Industrial companies are cyclical - they outperform when the economy is growing and underperform when the economy is stagnant or a recession hits. With the economy continuing to grow around 2% per year and President Trump looking to expand that, industrial companies with dividends may attract more than their fair share of investors.
Buying shares of dividend-paying companies in the industrial sector, especially ones that have above-average yields, can help investors boast market-beating returns, with a caveat. Oftentimes, these companies are either in slow industries or may have seen their stock prices fall sharply, increasing the yield for the wrong reason.
Large companies with plenty of international exposure, including names like Weyerhauser, Pope Resources, Caterpillar and others have high-dividend yields that investors should be aware of.
TheStreet has compiled a list of five high-yielding companies in the industrial sector.
Weyerhauser (WY) owns more than 13 million acres of timberland in the U.S., making it one of the land owners in the world. With real estate continuing to rebound, the stock and its dividend have attracted investors.
It offers investors a 3.7% yield, with shares having gained 2% over the past year.
Over the past 12 months, Weyerhaeuser has generated $6.67 billion in revenue, as quarterly revenue has grown 20%. EBITDA for the same period was $1.64 billion.
Pope Resources (POPE) is another land owner, with it and its subsidiaries owning or managing 215,000 acres of timberland in Washington, Oregon and California.
At current prices, shares yield 3.78% and shares have gained roughly 13% over the past year.
Over the past 12 months, Pope has generated $86.7 million in revenue and $21.75 million in EBITDA.
Emerson Electric (EMR) provides engineering services around the world for both enterprise and consumers. With its 111,000 employees around the world, it benefits from size and scope in all of its markets.
At current prices, Emerson Electric has a 3.19% yield and share have gained nearly 7% over the past year, excluding dividends.
Over the past 12 months, Emerson has generated $14.4 billion in revenue and $3.1 billion in EBITDA.
Eaton Corp (ETN) provides power management services, dealing with "electrical systems for power quality, distribution and control; hydraulics components" and more.
Shares yield nearly 3% and have gained nearly 20% over the past year.Over the past 12 months, Eaton has generated $19.78 billion in revenue and $3.21 billion in EBITDA.
Caterpillar (CAT) makes mining and construction equipment, used all over the world.
Shares yield 2.87% and have gained more than 30% over the past year, as investors get excited about Trump's proposed $1 trillion infrastructure spending program.
Over the past 12 months, Caterpillar has generated $38.9 billion in revenue and $5.4 billion in EBITDA.
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