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3/16/2012

The Best Industrial Dividend Stocks 2012

Industrial Goods Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield - Stock, Capital, Investment. The U.S. economy has a strong industrial sector. 350 stocks belong to the sector that has a total market capitalization of USD 58.64 trillion. He is still cheap with a P/E ratio of 12.67 and a dividend yield of 2.27 percent. The best yielding stocks from the sector are from the waste management and manufacturing housing industry.

I screened the industrial sector by stocks with an operating margin and return on investment over 15 percent. In addition, the company should have a positive dividend yield. Ten companies fulfilled these criteria of which six are recommended to buy or to strong buy.

Here are my favorite stocks:
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Graco (NYSE:GGG) has a market capitalization of $3.12 billion. The company employs 2,300 people, generates revenues of $895.28 million and has a net income of $142.33 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $251.01 million. Because of these figures, the EBITDA margin is 28.04 percent (operating margin 24.52 percent and the net profit margin finally 15.90 percent).


Financial Analysis:
The total debt representing 35.30 percent of the company’s assets and the total debt in relation to the equity amounts to 95.64 percent. Due to the financial situation, a return on equity of 48.51 percent was realized. Twelve trailing months earnings per share reached a value of $2.32. Last fiscal year, the company paid $0.86 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 22.47, P/S ratio 3.49 and P/B ratio 9.66. Dividend Yield: 1.72 percent. The beta ratio is 1.60.


Long-Term Stock History Chart Of Graco Inc. (Click to enlarge)


Long-Term Dividends History of Graco Inc. (GGG) (Click to enlarge)


Long-Term Dividend Yield History of Graco Inc. (NYSE: GGG) (Click to enlarge)


Fastenal Company (NASDAQ:FAST) has a market capitalization of $15.52 billion. The company employs 15,168 people, generates revenues of $2,766.86 million and has a net income of $357.93 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $619.32 million. Because of these figures, the EBITDA margin is 22.38 percent (operating margin 20.77 percent and the net profit margin finally 12.94 percent).


Financial Analysis:
The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 26.11 percent was realized. Twelve trailing months earnings per share reached a value of $1.21. Last fiscal year, the company paid $0.65 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 43.44, P/S ratio 5.69 and P/B ratio 10.78. Dividend Yield: 1.28 percent. The beta ratio is 0.99.


Long-Term Stock History Chart Of Fastenal Company (Click to enlarge)


Long-Term Dividends History of Fastenal Company (FAST) (Click to enlarge)


Long-Term Dividend Yield History of Fastenal Company (NASDAQ: FAST) (Click to enlarge)


Kennametal (NYSE:KMT) has a market capitalization of $3.79 billion. The company employs 12,000 people, generates revenues of $2,403.49 million and has a net income of $232.28 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $415.14 million. Because of these figures, the EBITDA margin is 17.27 percent (operating margin 15.26 percent and the net profit margin finally 9.66 percent).


Financial Analysis:
The total debt representing 11.36 percent of the company’s assets and the total debt in relation to the equity amounts to 19.10 percent. Due to the financial situation, a return on equity of 15.56 percent was realized. Twelve trailing months earnings per share reached a value of $3.61. Last fiscal year, the company paid $0.48 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 13.17, P/S ratio 1.54 and P/B ratio 2.30. Dividend Yield: 1.21 percent. The beta ratio is 1.65.


Long-Term Stock History Chart Of Kennametal Inc. (Click to enlarge)


Long-Term Dividends History of Kennametal Inc. (KMT) (Click to enlarge)


Long-Term Dividend Yield History of Kennametal Inc. (NYSE: KMT) (Click to enlarge)


Here is the full table with some fundamentals (TTM):

The Best Industrial Dividend Stocks 2012 (Click to enlarge)


Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 18.89 and forward P/E ratio is 15.10. The dividend yield has a value of 1.24 percent. Price to book ratio is 5.70 and price to sales ratio 2.63. The operating margin amounts to 20.01 percent. Finally, the return on equity has a fantastic margin of 32.62 percent and the return on investment follows with a value of 20.53 percent.

Related stock ticker symbols:
ROK, GGG, COL, FAST, LFUS, SNHY, KMT, NDSN, JOY, GDI

Selected Articles: 


* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

1 comment:

  1. As a value investor I have always avoided stocks in the spotlight like Mcdonald's Or Apple computer. Although they may be very good companies their not great value stocks. The problem that I see with stocks like apple computer and Mcdonalds is that the expectations for these companies are so very high so even a modest downward revision of future earnings and sales expectations can cause a huge drop in the price of the shares. Most everyone buying apple computer and Mcdonalds are basing their decision on the future expectations of earnings and sales. Is their really a way for anyone to peer into the future with any high degree of certainty.

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