13 Industrial Dividend Stocks with Gaining Earnings Growth Momentum

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Apr 16, 2012
Industrial Dividend Stocks With Accelerated Growth Researched ByDividend yield - Stock, Capital, Investment. Industrials are very cyclic and they are an early indicator for the health of the economy. Within the recent years, the sector realized a good recovery from the financial crises but the market cycle doesn’t seem to be ended.


In order to find some opportunities from the industrial sector, I screened stocks with an earnings growth of more than 10% over the past five years. In order to catch up only stocks with a gaining earnings momentum, I observed only those stocks with a quarter-over-quarter sales and earnings per share growth of more than 15%. Exactly 13 companies fulfilled these criteria of which two have a yield over 3%.


Here are my favorite stocks:


ABB (ABB, Financial) has a market capitalization of $44.32 billion. The company employs 133,600 people, generates revenues of $37,990.00 million and has a net income of $3,306.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,670.00 million. Because of these figures, the EBITDA margin is 14.92% (operating margin 12.28% and the net profit margin finally 8.70%).


The total debt representing 10.08% of the company’s assets and the total debt in relation to the equity amounts to 25.33%. Due to the financial situation, a return on equity of 20.61% was realized. Twelve trailing months earnings per share reached a value of $1.38. Last fiscal year, the company paid $0.72 in form of dividends to shareholders. Sales increased 15.17% quarter over quarter and earnings per share were 15.51%.


Elbit Systems (ESLT, Financial) has a market capitalization of $1.60 billion. The company employs 12,545 people, generates revenues of $2,817.46 million and has a net income of $90.38 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $266.28 million. Because of these figures, the EBITDA margin is 9.45% (operating margin 4.11% and the net profit margin finally 3.21%).


The total debt representing 17.96% of the company’s assets and the total debt in relation to the equity amounts to 74.38%. Due to the financial situation, a return on equity of 11.40% was realized. Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, the company paid $1.44 in form of dividends to shareholders. Sales increased 41.44% quarter over quarter and earnings per share 37.52%.


Here are the price ratios of the company: The P/E ratio is 15.37, P/S ratio 0.57 and P/B ratio 1.78. Dividend yield: 3.20%. The beta ratio is 0.90.


Cummins (CMI, Financial) has a market capitalization of $21.91 billion. The company employs 43,900 people, generates revenues of $18,048.00 million and has a net income of $1,946.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,586.00 million. Because of these figures, the EBITDA margin is 14.33% (operating margin 14.85% and the net profit margin finally 10.78%).


The total debt representing 5.88% of the company’s assets and the total debt in relation to the equity amounts to 12.49%. Due to the financial situation, a return on equity of 36.37% was realized. Twelve trailing months earnings per share reached a value of $9.55. Last fiscal year, the company paid $1.32 in form of dividends to shareholders. Sales increased 18.89% quarter over quarter and earnings per share 55.25%.


Here are the price ratios of the company: The P/E ratio is 11.93, P/S ratio 1.21 and P/B ratio 3.99. Dividend yield: 1.40%. The beta ratio is 1.96.


Take a closer look at the full table of industrial dividend stocks with accelerated growth. The average P/E ratio amounts to 17.16 and the forward P/E ratio is 12.08. The dividend yield has a value of 1.64%. Price to book ratio is 4.16 and price to sales ratio 1.40. The operating margin amounts to 12.61%. Sales increased 23.75% compared to the figures from the same quarter last year (8.21% five-year average) and the earnings per share grew 55.92% quarter over quarter (17.03% five-year average).


Related stock ticker symbols:

ABB, ESLT, XIN, BA, TKR, CMI, FAST, FLR, JOY, GR, RYL, VMI, GDI


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