How does a dividend-paying stock that has doubled in the last two years and operates in a promising industry sound to you? We are talking about travel and leisure here. You might think that those sectors have been severely crippled by the pandemic. While that observation is not completely false, there are some pockets within the leisure product space that have actually benefited because of the pandemic. Think recreational vehicles. Yes, people will still want to travel after being holed up for months due to lockdowns. However, with virus variants posing a threat, people will want to travel in a relatively safer environment. They might not want to go to hotels or resorts as much. But, they may be more open to traveling in a self-contained manner with their families. Driving an RV to an outdoor location with fresh air and few people around sounds like a good idea. It means that we need to start looking for a top recreational vehicles stock.
Capital Appreciation Plus Dividends
Most investors could view Thor Industries as a growth story where the post-pandemic behavior will drive the demand for recreational vehicles and safe traveling. However, Thor Industries is a very consistent dividend payer as well. It has grown dividends per share by 4X over the past decade. The payout ratio throughout the past decade has also been quite conservative. It had remained below an incredible 20% for the most part except for 2019 and 2020, when the payout ratio went up to 63% and 44%, respectively. Investors can, therefore, feel assured that the sustainability of future dividend payouts is also taken care of. Thor Industries offers an opportunity to play on the future demand growth in recreational vehicles and the prospect of regular dividend payments. It is among the best RV stocks out there.
Thor Industries was trading at a dividend yield of 1.55% on 19th July 2021. The 52-week high at the time was around $155, while the 52-week low was $78. The price on 19th July was $105, some way off from the 52-week high and low points.