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7 Best Dividend Stocks To Buy And Hold: Industrials And Materials

Published Thu, 04 Jul 2019 08:32:17 -0400 on Seeking Alpha

Introduction Dividend stocks are one of the key components of a value investor's portfolio. The regular income provides increasing liquidity and compensation as you wait for the valuation thesis to play out. Typically, dividends tend to be a bonus as most value investing screens are run for valuation first. However, I also like to look at strong dividend stocks and then filter for undervaluation. These do not always offer strongest value stocks, but these will help protect your portfolio by including quality names that can weather a stock market downturn as I do expect to arrive anytime soon.
Screen Details This screen looks for quality stocks that pay a great dividend and are reasonably undervalued. The quality is determined by several dividend policy attributes, such as dividend yield, historical dividend growth rate, and the sustainability of the dividend as evidenced by the dividend coverage. A Price/Earnings ratio check keeps the valuation to be reasonable.
Market capitalization > $30 million
Dividend yield in top 20% of the market
Dividend growth rate in top 40% of the market
Dividend coverage in top 60% of the market
P/E ratio < 15
Sector is Industrials or Materials
The screen was run using the Fidelity screener.
A great sustainable dividend yield, potential of dividend growth and good valuation allows you to buy and hold these stocks for a reasonably long term.
The Screen Results STOCK
DIV... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AIRCASTLE 22.99   8.6 2.68 1.20 5.34
LYONDELLBASELL INDUSTRIES 83.78   8.8 9.53 4.20 4.94
CUMMINS 165.05   10.1 16.38 5.24 3.20
CATERPILLAR 131.75   12.3 10.74 4.12 3.16
MANPOWER 85.31   10.7 7.96 2.18 2.51
SNAP-ON 162.86   13.2 12.32 3.80 2.40


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