My 3 Favorite Industrial Dividend Stocks with Double-Digit Expected Earnings Growth

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Feb 12, 2013
The industrial sector has a total market capitalization of USD73.1 trillion. The average P/E is 17.19 and yields are at a 2.02 percent rate.

Industrials and conglomerates are one of the top sectors where investors have put their money within the recent months. The whole sector is up 12.8 percent on a 3-month basis and 16.6 percent over the recent half-year.

I believe that most of the stocks are cyclic and their performance depends on a healthy economic growth. But not everything is bad. I own some industrials and would like to increase my exposure the sector. The only question is when.

In 2009, I bought shares of General Electric when it started to struggle with financing problems of its money division. It was close to the after-peak of the financial crisis. As of now, GE has not fully recovered but my unrealized return on the stock is far over 100 percent.

Growth perspectives from GE are still good. The market expects a double-digit growth for the next years. Today, I would like to show you some other dividend stocks from the industrial sector with an expected earnings growth over 10 percent. Below is a small list of the best yielding stocks with a market capitalization over USD10 billion. Fourteen of the results are currently recommended to buy.

Here are my favorite stocks:

General Electric (NYSE:GE) has a market capitalization of $235.42 billion. The company employs 301,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17.406 billion. The EBITDA margin is 11.81 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).

Financial Analysis: The total debt represents 60.43 percent of the company’s assets and the total debt in relation to the equity amounts to 336.67 percent. Due to the financial situation, a return on equity of 12.26 percent was realized. Twelve trailing months earnings per share reached a value of $1.39. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.17, the P/S ratio is 1.60 and the P/B ratio is finally 1.92. The dividend yield amounts to 3.38 percent and the beta ratio has a value of 1.63.

Roper Industries (ROP) has a market capitalization of $11.72 billion. The company employs 8,570 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 $0.55 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.54, the P/S ratio is 3.92 and the P/B ratio is finally 3.18. The dividend yield amounts to 0.55 percent and the beta ratio has a value of 0.79.

Precision Castparts (PCP) has a market capitalization of $27.62 billion. The company employs 21,480 people, generates revenue of $7.214 billion and has a net income of $1.217 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.985 billion. The EBITDA margin is 27.52 percent (the operating margin is 25.12 percent and the 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 $9.25. Last fiscal year, the company paid $0.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.51, the P/S ratio is 3.86 and the P/B ratio is finally 3.32. The dividend yield amounts to 0.06 percent and the beta ratio has a value of 1.21.

Take a closer look at the full list of the best growing industrial dividend stocks. The average P/E ratio amounts to 19.31 and forward P/E ratio is 15.06. The dividend yield has a value of 1.71 percent. Price to book ratio is 3.75 and price to sales ratio 1.93. The operating margin amounts to 12.90 percent and the beta ratio is 1.29. Stocks from the list have an average debt to equity ratio of 0.72.

Related stock ticker symbols:

GE, ABB, SI, BA, HON, CRH, ROK, DOV, PNR, KUB, IR, FLR, FAST, AME, ROP, DHR, PCP

Selected Articles:

· 20 Most Recommended Industrial Dividend Stocks | Top Stock Buy List

· Best Industrial Goods Stock Picks For 2013

· The 20 Best Dividend Paying Stocks From The Industrial Sector

· 20 Of The Largest Dividend Payers From The Industrial Sector

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Industrial dividend stocks with the highest sector growth rates, originally published at "long-term-investments.blogspot.com.