio and diversify it at the same time.

1. Bombardier

Bombardier (TSX: BBD.B) manufactures business jets, commercial aircraft, high-speed trains, and public transit vehicles. As of March 31, 2014, the company had a record-level order backlog of $76.9 billion versus $69.7 billion on December 31, 2013. Q1 2014 revenues were $4.4 billion versus $4.3 billion for Q1 2013.

Bombardier is developing the new Learjet 85 business jet. In Q1, the first Learjet 85 flight test vehicle completed its maiden flight (on April 9, 2014), realizing a significant milestone for Bombardier’s aircraft development program. Moreover, its Bombardier Transportation segment received $8 billion in new orders in Q1.

Bombardier is developing the CSeries commercial aircraft. The maiden flights of the first and second CSeries flight test vehicles completed successfully on September 16, 2013 and January 3, 2014.

Bombardier’s dividend yield is 2.60% and its dividend rate is $0.10.

2. Magna International

Magna International (TSX: MG)(NYSE: MGA) operates in the auto parts wholesale industry. The company produces body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules. Additionally, it engages in complete vehicle engineering and contract manufacturing.

In 2013, Magna invested $1.4 billion in its business, including fixed assets, investments and other assets. The company’s 2013 total sales were a record $34.8 billion. This represents an increase of 13% over the prior year.  In 2013, its European segment’s adjusted earnings before interest and tax increased 127% to $375 million.

For Q1 2014, Magna had sales of $8.96 billion, an increase of 7% over Q1 2013. Net income was $393 million, an increase of $24 million versus Q1 2013.

Magna’s dividend yield is 1.41% and its dividend rate is $1.52.

3. Harley-Davidson

Harley-Davidson (NYSE: HOG) manufactures cruiser and touring motorcycles. The company’s two segments are the Motorcycles & Related Products and Financial Services segments. Financial Services engages in the business of financing and servicing wholesale inventory receivables and retail consumer loans. This is chiefly for the purchase of Harley-Davidson motorcycles.

The company’s business strategy is for the international dealer network to open 100 to 150 new dealerships from the end of 2009 through the end of this year. Through December 31, 2013, Harley-Davidson added 118 new international dealers.

Harley-Davidson’s Q2 2014 net income was $354.2 million, an increase of 30.3% over net income of $271.7 million in Q2 2013. The company achieved consolidated revenue of $2 billion for Q2 versus $1.8 billion in Q2 2013.

Harley-Davidson’s dividend yield is 1.75% and its dividend rate is $1.10.

These three companies have the proper initiatives in place to address 21st century transportation needs. Research the plans each has and what they could bring in terms of income to your stock portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Michael Ugulini has no position in any stocks mentioned.

More on Investing

stock analysis

2 Safe Stocks I’m Buying Hand Over Fist Right Now

Although there is still a tonne of uncertainty about the economy heading into 2023, here are two safe stocks to…

Read more »

dogecoin is a speculative investment

Man’s Best Friend: A Retail Stock That Weathers Recession

Pet care could be recession resistant, so Pet Valu (TSX:PET) should be on your radar.

Read more »

oil and natural gas
Energy Stocks

Better Buy: Suncor Energy Stock or Canadian Natural Resources

Suncor and Canadian Natural Resources are generating strong profits. Is one undervalued?

Read more »

Arrowings ascending on a chalkboard
Dividend Stocks

3 TSX Stocks With Dividends That Outpace Inflation

Investors that worry about losing buying power due to inflation could put money into these three stocks! They’re known for…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Dividend Seekers: Which of These 3 TSX Energy Stocks Is a Better Buy?

Which is a better bet among TSX energy bigwigs?

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Top Value Stocks to Buy in December 2022

Stocks such as Bank of Montreal and NFI Group are trading at attractive and cheap valuations in 2022.

Read more »

edit Person using calculator next to charts and graphs

4 Things to Know About Algonquin Stock in December 2022

Algonquin Power & Utilities (TSX:AQN) stock is down, but did you know these four key facts about it?

Read more »

oil and gas pipeline
Energy Stocks

Better Deal: Enbridge Stock or Pembina Pipeline?

Enbridge and Pembina Pipeline are two top Canadian energy infrastructure stocks. Which is a better deal for income and growth…

Read more »