In this article, we discuss 5 best industrial dividend stocks to buy now. If you want to read about some more industrial dividend stocks, go directly to 10 Best Industrial Dividend Stocks To Buy Now.
5. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 42
Dividend Yield as of October 13: 2.38%
Honeywell International Inc. (NASDAQ:HON) operates as a diversified technology and manufacturing company worldwide. It is one of the best industrial stocks to invest in. The firm has an impressive dividend history. It has consistently paid a dividend to shareholders for close to two decades. These payouts have registered consecutive growth in the past eleven years. On September 30, the company declared a quarterly dividend of $1.03 per share, an increase of 5.1% from the previous dividend of $0.98 per share.
On July 29, JPMorgan analyst Stephen Tusa maintained an Overweight rating on Honeywell International Inc. (NASDAQ:HON) stock and raised the price target to $190 from $180, noting that the company posted a solid Q2 beat.
At the end of the second quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Honeywell International Inc. (NASDAQ:HON), compared to 50 in the previous quarter worth $1.76 billion.
In its Q3 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Honeywell International Inc. (NASDAQ:HON) was one of them. Here is what the fund said:
“The largest exited positions were Oracle, which outperformed significantly, and Texas Instruments and Honeywell International Inc. (NASDAQ:HON), which were roughly flat versus the market in the quarter but were edged out for inclusion by other stocks that became even more attractively valued.”
4. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 45
Dividend Yield as of October 13: 2.67%
Caterpillar Inc. (NYSE:CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. It is one of the top industrial stocks to invest in. On September 30, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Caterpillar Inc. (NYSE:CAT) stock and lowered the price target to $266 from $282, noting that the company’s yearly target still represents a potential total return with dividends of over 60% from current levels.
At the end of the second quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Caterpillar Inc. (NYSE:CAT), compared to 54 in the previous quarter worth $4 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Caterpillar Inc. (NYSE:CAT) was one of them. Here is what the fund said:
“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”
3. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 54
Dividend Yield as of October 13: 5.47%
3M Company (NYSE:MMM) operates as a diversified technology company worldwide. It is one of the premier industrial stocks to invest in. On August 31, the company announced that it would be eliminating jobs as part of the broader cost cutting drive. The scope of the cutting was not revealed but a senior executive at the firm said that the business cannot avoid this tough necessity.
On September 9, UBS analyst Chris Snyder upgraded 3M Company (NYSE:MMM) stock to Neutral from Sell with a price target of $126, up from $118, highlighting that valuation on the stock now fully accounts for the company’s litigation liability and broader overhang.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and 3M Company (NYSE:MMM) was one of them. Here is what the fund said:
“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.”
2. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 55
Dividend Yield as of October 13: 3.02%
Lockheed Martin Corporation (NYSE:LMT) is a security and aerospace company that engages in the research, design, development, manufacture, integration, and sustainment of defense technology systems worldwide. It is one of the major industrial stocks to invest in. Lockheed Martin Corporation (NYSE:LMT) recently announced that it had been awarded an estimated combined ceiling of $5.1 billion for fixed-price modifications. These modifications exercise options for the production and delivery of sonobuoy capability categories including active/passive combo, multi-static receiver, and testing expenditures.
On October 6, Jefferies analyst Sheila Kahyaoglu kept a Hold rating on Lockheed Martin Corporation (NYSE:LMT) stock and lowered the price target to $450 from $470.
At the end of the second quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $2.6 billion in Centene Corporation (NYSE: CNC), compared to 56 in the previous quarter worth $2.4 billion.
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 65
Dividend Yield as of October 13: 2.71%
Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States. It is one of the elite industrial stocks to invest in. On September 30, Barclays analyst Brandon Oglenski kept an Overweight rating on the Union Pacific Corporation (NYSE:UNP) stock and lowered the price target to $235 from $255, highlighting the robust earnings of the firm in the ratings update.
At the end of the second quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in Union Pacific Corporation (NYSE:UNP), compared to 89 the preceding quarter worth $7 billion.
In its Q2 2022 investor letter, Diamond Hill Capital Management, an asset management firm, highlighted a few stocks and Union Pacific Corporation (NYSE:UNP) was one of them. Here is what the fund said:
“Union Pacific Corporation (NYSE:UNP) is a large railroad company that carries freight across the western US and between Canada and Mexico. It transports a variety of industrial goods, raw materials and containerized freight between major US ports, industrial hubs and international gateways. The goods that Union Pacific and other railroads transport are fundamental inputs in the economy and are resilient to long-term trends in the business cycle. We believe Union Pacific offers a compelling investment opportunity as its substantial infrastructure investments, relative cost advantages, limited leverage and the essential nature of the products it delivers provides the company with what we believe is one of the widest moats in the transportation sector. We also like that Union Pacific has a shareholder-oriented management team that is focused on growing earnings while returning capital to shareholders.”
You can also take a peek at 10 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners and Top 10 Tech Stocks to Buy According to Billionaire Louis Bacon.
