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The profitability of industrial producers is directly correlated with that of other sectors. These companies play an essential role in the development of new technologies as well as services. Consequently, the performance of large-cap industrials is a solid indicator of the strength of the U.S. economy. Here is a list of the top 12 U.S.-based industrial titans with a minimum market cap of $10 billion which offer a minimum yield of 2%. Data is derived from Finviz:

Boeing Co. (BA): As the world’s most-known aerospace company, Boeing produces commercial airplanes, military aircraft, network & space systems, global services & support, and Boeing Capital Corporation. Boeing’s market capitalization is $55.60 billion and its P/E ratio is 16.95, while forward P/E ratio is 14.37. The company had an average EPS growth of 6.87% over the last five years. Boeing’s net profit margin in 2010 was 5.15%, and last year’s dividend yield was 2.23%. Recent dividend history of Boeing is as follows:

Feb 9, 2011

$0.42

Nov 3, 2010

$0.42

Aug 4, 2010

$0.42

May 5, 2010

$0.42

Emerson Electric Co. (EMR): Emerson Electric Co. is a diversified global technology company. It has a market capitalization of $44.60 billion, and its P/E ratio is 22.07, while the forward P/E is 15.36. Emerson Electric had an average EPS growth of 8.92% during the last five years. Net profit margin in 2010 was 9.62%, while Emerson Electric offered a dividend yield of 2.33%. Recent dividend dates of EMR are as follows:

Feb 9, 2011

$0.345

Nov 9, 2010

$0.345

Aug 11, 2010

$0.345

May 12, 2010

$0.345

Eaton Corporation (ETN): As a diversified power management company, Eaton Corporation operates five segments: Electrical Americas and electrical rest of world, hydraulics, aerospace, truck, and automotive. The market cap of Eaton Corporation is $18.34 billion. Its P/E ratio is 19.81 and forward P/E ratio is 12.06. The company had an annual EPS growth of 1.48% over the last five years. Eaton’s net profit margin in 2010 was 6.83%, last year’s dividend yield was 2.52%. Recent dividend payments per share are as follows:

Feb 3, 2011

$0.34

Nov 4, 2010

$0.29

Aug 5, 2010

$0.29

May 6, 2010

$0.25

General Dynamics Corp. (GD): General Dynamics Corporation engages in production of aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology. The company has a market cap of $26.98 billion. The company enjoyed EPS growth of 13.78% over the past five years. GD is an undervalued company with a low P/E ratio of 10.58, with a forward ratio of 9.49. With a net profit margin of 8.09%, General Dynamics offered an increasing dividend yield of 2.60% last year. Recent dividend history is as follows:

Apr 6, 2011

$0.47

Jan 12, 2011

$0.42

Oct 6, 2010

$0.42

Jun 30, 2010

$0.42

Honeywell International Inc. (HON): Honeywell International Inc. operates in aerospace, automation, control solutions, specialty materials and transportation systems businesses. The company’s market capitalization is $47.67 billion. While its P/E ratio is 23.26, its forward P/E ratio is 13.83. Company had an EPS growth rate of 7.13% during the past 5 years. HON’s net profit margin in 2010 was 6.10%. Last year’s dividend yield was 2.19%, and recent dividend history per share are as follows:

Feb 16, 2011

$0.333

Nov 17, 2010

$0.303

Aug 18, 2010

$0.303

May 18, 2010

$0.303

Illinois Tool Works Inc. (ITW): Illinois Tool Works Inc. is a multinational company which operates in 57 countries. ITW is engaged in diversified range of industrial products, and equipment. The market capitalization of ITW is $26.96 billion. P/E ratio is 17.84, while the forward P/E ratio is 12.21. Profit margin of the company is 9.62%, and annual EPS growth rate was 3.20%, over the last five years. The company’s current dividend yield is 2.52%. Recent dividend history is as follows:

Mar 29, 2011

$0.34

Dec 29, 2010

$0.34

Sep 28, 2010

$0.34

Jun 28, 2010

$0.31

Lockheed Martin Corporation (LMT): As a global security company, Lockheed operates in aeronautics, electronic systems, information systems & global services, and space systems. Lockheed Martin’s market cap is $27.19 billion. Lockheed is also undervalued with a P/E ratio of 10.8 and even lower forward P/E ratio of 9.14. The company enjoyed an annualized EPS growth rate of 11.89% in the last five years. Net profit margin is 5.77%. LMT is a high yield dividend company with a current yield of 3.86%. Recent dividend dates of LMT are as follows:

Feb 25, 2011

$0.75

Nov 29, 2010

$0.75

Aug 30, 2010

$0.63

May 27, 2010

$0.63

3M Co. (MMM): As a gigantic conglomerate 3M Company operates in six operating business segments: industrial and transportation, health care, display and graphics, consumer and office, as well as safety, security and protection services, and electro-communications. The market capitalization of 3M is $66.85 billion. While trailing P/E ratio is 16.68, forward P/E is 13.51. The company’s annual profit margin is 15.61%. 3M shareholders enjoyed an annualized EPS growth rate of 6.94% during the last five years. Current yield is 2.34%. 3M’s recent dividend history is as follows:

Feb 16, 2011

$0.55

Nov 17, 2010

$0.525

Aug 18, 2010

$0.525

May 19, 2010

$0.525

Republic Services, Inc. (RSG): Phoenix-based RSG provides services in the domestic non-hazardous solid waste industry. RSG’S market capitalization is $11.28 billion. The company is a little pricey with a P/E ratio of 22.64. However, analysts estimate a large growth in earnings this year, driving the forward P/E ratio to 13.73. RSG had an EPS growth rate of 2.43% over the last five years. Dividend yield is 2.70%. Recent dividend history is as follows:

Mar 30, 2011

$0.20

Dec 30, 2010

$0.20

Sep 29, 2010

$0.20

Jun 29, 2010

$0.19

Raytheon Co. (RTN): Raytheon is a technology company which specializes in defense, homeland security, and other government markets. The market cap of Raytheon is $17.35 billion, and P/E ratio is 10.16, while forward P/E ratio is 8.78. Given the increasing need for advanced homeland security systems, Raytheon enjoyed an annual EPS growth of 19.29% over the last five years. Company’s profit margin is 7.32%, and dividend yield is 3.53%. Recent dividend payments per share are as follows:

Apr 4, 2011

$0.43

Jan 3, 2011

$0.375

Oct 1, 2010

$0.375

Jul 1, 2010

$0.375

Stanley Black & Decker, Inc. (SWK): Construction, security, and industrial operations are the major business segments of SWK. The company has a market cap of $12.84 billion. While the trailing P/E ratio is 109.70, forward P/E ratio is 12.71. Dividend yield is 2.14%. Recent dividend history of the company is as follows:

Feb 28, 2011

$0.41

Dec 1, 2010

$0.34

Sep 1, 2010

$0.34

May 28, 2010

$0.33

Waste Management, Inc. (WM): WM engages in integrated waste management services in North America. The market cap of WM is $18.24 billion. It has P/E ratio of 19.48, and a forward P/E ratio of 14.88. The company’s annual profit margin is 8.01% and its dividend yield is 3.54%. Recent dividend payments of WM are as follows:

Mar 9, 2011

$0.34

Nov 29, 2010

$0.315

Sep 2, 2010

$0.315

May 27, 2010

$0.315

Note that 10 of the companies listed above significantly increased their quarterly dividends. That is a healthy signal for our economy, indicating that we are finally getting out of the recession.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top 12 Industrial Titans Paying Substantial Dividends