1/22/2013

20 Most Recommended Industrial Dividend Stocks | Top Stock Buy List

Industrial goods stocks with highest buy rating originally published at "long-term-investments.blogspot.com". Today I like to finalize my January posts of the highest recommended stocks from the eight most important sectors of the economy. Industrial goods are the latest sector to discover.

The industrial sector is a small one with 359 related companies and only 172 of them are dividend stocks. The average dividend yield amounts to 2.01 and the P/E ratio has a value of 24.59 in average.


I personally have only a small share of industrial stocks in my private portfolios. The main reason is that the sector has many cyclic companies and stocks from the sector are often very capital intensive. They need huge amounts of money to keep the business running and growing. As a result, dividend payments are low.


But there are also some great growth stories. I own shares of United Technologies, Lockheed Martin and Raytheon. My biggest position is General Electric on which I have 104% unrealized gains. Not enough, I have around 10 -20 additional stocks on my watch list.


Below is a small compilation of the 20 highest recommended dividend stocks with a market capitalization over USD 2 billion. What do you think about the list of the most recommended industrial goods dividend stocks? Do you own some of them? Please let me know and leave a comment in the box below.


Here are my favorite stocks:
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Honeywell (NYSE:HON) has a market capitalization of $53.12 billion. The company employs 132,000 people, generates revenue of $36.529 billion and has a net income of $1.865 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.547 billion. The EBITDA margin is 9.71 percent (the operating margin is 6.25 percent and the net profit margin 5.11 percent).

Financial Analysis: The total debt represents 18.98 percent of the company’s assets and the total debt in relation to the equity amounts to 69.91 percent. Due to the financial situation, a return on equity of 17.31 percent was realized. Twelve trailing months earnings per share reached a value of $2.98. Last fiscal year, the company paid $1.37 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.73, the P/S ratio is 1.45 and the P/B ratio is finally 4.86. The dividend yield amounts to 2.42 percent and the beta ratio has a value of 1.37.

”Long-Term
Long-Term Stock History Chart Of Honeywell (HON)
”Long-Term
Long-Term Dividends History of Honeywell (HON)
”Long-Term
Long-Term Dividend Yield History of Honeywell (HON)

Danaher Corporation (NYSE:DHR) has a market capitalization of $41.91 billion. The company employs 59,000 people, generates revenue of $16.090 billion and has a net income of $1.935 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.152 billion. The EBITDA margin is 19.59 percent (the operating margin is 16.06 percent and the net profit margin 12.03 percent).

Financial Analysis: The total debt represents 17.71 percent of the company’s assets and the total debt in relation to the equity amounts to 31.38 percent. Due to the financial situation, a return on equity of 12.64 percent was realized. Twelve trailing months earnings per share reached a value of $3.14. Last fiscal year, the company paid $0.09 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.29, the P/S ratio is 2.60 and the P/B ratio is finally 2.46. The dividend yield amounts to 0.17 percent and the beta ratio has a value of 0.94.

”Long-Term
Long-Term Stock History Chart Of Danaher Corporation (DHR)
”Long-Term
Long-Term Dividends History of Danaher Corporation (DHR)
”Long-Term
Long-Term Dividend Yield History of Danaher Corporation (DHR)

Precision Castparts (NYSE:PCP) has a market capitalization of $26.98 billion. The company employs 21,480 people, generates revenue of $7.214 billion and has a net income of $1.217 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.985 billion. The EBITDA margin is 27.52 percent (the operating margin is 25.12 percent and the net profit margin 16.88 percent).

Financial Analysis: The total debt represents 1.97 percent of the company’s assets and the total debt in relation to the equity amounts to 2.49 percent. Due to the financial situation, a return on equity of 15.85 percent was realized. Twelve trailing months earnings per share reached a value of $9.09. Last fiscal year, the company paid $0.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.40, the P/S ratio is 3.74 and the P/B ratio is finally 3.22. The dividend yield amounts to 0.06 percent and the beta ratio has a value of 1.22.

”Long-Term
Long-Term Stock History Chart Of Precision Castparts (PCP)
”Long-Term
Long-Term Dividends History of Precision Castparts (PCP)
”Long-Term
Long-Term Dividend Yield History of Precision Castparts (PCP)


Take a closer look at the full list of the most recommended industrial dividend stocks. The average P/E ratio amounts to 19.02 and forward P/E ratio is 14.84. The dividend yield has a value of 1.43 percent. Price to book ratio is 2.81 and price to sales ratio 1.41. The operating margin amounts to 10.66 percent and the beta ratio is 1.37. Stocks from the list have an average debt to equity ratio of 0.47.

Here is the full table with some fundamentals (TTM):

20 Industrial Goods Dividend Stocks With Buy Rating (Click to enlarge)

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Related stock ticker symbols:
PHG, ETN, BA, HON, ATI, CR, SMS, CAE, LECO, CRS, KUB, FLR, NJ, FLS, EME, AME, HEI, TGI, DHR, PCP 

Selected Articles:


* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.



1 comment:

  1. Anonymous1/22/2013

    The industrial sector has historically been a good source of dividends, including special dividends. Last year, due to healthy free cash flows, this sector registered one of the highest numbers of companies issuing special dividends, according to S&P Capital IQ. The sector pays a competitive yield and many of the sector's leading names are offering appealing combinations of dividend yield and growth. Now that the market outlook for industrials is improving, as U.S. industrial production picks up pace and global economies rebound, some investors are likely to look for growth opportunities in the sector. I would consider BA. I know you don't like this company, Tom.

    ReplyDelete

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