Dover Corp (DOV), Illinois Tool Works Inc. (ITW): Why These Great Industrial Stocks Should Be In Your Portfolio

Remember: Boring is good

The industrials sector contains so many great businesses that have enriched their shareholders over the past several decades. Companies within the industrial sector certainly don’t have exciting businesses. They aren’t likely to be featured in the financial media as the next major growth story.

At the same time, they provide necessary functions to our society. They manufacture and distribute real, tangible things that contribute heavily to the economy.

This kind of staying power is exactly what has enabled Dover Corp (NYSE:DOV), Illinois Tool Works Inc. (NYSE:ITW), and 3M Co (NYSE:MMM) to deliver quarterly dividends, year in and year out, for decades on end.  And making things even better is the fact that these stocks are still reasonably valued.  Each trades at or below the market multiple of earnings, so further capital gains are still a possibility, in addition to compelling income.

If you’re an investor who focuses on cold hard cash instead of flash-in-the-pan ideas, these boring old industrials may be just what you need to provide your portfolio with a dose of highly rewarding reality.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends 3M and Illinois Tool Works.

The article Why These Great Industrial Stocks Should Be In Your Portfolio originally appeared on Fool.com.

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