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8 Industrial Dividend Stocks, Safer Than The Overall Market

Industrial dividend stocks with low beta ratios and large market capitalization originally published at "long-term-investments.blogspot.com". A diversified portfolio is the basis for a strong stability. The more industries and sectors you cover, the lower the single risk you own. This insurance costs performance because nobody could know in detail which sectors will run good over the next years and which are the big loser.

Today I like to go forward with my monthly screen of the safest stocks from the major sectors. Industrials are in focus of my research. These are my criteria:

- Market Capitalization over USD 10 billion
- Beta ratio below 1

Only eight companies fulfilled these criteria of which five have a current buy or better rating. The number of stocks is very low. It could be related to the fact that the sector has only 360 companies listed and industrials are more cyclic.

Here are my favorite stocks:
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Lockheed Martin (NYSE:LMT) has a market capitalization of $31.39 billion. The company employs 120,000 people, generates revenue of $47.182 billion and has a net income of $2.745 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.639 billion. The EBITDA margin is 11.95 percent (the operating margin is 9.40 percent and the net profit margin 5.82 percent).


Financial Analysis: The total debt represents 16.32 percent of the company’s assets and the total debt in relation to the equity amounts to 16,174.36 percent. Due to the financial situation, a return on equity of 527.88 percent was realized. Twelve trailing months earnings per share reached a value of $8.37. Last fiscal year, the company paid $4.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.62, the P/S ratio is 0.65 and the P/B ratio is finally 789.99. The dividend yield amounts to 4.79 percent and the beta ratio has a value of 0.94.

Long-Term Stock Price Chart Of Lockheed Martin (LMT)
Long-Term Dividend Payment History of Lockheed Martin (LMT)
Long-Term Dividend Yield History of Lockheed Martin (LMT)

Fastenal Company (NASDAQ:FAST) has a market capitalization of $14.48 billion. The company employs 15,145 people, generates revenue of $3.133 billion and has a net income of $420.54 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $727.74 million. The EBITDA margin is 23.22 percent (the operating margin is 21.50 percent and the net profit margin 13.42 percent).

Financial Analysis: The total debt represents 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 27.86 percent was realized. Twelve trailing months earnings per share reached a value of $1.42. Last fiscal year, the company paid $1.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 34.48, the P/S ratio is 4.65 and the P/B ratio is finally 9.34. The dividend yield amounts to 1.63 percent and the beta ratio has a value of 0.95.

Long-Term Stock Price Chart Of Fastenal Company (FAST)
Long-Term Dividend Payment History of Fastenal Company (FAST)
Long-Term Dividend Yield History of Fastenal Company (FAST)

Roper Industries (NYSE:ROP) has a market capitalization of $12.30 billion. The company employs 9,475 people, generates revenue of $2.993 billion and has a net income of $483.36 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $911.29 million. The EBITDA margin is 30.44 percent (the operating margin is 25.27 percent and the net profit margin 16.15 percent).

Financial Analysis: The total debt represents 28.60 percent of the company’s assets and the total debt in relation to the equity amounts to 54.83 percent. Due to the financial situation, a return on equity of 14.05 percent was realized. Twelve trailing months earnings per share reached a value of $4.85. Last fiscal year, the company paid $0.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.61, the P/S ratio is 4.11 and the P/B ratio is finally 3.33. The dividend yield amounts to 0.53 percent and the beta ratio has a value of 0.79.

Long-Term Stock Price Chart Of Roper Industries (ROP)
Long-Term Dividend Payment History of Roper Industries (ROP)
Long-Term Dividend Yield History of Roper Industries (ROP)


Take a closer look at the full list of the safest industrial dividend stocks. The average P/E ratio amounts to 20.90 and forward P/E ratio is 16.66. The dividend yield has a value of 2.14 percent. Price to book ratio is  3.66 and price to sales ratio 2.30. The operating margin amounts to 17.05 percent and the beta ratio is 0.84. Stocks from the list have an average debt to equity ratio of 0.64.

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

The Safest Industrial Dividend Stocks (Click to enlarge)

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Related stock ticker symbols:
LMT, RTN, WM, RSG, FAST, AME, ROP, DHR

Selected Articles:


*I am long LMT, RTN. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.


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