Key takeaways: 

• Investors may find high yield opportunities across ASX companies specialising in novated leases, operating toll roads, managing infrastructure, engaging in engineering services, and supplying building products. 

As far as diversity among ASX sectors, the Industrials sector offers investors exposure to several different industry groups. In fact, the sector is equal-second for the most industry groups, courtesy of the Capital Goods industry, the Commercial & Professional Services industry, and the Transportation industry. 

Within these groups, investors will find companies operating across industries such as construction and engineering, aerospace, building products, engineering, commercial services and supplies, airlines, rail, logistics and transportation, plus much more. Amid this backdrop, there are several mid-to-large-cap ASX-listed Industrials shares that trade with high dividend yields, including but not limited to the following names. 

Please note: This list is intended to present a selection of shares from this sector that are trading with the highest 12-month trailing dividend yield, excluding special dividends and disregarding franking status. Dividend yields are based on the share price at the close of trade on July 29, 2024. Forecast data © 2024 LSEG. There are no guarantees the following shares will continue to pay dividends as they have in the past, or at all. 

McMillan Shakespeare (ASX: MMS) 

Trailing 12-Month Dividend Yield: 8.2% | Forecast Forward Yield (FY25): 7.8% | Market Cap: $1.21 billion 

McMillan Shakespeare specialises in salary packaging services, including novated leasing, disability plan management and support coordination, asset management, as well as related financial products and services. The company’s core business segments include Group Remuneration Services, Asset Management Services, and Plan and Support Services.  

Group Remuneration Services provides administrative services in respect of salary packaging, with a focus on novated leases for cars, in addition to ancillary services related to purchasing motor vehicles. Asset Management Services provides financing and management services associated with motor vehicles, commercial vehicles, and equipment. The company’s Plan and Support Services division handles plan management and support coordination services for participants in the National Disability Insurance Scheme (NDIS). 

Over the last two reporting periods, McMillan Shakespeare declared dividends of $0.76 per share and $0.66 per share, respectively. Both dividends were fully franked. At the current trading price, that places MMS on a 12-month trailing dividend yield of 8.2%. Based on a compilation of analyst forecasts, available to Selfwealth members on the trading platform, McMillan Shakespeare’s pre-exceptional earnings per share (EPS) and dividend per share could both increase notably in FY24, before moderating a year later, leading to an implied forward dividend yield for FY25 of 7.8%, including an estimated EPS of $1.49, and total annual dividend of $1.35 (© 2024 LSEG).

Atlas Arteria (ASX: ALX) 

Trailing 12-Month Dividend Yield: 7.7% | Forecast Forward Yield (FY25): 7.7% | Market Cap: $7.5 billion 

Founded in 2010 as a restructure of Macquarie Infrastructure Group (MIG), Atlas Arteria is a global owner, operator, and developer of toll roads. The company holds a portfolio of five toll roads across France, Germany, and the United States. Within France, Atlas Arteria owns a 31.14% interest in the Autoroutes Paris-Rhin-Rhone (APRR) toll road group, as well as a stake in Autoroute des deux lacs (ADELAC), which connects to APRR in southeast France to form over 2,400 kilometres of road network. 

In the United States, the toll operator owns a 66.67% interest in the Chicago Skyway, which is a 12.5 kilometre toll road in Chicago. It also holds 100% of the economic interest in the Dulles Greenway, a toll road in the Commonwealth of Virginia stretching 22 kilometres. In Germany, Atlas Arteria owns 100% of the Warnow Tunnel, which is in the northeast city of Rostock. 

Atlas Arteria’s last two dividend payments were both $0.20 per share, unfranked, which corresponds with a 12-month trailing dividend yield of 7.7%. According to LSEG, ALX’s total dividend could remain flat between 2023 and 2025, albeit its pre-exceptional EPS may rise to $0.32 per share in 2024, and $0.34 per share in 2025 (© 2024 LSEG). Based on the latter estimate, the stock’s implied forward dividend yield for FY25 is consistent with today’s yield of 7.7%. 

Dalrymple Bay Infrastructure (ASX: DBI) 

Trailing 12-Month Dividend Yield: 7.1% | Forecast Forward Yield (FY25): 7.6% | Market Cap: $1.5 billion 

Dalrymple Bay Infrastructure owns and manages a metallurgical coal export facility. The company provides port infrastructure and services for producers and consumers of Australian coal exports. More specifically, the company manages site capacity for independent customers to ship coal through its subsidiary, the Dalrymple Bay Terminal (DBT), located in the Port of Hay Point, approximately 38 kilometres south of Mackay. 

In terms of its role in the overall market for coal exports, DBT serves as a global gateway from the Bowen Basin. The site is considered a vital link in the global steelmaking supply chain. DBT’s customers include mining companies and coal producers from as many as 18 mines in the vicinity of the Bowen Basin region. 

Of the five companies profiled in this report, Dalrymple Bay Infrastructure differs in that it is the only name that pays a quarterly dividend, as opposed to biannual payments. Since 2021, the company has gradually increased its total distribution per year, with franking credits recently introduced. DBI currently trades on a 12-month trailing dividend yield of 7.1%. Analyst forecasts compiled by LSEG put Dalrymple Bay Infrastructure on track to increase its total dividend payout to $0.22 per share in 2024, and then $0.23 per share in 2025, which corresponds with an implied forward dividend yield for FY25 of 7.6% (© 2024 LSEG). 

Lycopodium (ASX: LYL) 

Trailing 12-Month Dividend Yield: 5.9% | Forecast Forward Yield (FY25): 6.1% | Market Cap: $552.4 million 

Lycopodium provides integrated engineering, construction, and asset management solutions. Within this range of services, LYL delivers complex, multidisciplinary projects, through the provision of feasibility studies and advisory services across the Resources, Rail Infrastructure, and Industrial Processes sectors.  

The company's Resources segment consists of engineering and related services provided to junior explorers and large-scale producers across the mining industry. LYL’s Rail Infrastructure division consists of asset management, engineering, and project delivery services for both private and public sector clients in Australia. Lastly, the company’s Industrial Processes division focuses on engineering and project delivery services for manufacturing and industrial process facilities across Australia and Southeast Asia. 

For the half ending June 30, 2023, Lycopodium declared a fully franked dividend of $0.45 per share. More recently, in April, the company paid a fully franked dividend of $0.37 per share for the half ending December 31, 2023. Based on these payments, LYL is trading on a 12-month trailing dividend yield of 5.9%. An aggregate of analysts’ estimates for 2025 suggests Lycopodium’s EPS may increase marginally through the period, with its dividend per share ($0.85) also following suit, leading to an implied dividend yield of 6.1% (© 2024 LSEG). 

GWA Group (ASX: GWA) 

Trailing 12-Month Dividend Yield: 5.5% | Forecast Forward Yield (FY25): 5.9% | Market Cap: $678.9 million 

Established in 1992, and then listing on the ASX just a year later, GWA Group is an Australian distributor of household consumer products. The company specialises in building fixtures and fittings for households and commercial premises. While the business once operated factories, this came to an end in 2017, with the company pivoting from being a manufacturer to an importer and distributor of said products. 

The principal activities of GWA Group include research, design, import, marketing, distribution, and even the installation of various products through an assortment of channels in Australia, New Zealand, and select international markets. GWA’s Water Solutions segment focuses on fittings and fixtures for bathrooms and kitchens, and other plumbing applications, with its brands including Caroma - also a subsidiary - Methven, Dorf, and Clark. 

GWA Group is currently trading on a 12-month trailing dividend yield of 5.5%. This is based on the company’s two most recent dividends, each being $0.07 per share, fully franked. According to the mean of analysts’ estimates on the Selfwealth platform, GWA Group’s earnings and total dividend is not expected to move much from current levels, with estimates for 2025 pencilled in at $0.18 and $0.15 per share respectively, compared with 2024 levels of $0.17 and $0.14 per share respectively (© 2024 LSEG). The implied forward dividend yield for FY25 is 5.9%