20 Best Dividend Paying Stocks From The Industrial Sector

 | Nov 18, 2012 02:30AM ET

Dividend Paying stocks are one of my most wanted stocks. If they have a long payment history, my trust in future dividend increases and stable payouts is much higher vs stocks with an irregular payment history. Today, I'm going to focus on dividend stocks from the industrial sector.

There are many industrial goods companies with a buy or better rating and most of them also pay good dividends. I've screened for the twenty best yielding stocks from the sector with a higher market capitalization (over USD 2 billion). Among the results are many well known industrials such as Lockheed Martin, Raytheon, Waste Management or even the cement producer CRH. Half of the results are currently recommended to buy.

Raytheon Company (NYSE:RTN) has a market capitalization of $17.81 billion. The company employs 71,000 people, generates revenue of $24.857 billion and has a net income of $1.897 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.304 billion. The EBITDA margin is 13.29 percent (the operating margin is 11.49 percent and the net profit margin 7.63 percent).

Financial Analysis: The total debt represents 17.81 percent of the company’s assets and the total debt in relation to the equity amounts to 56.29 percent. Due to the financial situation, a return on equity of 20.82 percent was realized. Twelve trailing months earnings per share reached a value of $5.83. Last fiscal year, the company paid $1.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.27, the P/S ratio is 0.72 and the P/B ratio is finally 2.24. The dividend yield amounts to 3.70 percent and the beta ratio has a value of 0.71.