The Best Yielding Large Cap Industrial Stocks

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May 16, 2012
It’s very important to know what yields are traded within a sector or industry in order to compare risks and premiums. I made a screen of the best yielding large capitalized industrial goods stocks. 28 companies from the sector have a market capitalization over USD10 billion of which 27 pay dividends and 17 have a yield of more than 2 percent.


Below the results are no high yields. The best yielding stock is the cement producer CRH (CRH, Financial) with a yield of 4.79 percent. The aerospace and defense industry is the most represented industry within the screen.


Here are my favorite stocks:


General Electric (GE, Financial) has a market capitalization of $194.81 billion. The company employs 301,000 people, generates revenues of $147,300.00 million and has a net income of $14,366.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31,015.00 million. Because of these figures, the EBITDA margin is 21.06 percent (operating margin 13.64 percent and the net profit margin finally 9.75 percent).


Financial Analysis: The total debt representing 63.22 percent of the company’s assets and the total debt in relation to the equity amounts to 389.43 percent. Due to the financial situation, a return on equity of 11.06 percent was realized. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, the company paid $0.61 in form of dividends to shareholders.


Market Valuation


Here are the price ratios of the company: The P/E ratio is 15.05, P/S ratio is 1.34 and P/B ratio is 1.69. Dividend yield: 3.66 percent. The beta ratio: 1.60.


Illinois Tool Works (ITW, Financial) has a market capitalization of $26.43 billion. The company employs 65,000 people, generates revenues of $17,786.58 million and has a net income of $2,017.01 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,320.68 million. Because of these figures, the EBITDA margin is 18.67 percent (operating margin 15.35 percent and the net profit margin finally 11.34 percent).


Financial Analysis: The total debt representing 22.19 percent of the company’s assets and the total debt in relation to the equity amounts to 39.83 percent. Due to the financial situation, a return on equity of 20.60 percent was realized. Twelve trailing months earnings per share reached a value of $3.84. Last fiscal year, the company paid $1.40 in form of dividends to shareholders.


Market Valuation


Here are the price ratios of the company: The P/E ratio is 14.43, P/S ratio is 1.50 and P/B ratio is 2.69. Dividend yield: 2.58 percent. The beta ratio: 1.18.


Deere & Company (DE) has a market capitalization of $30.79 billion. The company employs 61,300 people, generates revenues of $32,012.50 million and has a net income of $2,799.20 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,903.20 million. Because of these figures, the EBITDA margin is 18.44 percent (operating margin 13.19 percent and the net profit margin finally 8.74 percent).


Financial Analysis: The total debt representing 55.16 percent of the company’s assets and the total debt in relation to the equity amounts to 391.01 percent. Due to the financial situation, a return on equity of 42.76 percent was realized. Twelve trailing months earnings per share reached a value of $6.73. Last fiscal year, the company paid $1.52 in form of dividends to shareholders.


Market Valuation


Here are the price ratios of the company: The P/E ratio is 11.39, P/S ratio is 0.97 and P/B ratio is 4.62. Dividend yield: 2.38 percent. The beta ratio: 1.52.


General Dynamics (GD, Financial) has a market capitalization of $23.69 billion. The company employs 89,800 people, generates revenues of $32,677.00 million and has a net income of $2,552.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,418.00 million. Because of these figures, the EBITDA margin is 13.52 percent (operating margin 11.71 percent and the net profit margin finally 7.81 percent).


Financial Analysis: The total debt representing 11.27 percent of the company’s assets and the total debt in relation to the equity amounts to 29.70 percent. Due to the financial situation, a return on equity of 19.23 percent was realized. Twelve trailing months earnings per share reached a value of $6.87. Last fiscal year, the company paid $1.88 in form of dividends to shareholders.


Market Valuation


Here are the price ratios of the company: The P/E ratio is 9.56, P/S ratio is 0.73 and P/B ratio is 1.79. Dividend yield: 3.08 percent. The beta ratio: 1.25.


Take a closer look at the full table of the best yielding industrial goods stocks. The average P/E ratio amounts to 13.48 and forward P/E ratio is 10.63. The dividend yield has a value of 3.21 percent. Price to book ratio is 3.88 and price to sales ratio 1.02. The operating margin amounts to 11.40 percent.


Related stock ticker symbols:

CRH, LMT, WM, RTN, GE, ETN, EMR, NOC, GD, ABB, ITW, HON, BA, SWK, DE, ROK, DOV


Selected Articles:

· Industrial Dividend Stocks With Gaining Earnings Growth Momentum

· The Best Industrial Dividend Stocks 2012

· 9 Fastest Growing Industrial Stocks With Best Yields

· 15 Industrial Dividend Stocks With Buy Or Better Rating