Investors must be careful because an industrial
goods stock has no end-consumer as client. They are more volatile, depending on
the raw economy, and they can lose in recessions 50 percent of its profits or
more.
Not all industrials are highly cyclic. It mainly
depends on the degree of diversification. United Technology is an example for a
high quality dividend growth stock which is located close to the industrial
sector. UTX is also a low beta stock but more likely classifiable as a
conglomerate.
Today I like to discover the diversified
machinery industry by the highest dividend paying stocks. 69 companies have a
relationship to the industry but only 42 pay dividends. The average dividend
yield of stocks from the diversified machinery industry amounts to 2.40 percent
and the average P/E is 19.0.
Linked is a list of the 12 large caps with the highest yield. Nearly all of them have a current buy or better rating. Diversification
is the key for a successful investment.
