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16 Of The Best Dividend Paying Industrials With Strong Growth And Low Debt Ratios

Best Dividend Paying Industrial Stocks Researched By “long-term-investments.blogspot.com. Industrials are very good for your Asset Allocation. Behind Consumer and Services, the industrial sector is one of the biggest parts of the U.S. Economy. In total, there are 355 companies listed with a common market capitalization of USD 48.43 trillion. The average P/E ratio amounts to 13.77 and the dividend yield is near 2 percent.

In order to find the best dividend paying growth stocks from the industrial sector, I screened all companies with a positive dividend yield, great earnings per share growth of more than 10 percent and an operating margin over 15 percent. To get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.5. Sixteen industrials remained of which nine are currently recommended to buy. The best recommended stock is the aerospace and defense company HEICO (HEI) with a yield of 0.32 percent and a buy rating.

Here are my favorite stocks:
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Illinois Tool Works (NYSE:ITW) has a market capitalization of $28.68 billion. The company employs 65,000 people, generates revenue of $17,786.58 million and has a net income of $2,017.01 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,320.68 million. The EBITDA margin is 18.67 percent (operating margin 15.35 percent and net profit margin 11.34 percent).

Financial Analysis: The total debt represents 22.19 percent of the company’s assets and the total debt in relation to the equity amounts to 39.83 percent. Due to the financial situation, a return on equity of 20.60 percent was realized. Twelve trailing months earnings per share reached a value of $3.98. Last fiscal year, the company paid $1.40 in form of dividends to shareholders. The earnings are expected to grow yearly by 11.16 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.37, P/S ratio 1.61 and P/B ratio 2.95. Dividend Yield: 2.48 percent. The beta ratio is 1.17.


Long-Term Stock History Chart Of Illinois Tool Works (Click to enlarge)
Long-Term Dividends History of Illinois Tool Works (ITW) (Click to enlarge)
Long-Term Dividend Yield History of Illinois Tool Works (NYSE: ITW) (Click to enlarge)

Fastenal Company (NASDAQ:FAST) has a market capitalization of $13.02 billion. The company employs 15,578 people, generates revenue 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. The EBITDA margin is 22.38 percent (operating margin 20.77 percent and net profit margin 12.94 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 26.11 percent was realized. Twelve trailing months earnings per share reached a value of $1.34. Last fiscal year, the company paid $0.65 in form of dividends to shareholders. The earnings are expected to grow yearly by 17.12 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 32.87, P/S ratio 4.71 and P/B ratio 8.90. Dividend Yield: 1.73 percent. The beta ratio is 0.95.


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)

FLIR Systems (NASDAQ:FLIR) has a market capitalization of $3.17 billion. The company employs 3,084 people, generates revenue of $1,544.06 million and has a net income of $222.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $390.20 million. The EBITDA margin is 25.27 percent (operating margin 20.28 percent and net profit margin 14.42 percent).

Financial Analysis: The total debt represents 11.54 percent of the company’s assets and the total debt in relation to the equity amounts to 15.70 percent. Due to the financial situation, a return on equity of 14.36 percent was realized. Twelve trailing months earnings per share reached a value of $1.47. Last fiscal year, the company paid $0.24 in form of dividends to shareholders. The earnings are expected to grow yearly by 12.53 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.23, P/S ratio 2.05 and P/B ratio 2.06. Dividend Yield: 1.34 percent. The beta ratio is 0.80.


Long-Term Stock History Chart Of FLIR Systems (Click to enlarge)
Long-Term Dividends History of FLIR Systems (FLIR) (Click to enlarge)
Long-Term Dividend Yield History of FLIR Systems (NASDAQ: FLIR) (Click to enlarge)

Precision Castparts (NYSE:PCP) has a market capitalization of $23.02 billion. The company employs 21,480 people, generates revenue of $7,214.60 million and has a net income of $1,217.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,985.60 million. The EBITDA margin is 27.52 percent (operating margin 25.12 percent and net profit margin 16.88 percent).

Financial Analysis: The total debt represents 1.97 percent of the company’s assets and the total debt in relation to the equity amounts to 2.49 percent. Due to the financial situation, a return on equity of 15.85 percent was realized. Twelve trailing months earnings per share reached a value of $8.85. Last fiscal year, the company paid $0.12 in form of dividends to shareholders. The earnings are expected to grow yearly by 12.95 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.90, P/S ratio 3.19 and P/B ratio 2.75. Dividend Yield: 0.08 percent. The beta ratio is 1.27.


Long-Term Stock History Chart Of Precision Castparts (Click to enlarge)
Long-Term Dividends History of Precision Castparts (PCP) (Click to enlarge)
Long-Term Dividend Yield History of Precision Castparts (NYSE: PCP) (Click to enlarge)


Take a closer look at the full table of the best dividend paying industrial stocks with strong growth and low debt. The average price to earnings ratio (P/E ratio) amounts to 15.19 and forward P/E ratio is 16.13. The dividend yield has a value of 1.90 percent. Price to book ratio is 3.11 and price to sales ratio 2.11. The operating margin amounts to 19.33 percent and the beta ratio is 1.37. The average stock has a debt to equity ratio of 0.16.

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

Best Dividend Paying Industrials (Click to enlarge)

Related stock ticker symbols:
XIN, JHX, SHS, CASC, ITW, RGR, FAST, KMT, LFUS, FLIR, SNHY, CLC, RBN, HEI, GDI, PCP

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* 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.