The backbone of modern society relies heavily on industrial companies, which provide the foundation for a safer, healthier, and more comfortable lifestyle. These companies have established themselves as leaders in their respective fields, boasting impressive market opportunities, robust financials, and a history of consistent earnings growth, dividend payments, and attractive investment returns. When it comes to investing, sometimes the simplest approach is the most effective. Here are three industrial dividend-paying companies that have demonstrated a track record of success and are poised to continue delivering strong returns for the next decade.
Defense giant Lockheed Martin has played a critical role in protecting the United States and its allies, supplying advanced air, land, and sea craft, weapons systems, and cutting-edge technology to the U.S. military. As the world’s leading military power, the United States is often drawn into global conflicts, ensuring a steady demand for Lockheed Martin’s products and services. With a dividend payout ratio of just 47% of its estimated 2024 earnings, Lockheed Martin offers a compelling 2.1% starting yield and has delivered 22 consecutive years of dividend growth.
Emerson Electric, a renowned industrial conglomerate, has adapted to changing market conditions by shedding underperforming businesses and acquiring new ones focused on renewable energy, factory automation, and industrial software. This strategic shift has positioned the company for long-term growth, with a dividend payout ratio of only 38% of estimated 2024 earnings and a 1.9% current yield. Emerson’s management team aims to achieve double-digit annualized earnings growth, paving the way for future dividend increases.
Badger Meter, a leader in water flow and quality control, has enjoyed remarkable success, outperforming the S&P 500 index by a significant margin over the past few decades. The company’s products are essential for maintaining and upgrading water infrastructure, a critical need in the United States and worldwide. With a dividend payout ratio of just 33% of estimated 2024 earnings and an average annual dividend increase of 11% over the past decade, Badger Meter offers a promising 0.6% current yield and potential for future growth.
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