MSM - 3 High-Yield Stocks at Rock-Bottom Prices
Here are three industrial stocks that offer a dividend yield above 4% after slumping over the last year. As such, they should be looked at seriously by income-seeking investors with a view to locking in some attractive dividends. Let's look at industrial giants Siemens (OTC: SIEGY), and ABB (NYSE: ABB), and industrial supply company MSC Industrial (NYSE: MSM) to see if their yields justify buying their stock.
Before getting into the details of these businesses, let's check the sustainability and growth potential of their dividends. The best way to do this is usually to look at how much of free cash flow (FCF) is being used to pay dividends. For reference, FCF is what's left from operating cash flow when capital expenditures are taken out. In essence, it's what companies actually use to return capital to investors, make acquisitions, and pay down debt.
All three stocks offer a good income stream from dividends. Image source: Getty Images.