17 Industrial Dividend Stocks With Strong Expected Earnings Growth

 | Feb 12, 2013 05:15AM ET

The industrial sector has a total market capitalization of USD 73.1 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 into which investors have put their money within recent months. The entire sector is up 12.8 percent on a 3-month basis and 16.6 percent over the recent half-year.

In 2009, I bought shares of General Electric (GE) when they started to struggle with financing problems fkor their 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.

Today I'd like to highlight you some other dividend stocks from this sector with expected earnings growth over 10 percent. Below is a small list of the best yielding stocks with a market capitalization over USD 10 billion. 14 of the results are currently recommended to buy.

General Electric (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.