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My 3 Favorite Safe Heaven Stocks from the Industrial Sector

A diversified portfolio is the basis for a strong stability. The more industries and sectors you cover, the lower the single risk you own. This insurance costs performance because nobody could know in detail which sectors will run good over the next years and which are the big loser.

Today I go forward with my monthly screen of the safest stocks from the major sectors. Industrials are a focus of my research. These are my criteria:

- Market Capitalization over USD10 billion

- Beta ratio below 1

Only eight companies fulfilled these criteria of which five have a current buy or better rating. The number of stocks is very low. It could be related to the fact that the sector has only 360 companies listed and industrials are more cyclic.

Here are my favorite stocks:



Lockheed Martin (LMT)
has a market capitalization of $31.39 billion. The company employs 120,000 people, generates revenue of $47.182 billion and has a net income of $2.745 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.639 billion. The EBITDA margin is 11.95 percent (the operating margin is 9.40 percent and the net profit margin 5.82 percent).

Financial Analysis: The total debt represents 16.32 percent of the company’s assets and the total debt in relation to the equity amounts to 16,174.36 percent. Due to the financial situation, a return on equity of 527.88 percent was realized. Twelve trailing months earnings per share reached a value of $8.37. Last fiscal year, the company paid $4.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.62, the P/S ratio is 0.65 and the P/B ratio is finally 789.99. The dividend yield amounts to 4.79 percent and the beta ratio has a value of 0.94.

Fastenal Company (FAST) has a market capitalization of $14.48 billion. The company employs 15,145 people, generates revenue of $3.133 billion and has a net income of $420.54 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $727.74 million. The EBITDA margin is 23.22 percent (the operating margin is 21.50 percent and the net profit margin 13.42 percent).

Financial Analysis: The total debt represents 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 27.86 percent was realized. Twelve trailing months earnings per share reached a value of $1.42. Last fiscal year, the company paid $1.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 34.48, the P/S ratio is 4.65 and the P/B ratio is finally 9.34. The dividend yield amounts to 1.63 percent and the beta ratio has a value of 0.95.

Roper Industries (ROP) has a market capitalization of $12.30 billion. The company employs 9,475 people, generates revenue of $2.993 billion and has a net income of $483.36 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $911.29 million. The EBITDA margin is 30.44 percent (the operating margin is 25.27 percent and the net profit margin 16.15 percent).

Financial Analysis: The total debt represents 28.60 percent of the company’s assets and the total debt in relation to the equity amounts to 54.83 percent. Due to the financial situation, a return on equity of 14.05 percent was realized. Twelve trailing months earnings per share reached a value of $4.85. Last fiscal year, the company paid $0.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.61, the P/S ratio is 4.11 and the P/B ratio is finally 3.33. The dividend yield amounts to 0.53 percent and the beta ratio has a value of 0.79.

Take a closer look at the full list of the safest industrial dividend stocks. The average P/E ratio amounts to 20.90 and forward P/E ratio is 16.66. The dividend yield has a value of 2.14 percent. Price to book ratio is 3.66 and price to sales ratio 2.30. The operating margin amounts to 17.05 percent and the beta ratio is 0.84. Stocks from the list have an average debt to equity ratio of 0.64.

Related stock ticker symbols:

LMT, RTN, WM, RSG, FAST, AME, ROP, DHR

Selected Articles:

· Industrial Dividend Stocks With The Strongest Expected Earnings Growth

· 20 Most Recommended Industrial Dividend Stocks | Top Stock Buy List

· Best Industrial Goods Stock Picks For 2013

· The 20 Best Dividend Paying Stocks From The Industrial Sector

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me onFacebookor Twitter.Industrial dividend stocks with low beta ratios and large market capitalization originally published at long-term-investments.blogspot.com.

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