Top Dividend Stocks in the Industrial Goods Sector
Industrial goods sector is well represented in the list of the best dividend stocks as we prepare to enter 2013. Many well managed companies in this sector have continued to offer great dividend yields and at the same time grown their dividend in the last 5 years. As the economic recovery takes hold and accelerates next year and beyond, these stocks present compelling opportunities to invest for capital gains as well as income.
Here we will look at 5 of the total 10 stocks we have in our list.
Cummins Inc (CMI): Cummins Inc designs and manufactures diesel and natural gas engines, exhaust systems and other products for the OEM and aftermarket. The stock yields 2% dividend that has increased by an average of 32% in the last 5 years.
Raytheon Co (RTN): Raytheon is another cheap stock at 9.87 times earnings. The company provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as a range of mission support services in the United States and internationally. The 3.56% dividend yield is very nice and so is a 14.42% dividend growth in the last 5 years.
L-3 Communications Holdings Inc (LLL):L-3 Communications is primarily an Aerospance/Defence equipment and systems manufacturer and does work for the US government as well as aircraft manufacturers. The stock can be purchased at just 8.8 times earnings multiple, yields a 2.61% dividend that has grown by about 15% on average in the last 5 years.
Rockwell Automation (ROK): Rockwell Automation produces control systems such as motor starters, signalling devises, relays, starters and more. The stock is currently valued at 15.36 times earnings and yields 2.4% in dividends. The company has grown its dividend by 10.14% over the last 5 years. The company recently won a $21.7 million US Navy contract. The $11 B market value company carries $1.25 B in cash and has $1.06B in debt
Deere & Co (DE): Deere & Co. stock is being accumulated by Berkshire Hathaway. While the stock is cheap at 11 times earning, it is also benefitting from the squeeze in the agricultural commodities worldwide that can potentially help farming equipment manufacturers such as Deere. The stock yields 2.2% and the dividend has grown by an average of 12.97% in the last 5 years.
Any of these stocks can be a tremendous addition to an income investors portfolio to take advantage of further improvement in the industrial activity as the economy gathers steam.