Discord server suggested that i run a series of polls to let people vote on their favorite stocks across each of the 11 sectors, and so far hundreds of votes have been cast and in this video i’m going to reveal the winners for the top five industrial dividend. Stocks and then at the end of this video i’ll share a valuable story. So please watch this from start to end for context to run a free dividend. Discord chat, server, which is listed in the description of this video and which comes up when you type world’s largest dividend discord or just dividend discord on google and, as my normal disclaimer, just consider this entertainment and not financial advice. Please consider hitting the thumbs up button. Subscribing if you haven’t and click that bell notification thanks, i really appreciate your support. Okay stock time for reference, the sectors are energy materials, industrials, consumer, discretionary, consumer, staples health care, financials information, technology, communication services, utilities and real estate. Let’S look at how the industrial sector as a whole has been doing the last five years compared to other sectors into the s p. 500. We see that the s p 500 has returned about 102, whereas the industrial sector has been underperforming returning 83. Over the same time frame, the worst sector has been energy at minus 18 and the best has been tech at 227 percent. Odd wager in the medium term, oil will continue to rebound assuming the vaccines work.
So what are industrials? Well? The global industry classification standards taxonomy shows us that it includes companies involved with aerospace and defense, construction, machinery and airlines and railroads amongst others. If you want to invest in the industrial sector as a whole, you could consider ticker xli, which is the industrial select sector, spider fund or, if you’re, a vanguard fan. You could consider vis, which is vanguard’s. Industrials etf industrials represents about eight percent of the s. P. 500 using dividend channels, total returns, drip calculator. We see that if you had invested about 22 years ago, when xli was formed, then you would have seen an 8.08 annualized return which slightly beats by 7.17. Okay let’s jump into the poll results. I’Ll give you a rundown of the top five and then before i get to number one i’ll share some honorable mentions that were like, but not enough to crack the top five. Now in my top five tech dividend, socks video, i showed a variety of ways. You could break down the top stocks, for example, by value or my best returns or by highest income. But when i looked at my analytics, it seems short and tight was preferred. I get that short and tight is what i’ve always liked too. Okay, the fifth most popular industrial stock in the poll with 12 of voters, is general dynamics. Particular gd, the fifth largest defense contractor in the u.s general dynamics, says the consensus. Analyst rating of a hold has an incredible 28 consecutive years of dividend, increases making them an aristocrat has a great 38 payout ratio.
A relatively low 2.87 percent yield a great 10.34 three year: dividend calgary and a nice 13.9 p e in the last 25 years. General dynamics has had an amazing 12.69 annualized return, which is more than spy, which had a 9.64 return over the same time period let’s see what their stock has done in the last 12 months. General dynamics is trading around 153 dollars a share below the 50 week. High of about 190 and above their 52 week low of about a hundred dollars, so the pandemic hurt them, but they have partially recovered and are going in the right direction. Let’S see how their stock price looks over a longer period of time. Overall it’s a nice trend, let’s look at their dividend payouts beautiful, which is what we’d expect given their kagger, how about their yield trend, so their yield trend? Doesn’T show too much movement, which can mean it’s not getting more or less compelling over time to enter the stock when you’re. Looking at this metric in isolation, let’s take a look at their earnings per share. General dynamics is a nice strong, eps trend i’d like to see how about their shares outstanding beautiful. We see that management is doing a nice job. Returning value to shareholders, let’s check out how their assets are trending as compared to their liabilities. Decent we see assets are growing and pace with liabilities, let’s see how their revenue growth looks. We see a nice positive trend up now, let’s check out their net income we’ve, seen improving trend over time.
Let’S, look at the price to free cash flow ratios where you normally want to invest in companies that have higher improving free cash flow, but low share prices. Of course, if you’re already a shareholder, then you want both free cash flow and share prices to rise. Low price to free cash flow ratios can mean a stock is undervalued. So what we see is not too compelling let’s check out their debt. We see some increasing debt, but still a seemingly manageable amount. Okay, let’s move on the fourth most popular industrial stock. In the poll with 13 of voters is lockheed. Martin ticker lmt lockheed martin is one of the largest companies in the aerospace military support security and defense. Contractor space lockheed martin has a consensus analysis. Rating of a buy has a nice 18 consecutive years of dividend, increases a great 41 payout ratio and okay, 3.05 percent yield a great nine point: nine six percent three year dividend cagger and a good 14.7 pe. In the last 25 years, lockheed martin has had an amazing 12.43 annualized return, which is significantly more than spy, which has had a 9.64 return over the same time period let’s see what their stock has done in the last 12 months. Lockheed martin is trading around 342 dollars, a share below the 50 week high of about 443 and above their 52 week low of about 266 dollars, so they have not yet recovered from the pandemic. Let’S see how their stock trend looks over a longer period of time.
Lockheed martin has been rocking let’s look at their dividend payouts awesome what we’d anticipate given their dividend: history? How about the yield trend? So we see that the stock price is rising faster than their dividend, so perhaps less compelling for a new shareholder to take a position when looking at this metric in isolation, let’s take a look at their earnings per share. Lockheed martin has an even stronger eps trend line than general dynamics. How about their shares outstanding beautiful? We see that management is doing a nice job returning value to shareholders, let’s check how their assets are trending as compared to their liabilities. So i don’t like what i see here with an occasional liabilities higher than assets, though things are looking better. Most recently let’s see how their revenue growth looks, a decent trend, let’s check out their net income lockheed martin has a nicer trend than general dynamics. Let’S. Take a look at the price to free cash flow trends. Lockheed martin has a pretty compelling low price to free cash flow let’s check out their debt. We see some increasing debt but still reasonably low. Okay. Moving on now, the third most popular industrial stock. In the poll with 16 of voters is honestly a trash stock and, of course, i’m talking about waste management. Waste management has a consensus analysis. Rating of a hold has a great 18 consecutive years of dividend, increases a solid six percent payout ratio. A low two percent yield a solid seven point: seven percent three year, dividend calgary and a high 32.
5 pe. In the last 25 years, waste management has had a solid 9.48 annualized return, which is about the same at spy, which had a 9.64 return. Over the same time, period let’s see what their stock has done in the last 12 months. Waste management is trading around 115 dollars a share below the 50 week high of about 127 and above the 50 week low about 85. So they are almost back to their pre pandemic highs. Let’S see how their stock trend looks over a longer period of time. Waste management stock has been growing nicely. Let’S look at their dividend payouts. We see a solid trend. Line of dividend increases how about their yield trend, so their yield trend shows us that the stock price is rising faster than their dividend, so potentially less compelling to become a new shareholder. When looking at this metric in isolation, let’s take a look at their earnings per share, waste management has an improving eps trend, but not as nice as others how about their shares outstanding. So a nice steady trend line down let’s check how their assets are trending as compared to their liabilities. So it looks decent here with assets growing and liabilities, not growing faster than assets. Let’S see how their revenue growth looks. Waste management has a gradual trend up let’s check out their net income. Here we see a nice trend of increasing profits, let’s look at the price of free cash flow trends.
Waste management has a nice compellingly low price to free cash flow let’s check out their debt. Okay, we see some increasing debt but still reasonably low. Moving on the second most popular industrial stock in the poll with 34 of voters is one of the industrial stocks i own and i’m talking about caterpillar ticker cit, my dad used to work in construction. I remember getting the driver caterpillar around the yard. When i was a kid. Caterpillar has a consensus. Analyst rating of a hold having awesome 26 consecutive years of dividend increases making them an elite. Aristocrat have a good 68 payout ratio. A low 2.12 yield a solid 7.06 percent three year dividend category and a high of 32 pe. In the last 25 years, caterpillar has had an awesome, 12.91 annualized return, which is much better than spy, which had 9.64 return over the same time period let’s see what their stock price has done in the last 12 months, caterpillar is trading around 193 dollars. A share below the 50 week high of about 200 and way above their 52 week low of about 87, so caterpillar has drugged off the pandemic. Let’S see how the stock trend looks over a longer period of time. Cat stock has been growing, but not as aggressively as lockheed martin’s let’s look at their dividend. Payouts cat has a decent dividend trend line, though ever so slightly less aggressive how about their yield trend. So here we see one of the more compelling trends from the perspective of a new potential shareholder seeking entry.
Let’S look at their earnings per share cat is an improving eps trend, but not as nice as the others. How about their shares outstanding? So a nice steady trend line down, though less aggressive than the others let’s check how their assets are trending as compared to their liabilities. So a c cad has the nicest trend line of the bunch with their assets growing faster than their liabilities. Let’S see how their revenue growth looks, cad has a gradually increasing revenue trend, let’s check out their net income. Caterpillar is a slightly increasing trend for net income, but not as much as i’d like to see let’s look at their price to free cash flow trends. Caterpillar is a compelling price to free cash flow let’s check out their debt. Cad has increasing debt, but not too unreasonable. Yet, okay, now before i get to the number one stock in the poll, i’ll share some other industrial stocks that didn’t quite crack. The top five number nine in the list was illinois tool works, ticker, itw number eight in the list was union pacific, ticker, unp number seven. The list was honeywell ticker, hon and number six on the list was raytheon technologies, ticker rtx, some other notable industrial stocks that didn’t crack the top 10 included fedex ups, john deere, boeing, general, electric abm industries, dover corporation emerson, electric nordson, parker, hannifin and stanley black decker. So what’s left well, of course, it’s none other than my favorite industrial stock and that’s 3m ticker mmm, which had 53 of the votes and are a company that has many products.
I love and use my friend ryan, given who has an investing channel? You should check out so i’ll include a link to it in the description below once said, he saw a 3m tweet that wrote. You are never more than 10 feet away from 3m that’d, be pretty incredible. If so, 3ms consensus, analyst rating of a hold, have an incredible 62 consecutive years of dividend, increases making them an elite. King have a good 68 payout ratio. A tasty 3.48 yield a nice 9.06 percent three year, dividend calgary and a decent 19.9 pe. In the last 25 years, 3m has had a good 10.15 annualized return, which is slightly better than spy, which had a 9.64 return over the same time period let’s see what their stock has done in the last 12 months, 3m is trading around 170 dollars. A share below the week high about 182 and above their fifth week low of about 114 dollars, 3m is just getting back to where they were pre pandemic. Let’S see how their stock trend looks over a longer period of time. 3M has a nice trend, though, has fallen off a bit as of late let’s. Look at their dividend. Payouts 3m is probably the nicest dividend payout trendline how about their yield trend, so we can see at 3m stock prices been increasing faster than their dividend. Let’S. Take a look at their earnings per share. 3M is one of the better eps trendline slopes.
How about their shares outstanding 3m is one of the better trends of decreasing shares. Outstanding let’s check how their assets are training as compared to their liabilities. 3M has a decent trend line of assets to liabilities. Let’S see how the revenue growth looks. 3M is probably the nicest revenue trend line of the bunch let’s check out their net income. Again 3m is one of the better trend lines for increasing net income. Let’S. Take a look at their price to free cash flow trends. So 3m has a pretty compelling price of your cash flow. At this point, let’s check out their debt 3m has some increasing debt, but still should be at manageable levels. Okay, folks, there you have it the top five industrial dividend stocks is voted on. My dividend: discord server. Okay, now before i get to the store, i want to share that m1 brokerage has a promotion running until the end of february, where, if you click on my referral link in the description of this video and then open an account and transfer some cash into it And you meet the requirements, then both you and i get a free 30 deposit into our accounts. If you open a normal individual account, you need to transfer in and invest 100 or, if you open a retirement account, it needs to be 500 invested all within 30 days from opening the account. Usually they do 10 referral bonuses so take advantage of the free 30 dollars while it lasts.
Okay. Now i want to tell you an inspirational story based on what i found online, that i think you’ll like there once was a young lazy man who spent hours on the river fishing and daydreaming about being rich. He wondered what the secret was to becoming successful. Instead of working hard to educate himself to start his own business to grow in his career, he wasted his time in his canoe dreaming of winning the lottery one day the young men accidentally slipped out of the canoe and fell into the river. The current was strong and pulled the young man underwater. He fought to survive swimming like his life, depended on it to get back to the surface into air. He made it and collapsed on the shore. He sat there grateful he was alive and then the realization hit him. He had finally learned the secret to success. He understood that once he wanted to gain success as much as he wanted air when he was underwater, he would obtain it that’s the only secret moral of the story. Success starts with the desire to achieve something. If your motivation is weak, your results will follow suit. Think about what you desire the most in life and work towards getting it, don’t, allow your environment or other people to influence the things you truly want. Thank you. So much for watching all the way to the end. Leave me a comment. If you did i’d really appreciate it, please consider hitting the thumbs up button, subscribing if you haven’t yet and click that bell notification.
Also, if you like the graphs in this video and would like to support me in sharing the positive message of dividend, investing then consider signing up as a patreon aristocrat, speaking of which i’d like to shout out my newest aristocrats. So thank you to asadas. Thank you to nomad, thank you to tara terre. Thank you to tx, big bob. Thank you to justin1m and thank you to vlorshad as an aristocrat. They gain access to my new dividend, spreadsheet 2.0 product that it used in this video and to multiple private channels. On my discord, including one where i let people watch my videos before i release them to the public as well as vote on some thumbnails, i use in my videos finally don’t forget to check out my free dividend: discord server. I just added a new beginner’s channel where people can ask any questions in a judgment free zone, and since i have thousands of investors on it, you’ll find all ranges of experienced people that you can rub shoulders with. Thanks and i’ll talk to you again real soon. I am not a financial advisor and these videos are for entertainment, inspiration and educational purposes. Only investing of any kind involves risk.