9 Large Industrial Goods Stocks With High Dividends

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 |  Includes: BA, DOV, EMR, ETN, GD, ITW, LMT, NOC, RTN
by: Insider Monkey

Many companies in the industrial goods sector are almost as stable as utilities because they operate on such long-term contracts. For investors, this means that they can get the benefits of consistent growth and stable dividends but have slightly more exposure. There may be more risk but there is also a lot more upside. The companies on this list fit the bill. They also offer strong EPS growth, low forward P/E ratios and betas only slightly more volatile than the market at large.

Boeing Co. (NYSE:BA) is an aerospace and defense company with a $54.98 billion market cap. It has a forward P/E of 14.95 and pays a 2.38% dividend yield on a 32.77% payout ratio. The company’s EPS is expected to grow 10.99% next year and 11.53% over the next five years. BA has a beta of 1.25 and recently traded at $74.43 a share. Ken Fisher’s Fisher Asset Management had $311.96 million in BA at the end of the third quarter.

Dover Corp. (NYSE:DOV) is a diversified machinery company with a $10.69 billion market cap. It has a forward P/E of 11.79 and pays a 2.19% dividend yield on a 25.25% payout ratio. The company’s EPS is expected to grow 8.19% next year and 14.00% over the next five years. DOV has a beta of 1.36 and recently traded at $57.53 a share. Ken Fisher’s Fisher Asset Management was also a fan of DOV. The fund had $347.19 million invested in the company at the end of the third quarter. Ric Dillon’s Diamond Hill Capital was also a fan. It had $119.01 million in DOV at the end of September.

Emerson Electric Co. (NYSE:EMR) is an industrial equipment and components company with a $34.67 billion market cap. It has a forward P/E of 11.82 and pays a 3.39% dividend yield on a 42.34% payout ratio. The company’s EPS is expected to grow 12.71% next year and 13.03% over the next five years. EMR has a beta of 1.23 and recently traded at $47.49 a share. Ken Fisher owned a significant position in EMR at the end of the third quarter as well, coming in at $204.45 million. Jim Simons’ Renaissance Technologies was also bullish on the company. It initiated a new $55.91 million position in EMR during the third quarter.

Eaton Corp. (NYSE:ETN) is an industrial electrical equipment company with a $15.14 billion market cap. It has a forward P/E of 10.18 and pays a 3.00% dividend yield on a 35.17% payout ratio. The company’s EPS is expected to grow 11.25% next year and 10.83% over the next five years. ETN has a beta of 1.51 and recently traded at $45.22 a share. Bain Capital’s Brookside Capital had $104.90 million invested in ETN at the end of the third quarter, roughly 2.16% of its total portfolio.

General Dynamics Corp. (NYSE:GD) is an aerospace and defense company with a $24.08 billion market cap. It has a forward P/E of 8.93 and pays a 2.78% dividend yield on a 24.96% payout ratio. The company’s EPS is expected to grow 4.70% next year and 8.70% over the next five years. GD has a beta of 1.25 and recently traded at $67.41 a share. James A. Star’s Longview Asset Management had $1.89 billion invested in GD at the end of the third quarter, or 86.53% of its portfolio. Warren Buffett’s Berkshire Hathaway was also a fan of the company, opening a new $174.34 million position in GD during the third quarter.

Illinois Tool Works, Inc. (NYSE:ITW) is a diversified machinery company with a $23.09 billion market cap. It has a forward P/E of 11.46 and pays a 3.01% dividend yield on a 34.48% payout ratio. The company’s EPS is expected to grow 10.61% next year and 13.46% over the next five years. ITW has a beta of 1.15 and recently traded at $47.70 a share. Sandy Nairn’s Edinburgh Partners was so bullish about ITW during the third quarter that it initiated a new $231.94 million position in the company, roughly 10.24% of its total portfolio.

Lockheed Martin Corp. (NYSE:LMT) is an aerospace and defense company with a $25.88 billion market cap. It has a forward P/E of 10.12 and pays a 5.00% dividend yield on a 48.86% payout ratio. The company’s EPS is expected to grow 3.95% next year and 8.96% over the next five years. LMT has a beta of 0.90 and recently traded at $79.82 a share. Jean-Marie Eveillard’s First Eagle Investment Management had $273.66 million in LMT at the end of September after upping its holding in the company by +10% during the third quarter.

Northrop Grumman Corp. (NYSE:NOC) is an aerospace and defense company with a $15.13 billion market cap. It has a forward P/E of 8.44 and pays a 3.45% dividend yield on a 30.93% payout ratio. The company’s EPS is expected to shrink -1.86% next year and 7.94% over the next five years. NOC has a beta of 1.09 and recently traded at $57.68 a share. Jean-Marie Eveillard’s First Eagle Investment Management liked NOC almost just as much during the third quarter. The fund increased its stake in the company by +49%, bringing its total position in the company to $249.07 million at the end of September.

Raytheon Co. (NYSE:RTN) is an aerospace and defense company with a $16.64 billion market cap. It has a forward P/E of 9.21 and pays a 3.58% dividend yield on a 33.30% payout ratio. The company’s EPS is expected to grow 3.37% next year and 8.43% over the next five years. RTN has a beta of 0.68 and recently traded at $47.81 a share. Phill Gross and Robert Atchinson’s Adage Capital Management had $266.09 million in RTN at the end of September after raising its holding in the company by +11% during the third quarter.



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