Industrial Sector Short List: 30 Dividend Growth Stocks

Dividend Earner

Dividend Earner

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Comparing dividend stocks by sector is an important step in my stock selection process. As your portfolio grows, you should have more than one dividend stock per sector to limit your exposure.

As you get ready to invest more money either from dividends or from new money, which sector do you add to or which stock? It’s entirely possible that one of your holdings is underperforming and you want a replacement. It happens. Understanding your options by sector is a diligent and smart investing approach.

Industrial Stocks

I have identified 30 industrial dividend growth stocks from the S&P 500 dividend achiever list. Of that list, 11 are S&P500 dividend aristocrats with 6 of them in the dividend king category. As a quick summary, here is what each of the classifications means:

  • Dividend Achiever: A stock that has increased its dividend for 10 consecutive years.
  • Dividend Aristocrat: A stock that has increased its dividend for 25 consecutive years.
  • Dividend King: A stock that has increased its dividend for 50 consecutive years.

As you probably know, a longer streak doesn’t mean a better stock. There are many more criteria that must be evaluated but what a long streak tells us is the commitment to shareholder value the company has and its ability to manage the company’s cash.

There many more industrial stocks but the list below is a good start to find an industrial holding for your portfolio.

Industrial Stocks By Industry

While they are all industrial stocks, understanding the industry they operate in can be useful as you may not have an affinity for the industry and not all industry perform the same. It may also be useful to compare by industries in some cases as opposed to the sector alone.

Industrial Dividend Stocks by Industry

Industrial Product Industry

The industrial products has some really large conglomerates with a good number of dividend aristocrats. This industry should get your attention for the industrial sector.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
GE NYSE:GE General Electric 182.80 21.00 0.19 NO 1 9 94
HON NYSE:HON Honeywell International Inc. 130.93 23.70 2.15 NO 1 9 94
ITW NYSE:ITW Illinois Tool Works 78.04 26.81 2.14 YES 1 9 94
PH NYSE:PH Parker-Hannifin Corporation 69.00 26.57 1.10 NO 1 9 94
EMR NYSE:EMR Emerson Electric 62.97 32.28 1.91 YES 1 9 94
ROP NYSE:ROP Roper Technologies, Inc. 58.43 42.87 0.55 YES 1 9 94
MMM NYSE:MMM 3M 51.90 0.00 6.43 YES 1 9 94
CMI NYSE:CMI Cummins Inc. 38.10 52.71 2.50 NO 1 9 94
DOV NYSE:DOV Dover Corp 23.93 22.75 1.19 YES 1 9 94
JBHT NASDAQ:JBHT JB Hunt Transport Services Inc. 20.72 28.78 0.86 NO 1 9 94
NDSN NASDAQ:NDSN Nordson Corporation 15.14 30.94 1.03 NO 1 9 94
PNR NYSE:PNR Pentair 13.43 21.69 1.13 YES 1 9 94
AOS NYSE:AOS AO Smith Corp. 12.63 23.28 1.49 YES 1 9 94

Transportation & Logistics Industry

The transportation is a solid industry with some oligopoly business in the mix. I find it to be another strong industry with dividend growth potential.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
UNP NYSE:UNP Union Pacific Corp. 153.03 24.01 2.07 NO 1 9 78
UPS NYSE:UPS United Parcel Service Inc. 131.27 19.75 4.23 NO 1 9 58
CSX NASDAQ:CSX CSX 74.82 20.71 1.26 NO 1 9 78
FDX NYSE:FDX FedEx Corporation 61.89 14.65 2.03 NO 1 9 58
NSC NYSE:NSC Norfolk Southern 58.63 32.32 2.08 NO 1 9 78
LUV NYSE:LUV Southwest Airlines Company 20.44 50.44 0.00 NO 1 9 14
EXPD NASDAQ:EXPD Expeditors International of Washington Inc. 17.45 24.26 1.14 YES 1 9 58
AAL NASDAQ:AAL American Airlines Group Inc. 9.61 13.31 0.00 NO 1 9 14
CHRW NASDAQ:CHRW CH Robinson Worldwide Inc. 8.47 26.69 3.37 NO 1 9 58

Aerospace & Defense Industry

This is the industry to invest in if you want to profit from the government spending in defense. It may be important to monitor the spending targets from the government to establish the your intended exposure and keep up with the elections.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
LMT NYSE:LMT Lockheed Martin Corporation 104.61 15.70 2.91 NO 1 9 13
GD NYSE:GD General Dynamics Corporation 74.61 22.65 1.94 YES 1 9 13
NOC NYSE:NOC Northrop Grumman Corporation 68.94 34.15 1.63 NO 1 9 13

Business Services Industry

A dependable industry and a necessary one as it tends to resolve problems outside of the core business of other companies.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
CTAS NASDAQ:CTAS Cintas Corp 63.39 45.32 0.86 YES 1 9 92

Employment Services Industry

Another dependable industry and a necessary one to supply corporations with flexible manpower. It is however tied to the economy and something to be aware of.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
ADP NASDAQ:ADP Automatic Data Processing 99.58 28.21 2.31 YES 1 9 96
RHI NYSE:RHI Robert Half International Inc. 8.56 21.00 2.61 NO 1 9 96

Farm & Construction Machinery Industry

Farming is a necessity that will continue to require needs and so will constructions even if just for maintenance over many years.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
CAT NYSE:CAT Caterpillar 169.38 16.84 1.53 YES 1 9 40
DE NYSE:DE Deere & Company 104.13 10.90 1.57 NO 1 9 40

Industrial Distribution Industry

Another industry dependent on the core industries generating products and needing parts. Maintenance and supply will still be needed and in place which means the economy could have less of an impact on this industry.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
GWW NYSE:GWW W.W. Grainger, Inc. 47.71 26.59 0.77 YES 1 9 52
FAST NASDAQ:FAST Fastenal Company 43.28 37.52 2.06 NO 1 9 52

Waste Management Industry

An industry that’s almost a necessity. It doesn’t fall in the food, shelter and safety category but like utilities, it’s a by-product necessity of the develop world. In my book, that makes it a dependable industry with growth while somewhat regulated.

Ticker Ticker Company Market Cap P/E Yield Aristocrat Graph SectorID IndustryID
WM NYSE:WM Waste Management 83.43 36.69 1.44 NO 1 9 110
RSG NYSE:RSG Republic Services, Inc. 57.95 33.69 1.16 NO 1 9 110

Industrial Dividend Stocks – My Short List

You probably noticed that I favor some industries over others. With that said, here are the stocks on my short list based on my dividend growth investing rules. Railway is an oligopoly and a necessity to move our goods.

  • Union Pacific Corp.
  • FedEx Corporation
  • CSX
  • Cintas
  • Waste Management