Tuesday, November 15, 2022

3 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 2.7%

The Industrials Sector consists of companies that manufacture products or provide business services. The products are often inputs or raw materials into another manufacturing process, such as steel producer.

Many of these companies are often referred to as members of the “smokestack industry” and are classified as cyclical stocks. A cyclical stock is one that rises and falls in step with the economy.

Timing is important when buying an industrial stock. If you buy when business is booming you will likely pay too much, which means a very low yield. Many stocks in this sector are currently overpriced. 

The Industrials Sector is one of the largest sectors in my dividend growth database. As noted above, this is not a sector I am in a position to buy often, but when the time is right, I plan on taking full advantage of the opportunity.

This week week, I screened my dividend growth stocks database for Industrials with a yield above 3.5% and have increased their dividends for at least 10 consecutive years. The results are presented below:

United Parcel Service, Inc. (UPS) is the world's largest express delivery company, UPS has established itself as a facilitator of e-commerce. The company has paid a cash dividend to shareholders every year since 2000 and has increased its dividend payments for 13 consecutive years. Yield: 3.6%

Stanley Black & Decker Inc. (SWK) is a diversified global provider of hand tools, power tools and related accessories and systems resulted from the March 2010 merger of Stanley Works and Black & Decker. The company has paid a cash dividend to shareholders every year since 1877 and has increased its dividend payments for 55 consecutive years. Yield: 4.2%

3M Co. (MMM) provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives and other chemical additives. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 64 consecutive years. Yield: 4.8%

As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 150+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: No position in the aforementioned securities.

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Tags: MMM, UPS, SWK,