My Favorite Industrial Dividend Stocks With Low Forward P/E

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May 11, 2013
The cheapest large cap industrial dividend stocks, measured by the lowest forward P/E, are valuated between 8.27 and 14.08. Sixteen of the 20 cheapest industrial stocks have a current buy or better rating.

Industrials are more cyclic by nature but they can give you a boost to your portfolio, especially when the economy is in a rush. My favorite buying sector is still the consumer sector. I love consumer stocks because of the high margins and strong consumer loyalty which results in relative robust sales. Consumer stocks are the subject of my analysis within the next week.

Here are my favorite stocks:

General Dynamics (GD) has a market capitalization of $26.74 billion. The company employs 92,200 people, generates revenue of $31.513 billion and has a negative net income of - $332 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.447 billion. The EBITDA margin is 10.94% (the operating margin is 2.64% and the net profit margin -1.05%).

Financial Analysis: The total debt represents 11.39% of the company’s assets and the total debt in relation to the equity amounts to 34.31%. Due to the financial situation, a return on equity of -2.70% was realized. Twelve trailing months earnings per share reached a value of - $0.98. Last fiscal year, the company paid $2.04 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.84 and the P/B ratio is 2.34. The dividend yield amounts to 2.98% and the beta ratio has a value of 1.22.

Dover Corporation (DOV) has a market capitalization of $12.66 billion. The company employs 35,000 people, generates revenue of $8.104 billion and has a net income of $833.12 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.798 billion. The EBITDA margin is 22.19% (the operating margin is 15.61% and the net profit margin is 10.28%).

Financial Analysis: The total debt represents 26.81% of the company’s assets and the total debt in relation to the equity amounts to 56.92%. Due to the financial situation, a return on equity of 16.92% was realized. Twelve trailing months earnings per share reached a value of $4.73. Last fiscal year, the company paid $1.33 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.65, the P/S ratio is 1.55 and the P/B ratio is 2.60. The dividend yield amounts to 1.91% and the beta ratio has a value of 1.34.

United Technologies Corp. (UTX) has a market capitalization of $87.31 billion. The company employs 218,000 people, generates revenue of $57.708 billion and has a net income of $5.20 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.508 billion. The EBITDA margin is 16.48% (the operating margin is 13.32% and the net profit margin is 9.01%).

Financial Analysis: The total debt represents 25.97 percent of the company’s assets and the total debt in relation to the equity amounts to 89.61 percent. Due to the financial situation, a return on equity of 20.25 percent was realized. Twelve trailing months earnings per share reached a value of $5.41. Last fiscal year, the company paid $2.03 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.59, the P/S ratio is 1.51 and the P/B ratio is 3.36. The dividend yield amounts to 2.26% and the beta ratio has a value of 1.06.

Take a closer look at the full list of the cheapest industrial dividend stocks. The average P/E ratio amounts to 16.11 and the forward P/E ratio is 12.01. The dividend yield has a value of 2.53%. Price to book ratio is 2.98 and the price to sales ratio is1.06. The operating margin amounts to 9.53% and the beta ratio is 1.45. Stocks from the list have an average debt to equity ratio of 2.04.

Dividend stocks from the industrial sector with very low forward P/E ratios originally published at "long-term-investments.blogspot.com."

Related stock ticker symbols:

CNH, DE, NOC, GD, SI, CAT, LMT, RTN, CMI, ETN, DOV, GE, SWK, PH, CRH, BA, FLR, IR, UTX, HON

Selected Articles:

· 16 Of The Best Dividend Paying Industrials With Strong Growth And Low Debt Ratios

· The Best Yielding Large Cap Industrial Stocks

· Industrial Dividend Stocks With Gaining Earnings Growth Momentum

· The Best Industrial Dividend Stocks 2012

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