20 Most Recommended Industrial Dividend Stocks | Top Stock Buy List

Industrial goods stocks with highest buy rating originally published at "long-term-investments.blogspot.com". Today I like to finalize my January posts of the highest recommended stocks from the eight most important sectors of the economy. Industrial goods are the latest sector to discover.

The industrial sector is a small one with 359 related companies and only 172 of them are dividend stocks. The average dividend yield amounts to 2.01 and the P/E ratio has a value of 24.59 in average.

I personally have only a small share of industrial stocks in my private portfolios. The main reason is that the sector has many cyclic companies and stocks from the sector are often very capital intensive. They need huge amounts of money to keep the business running and growing. As a result, dividend payments are low.

But there are also some great growth stories. I own shares of United Technologies, Lockheed Martin and Raytheon. My biggest position is General Electric on which I have 104% unrealized gains. Not enough, I have around 10 -20 additional stocks on my watch list.

Below is a small compilation of the 20 highest recommended dividend stocks with a market capitalization over USD 2 billion. What do you think about the list of the most recommended industrial goods dividend stocks? Do you own some of them? Please let me know and leave a comment in the box below.

The Biggest Ex-Dividend Stocks On October 02, 2012

The Best And Biggest Ex-Dividend Stocks Researched By Dividend Yield - Stock, Capital, Investment. Dividend Investors should have a quiet overview of stocks with upcoming ex-dividend dates. The ex-dividend date is the final date on which the new stock buyer couldn’t receive the next dividend. If you like to receive the dividend, you need to buy the stock before the ex-dividend date. I made a little screen of the best yielding stocks with a higher capitalization that have their ex-dividend date on the next trading day.

A full list of all stocks with ex-dividend date can be found here: Ex-Dividend Stocks on October 02, 2012. In total, 10 stocks and preferred shares go ex-dividend - of which 1 yield more than 3 percent. The average yield amounts to 1.77%.

Here is the sheet of the best yielding, large capitalized Ex-Dividend stocks:

Company	Ticker	Mcap	P/E	P/B	P/S	Yield
ABM Industries Inc.	ABM	1.03B	19.52	1.24	0.24	3.06%
Cisco Systems, Inc.	CSCO	101.25B	12.82	1.97	2.20	2.93%
Sims Metal Management Limited	SMS	2.03B	-	0.81	0.22	2.09%
Legg Mason Inc.	LM	3.33B	23.07	0.61	1.29	1.78%
Simpson Manufacturing Co., Inc.	SSD	1.38B	29.20	1.79	2.18	1.75%
Lennox International, Inc.	LII	2.47B	25.59	5.01	0.75	1.65%
Discover Financial Services	DFS	20.46B	9.13	2.20	3.09	1.01%
Banco Bradesco S.A.	BBD	61.46B	11.16	1.95	3.00	0.77%
Invacare Corporation	IVC	465.63M	-	0.76	0.26	0.35%
Banco Bradesco S.A.	BBDO	-	-	-	-	-

11 Service Dividend Stocks With Buy Or Better Rating

The Best Yielding Services Shares With Buy Or Better Recommendation Researched by Dividend Yield - Stock, Capital, Investment. Here is a current overview of stocks from the services sector with a market capitalization of more than USD 2 billion (mid capitalized), a dividend yield of more than 3 percent and finally a buy or better analyst rating. 11 companies from the services sector fulfilled these criteria of which 2 are high yields. One stocks has a strong buy rating.

Here are my favorite stocks:

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American Eagle Outfitters (NYSE: AEO) has a market capitalization of $2.53 billion. The company employs 6,900 people, generates revenues of $2,967.56 million and has a net income of $181.93 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $456.51 million. Because of these figures, the EBITDA margin is 15.38 percent (operating margin 10.65 percent and the net profit margin finally 6.13 percent).


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 12.42 percent was realized. Twelve trailing months earnings per share reached a value of $0.95. Last fiscal year, the company paid $0.43 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 13.71, Price/Sales 0.85 and Price/Book ratio 1.88. Dividend Yield: 3.36 percent. The beta ratio is 1.01.

Long-Term Stock History Chart Of American Eagle Outfitters (Click to enlarge)

Long-Term History of Dividends from American Eagle Outfitters (NYSE: AEO) (Click to enlarge)

Long-Term Dividend Yield History of American Eagle Outfitters (NYSE: AEO) (Click to enlarge)

Pearson PLC (NYSE: PSO) has a market capitalization of $15.46 billion. The company employs 36,317 people, generates revenues of $8,674.54 million and has a net income of $802.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,413.84 million. Because of these figures, the EBITDA margin is 16.30 percent (operating margin 13.12 percent and the net profit margin finally 9.25 percent).


The total debt representing 21.67 percent of the company’s assets and the total debt in relation to the equity amounts to 41.75 percent. Due to the financial situation, a return on equity of 10.71 percent was realized. Twelve trailing months earnings per share reached a value of $1.00. Last fiscal year, the company paid $0.59 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 19.00, Price/Sales 1.79 and Price/Book ratio 1.79. Dividend Yield: 3.38 percent. The beta ratio is 0.78.

Long-Term Stock History Chart Of Pearson PLC (ADR) (Click to enlarge)

Long-Term History of Dividends from Pearson PLC (ADR) (NYSE: PSO) (Click to enlarge)

Long-Term Dividend Yield History of Pearson PLC (ADR) (NYSE: PSO) (Click to enlarge)

Watsco (NYSE: WSO) has a market capitalization of $2.26 billion. The company employs 4,000 people, generates revenues of $2,844.60 million and has a net income of $111.72 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $176.34 million. Because of these figures, the EBITDA margin is 6.20 percent (operating margin 5.82 percent and the net profit margin finally 3.93 percent).


The total debt representing 0.82 percent of the company’s assets and the total debt in relation to the equity amounts to 1.32 percent. Due to the financial situation, a return on equity of 10.11 percent was realized. Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, the company paid $2.04 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 25.72, Price/Sales 0.79 and Price/Book ratio 2.91. Dividend Yield: 3.62 percent. The beta ratio is 0.93.

Long-Term Stock History Chart Of Watsco, Incorporated (Click to enlarge)

Long-Term History of Dividends from Watsco, Incorporated (NYSE: WSO) (Click to enlarge)

Long-Term Dividend Yield History of Watsco, Incorporated (NYSE: WSO) (Click to enlarge)

Darden Restaurants (NYSE: DRI) has a market capitalization of $5.72 billion. The company employs 180,000 people, generates revenues of $7,500.20 million and has a net income of $478.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,057.60 million. Because of these figures, the EBITDA margin is 14.10 percent (operating margin 8.63 percent and the net profit margin finally 6.38 percent).


The total debt representing 30.16 percent of the company’s assets and the total debt in relation to the equity amounts to 85.16 percent. Due to the financial situation, a return on equity of 25.00 percent was realized. Twelve trailing months earnings per share reached a value of $3.26. Last fiscal year, the company paid $1.28 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 13.66, Price/Sales 0.76 and Price/Book ratio 3.10. Dividend Yield: 3.86 percent. The beta ratio is 0.87.

Long-Term Stock History Chart Of Darden Restaurants, Inc. (Click to enlarge)

Long-Term History of Dividends from Darden Restaurants, Inc. (NYSE: DRI) (Click to enlarge)

Long-Term Dividend Yield History of Darden Restaurants, Inc. (NYSE: DRI) (Click to enlarge)

H&R Block (NYSE: HRB) has a market capitalization of $4.79 billion. The company employs 7,900 people, generates revenues of $3,774.30 million and has a net income of $419.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $787.27 million. Because of these figures, the EBITDA margin is 20.86 percent (operating margin 17.63 percent and the net profit margin finally 11.11 percent).


The total debt representing 20.70 percent of the company’s assets and the total debt in relation to the equity amounts to 74.38 percent. Due to the financial situation, a return on equity of 28.95 percent was realized. Twelve trailing months earnings per share reached a value of $1.33. Last fiscal year, the company paid $0.60 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 12.29, Price/Sales 1.27 and Price/Book ratio 3.45. Dividend Yield: 4.89 percent. The beta ratio is 0.65.

Long-Term Stock History Chart Of H&R Block, Inc. (Click to enlarge)

Long-Term History of Dividends from H&R Block, Inc. (NYSE: HRB) (Click to enlarge)

Long-Term Dividend Yield History of H&R Block, Inc. (NYSE: HRB) (Click to enlarge)

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

11 Service Dividend Stocks With Buy Or Better Rating (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 14.92 while the forward price to earnings ratio is 12.61. The dividend yield has a value of 4.20 percent. Price to book ratio is 2.39 and price to sales ratio 0.77. The operating margin amounts to 8.77 percent.

Related stock ticker symbols:

TGP, RRD, HRB, CNK, DEG, DRI, TAM, WSO, SMS, PSO, AEO

Selected Articles:

· Best Services Stock Picks For 2012

· 11 Low Volatility Stocks From Services Sector With Goods Dividends

· Cheapest Service Stocks

· 10 High Yields With High Margins from Service Sector

I am long DRI. 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.