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The industrial goods sector is scarcely spoken of in the financial media. This strikes me as odd since industrial goods are between commodity goods and technology goods in terms of complexity, yet the basic materials sector and the technology sector both receive more attention. Somehow components are less ineresting than the commodities they were made from and the products they are used to make.

Regardless, there are great stocks to be found in rough and boring sectors. The following screen was performed to find attractive, dividend paying stocks:

Dividend yield. Each stock pays a dividend yield of at least 2%, which is in excess of the 10-year Treasury bond and the dividend yield of the S&P 500.

Long term historical dividend growth. Each of these stocks had over a 5% average annual increase in dividend payments over the past 10 years. (Oddly, historical dividend growth is seldom discussed.) Thus, each of these dividend stocks has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate Treasuries.

Long term historical return on equity. Each of these stocks has positive average ROE over the past 10 years. This criterion filters for stocks which were able to endure and prosper over the economic downturn. Furthermore, this long term history filters out firms that are experiencing a short burst of good fortune.

Price multiples, dividend histories, and return on equity histories are provided below:

Ampco-Pittsburgh Corp. (NYSE:AP) recently traded at $19.71 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of Ampco-Pittsburgh paid a total of $5.08 in dividends. Of these dividend payments, a total of $3.08 were paid in the last five years.

Ampco-Pittsburgh shareholders have seen a 4.6% increase in share price over the past year. At present, shares of this micro cap stock trade at a price-to-book ratio of 1.0, a price-to-earnings multiple of 21.3, and a price-to-sales multiple of 0.6 (trailing twelve months). Over the past decade, shareholders enjoyed a 7.4% average annual return on equity.

Chase Corp. (NYSEMKT:CCF) recently traded at $13.26 per share. At this price level, the stock has a 2.6% dividend yield. For 10 out of the past 10 fiscal years, a share of Chase paid a total of $2.19 in dividends. Of these dividend payments, a total of $1.35 were paid in the last five years.

Chase shareholders have endured a -3.6% drop in share price over the past year. At present, shares of this micro cap stock trade at a price-to-book ratio of 1.3, a price-to-earnings multiple of 11.0, and a price-to-sales multiple of 1.0 (trailing twelve months). Over the past decade, shareholders savored a 14.7% average annual return on equity.

Crane Co. (NYSE:CR) recently traded at $49.17 per share. At this price level, the stock has a 2.1% dividend yield. For 10 out of the past 10 fiscal years, a share of Crane paid a total of $5.68 in dividends. Of these dividend payments, a total of $3.63 were paid in the last five years.

Crane shareholders have seen a 5.3% increase in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.7, a price-to-earnings multiple of 15.3, and a price-to-sales multiple of 1.2 (trailing twelve months). Over the past decade, shareholders enjoyed a 8.7% average annual return on equity.

Dover Corp. (NYSE:DOV) recently traded at $60.22 per share. At this price level, the stock has a 2.1% dividend yield. For 10 out of the past 10 fiscal years, a share of Dover paid a total of $7.38 in dividends. Of these dividend payments, a total of $4.47 were paid in the last five years.

Dover shareholders have seen a 3.2% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 2.3, a price-to-earnings multiple of 13.5, and a price-to-sales multiple of 1.4 (trailing twelve months). Over the past decade, shareholders savored a 11.8% average annual return on equity.

Emerson Electric Co. (NYSE:EMR) recently traded at $48.54 per share. At this price level, the stock has a 3.3% dividend yield. For 10 out of the past 10 fiscal years, a share of Emerson paid a total of $10.38 in dividends.

Emerson shareholders have seen a 5.7% increase in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 3.5, a price-to-earnings multiple of 15.1, and a price-to-sales multiple of 1.5 (trailing twelve months). Over the past decade, shareholders savored a 19.9% average annual return on equity.

Graco Inc. (NYSE:GGG) recently traded at $41.65 per share. At this price level, the stock has a 2.2% dividend yield. For 10 out of the past 10 fiscal years, a share of Graco paid a total of $5.03 in dividends. Of these dividend payments, a total of $3.54 were paid in the last five years.

Graco shareholders have seen a 3.1% change in share price over the past year. At present, shares of this mid-cap stock trade at a price-to-book ratio of 7.5, a price-to-earnings multiple of 18.6, and a price-to-sales multiple of 2.9 (trailing twelve months). Over the past decade, shareholders savored a 45.3% average annual return on equity.

Illinois Tool Works Inc. (NYSE:ITW) recently traded at $49.37 per share. At this price level, the stock has a 2.9% dividend yield. For 10 out of the past 10 fiscal years, a share of Illinois Tool Works paid a total of $7.92 in dividends. Of these dividend payments, a total of $5.45 were paid in the last five years.

Illinois Tool Works shareholders have seen a 6.0% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 2.4, a price-to-earnings multiple of 12.5, and a price-to-sales multiple of 1.4 (trailing twelve months). Over the past decade, shareholders savored a 16.3% average annual return on equity.

Martin Marietta Materials Inc. (NYSE:MLM) recently traded at $78.97 per share. At this price level, the stock has a 2.1% dividend yield. For 10 out of the past 10 fiscal years, a share of Martin Marietta paid a total of $10.39 in dividends.

Martin Marietta shareholders have seen a 3.2% change in share price over the past year. At present, shares of this mid-cap stock trade at a price-to-book ratio of 2.5, a price-to-earnings multiple of 43.2, and a price-to-sales multiple of 2.0 (trailing twelve months). Over the past decade, shareholders savored a 13.0% average annual return on equity.

Met-Pro Corp. (NYSE:MPR) recently traded at $9.66 per share. At this price level, the stock has a 3.0% dividend yield. For 10 out of the past 10 fiscal years, a share of Met-Pro paid a total of $1.93 in dividends. Of these dividend payments, a total of $1.12 were paid in the last five years.

Met-Pro shareholders have seen a 5.5% increase in share price over the past year. At present, shares of this micro cap stock trade at a price-to-book ratio of 1.6, a price-to-earnings multiple of 20.7, and a price-to-sales multiple of 1.5 (trailing twelve months). Over the past decade, shareholders savored a 10.4% average annual return on equity.

Rockwell Automation Inc. (NYSE:ROK) recently traded at $79.63 per share. At this price level, the stock has a 2.1% dividend yield. For 10 out of the past 10 fiscal years, a share of Rockwell paid a total of $9.84 in dividends. Of these dividend payments, a total of $6.18 were paid in the last five years.

Rockwell shareholders have seen an 8.5% increase in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 6.5, a price-to-earnings multiple of 16.6, and a price-to-sales multiple of 1.9 (trailing twelve months). Over the past decade, shareholders savored a 30.8% average annual return on equity.

Though all of these industrial goods stocks have attractive dividend growth and ROE histories, many of them are currently trading at high price multiples. Chase, Dover, and Illinois Tool Works are trading at attractive price multiples and should be considered as potential additions to your income portfolio.

Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing. To repeat, this research does NOT constitute a guarantee.

Source: Growing Dividends From Industrial Goods