nVent Electric (NYSE:NVT), specialty chemicals distributor
Univar Solutions (NYSE:UNVR), and painting and coatings company
Axalta Coating Solutions (NYSE:AXTA) are all excellent stocks for value-orientated investors. Here s why.
nVent Electric
The company is not a household name among investors, but that doesn t mean it s a bad investment. The case for buying the stock rests on its products critical nature and its customers expanding their spending.
nVent is a leader in connection and protection. The company operates out of three segments. The enclosures segment (around 48% of revenue) connects and protects electronics, communication, and power equipment. The second-largest segment is electrical and fastening solutions (28%) for electrical and mechanical systems. The third, thermal management (24%), provides electric thermal solutions for critical buildings and infrastructure.
Process automation and climate control and tools company
Emerson Electric (NYSE:EMR), power management company
Eaton (NYSE:ETN), and electrical products manufacturer
nVent Electric (NYSE:NVT) are excellent options for dividend hunters. Here s why these three industrial stocks are safe bets right now.
Image source: Getty Images.
1. Emerson Electric
The case for Emerson Electric is based on the idea that its mix of process automation (the process of managing the flow of raw materials into a refined product) with climate controls and tools allows it to generate earnings throughout the business cycle. That s certainly been the case historically, and as you can see below, all three companies are currently generating significant amounts of free cash flow (FCF). Their dividends are very well covered.
Author Bio
Daniel has been writing for Fool.com since 2019. A fan of value and dividend stocks, he covers the industrial sector, oil and gas, and renewable energy. He graduated summa cum laude from the University of Houston with a BBA in finance and marketing and a certificate in personal financial planning.
Glancing at the headline numbers, the stock market seems to be doing well. The
S&P 500 is up over 10% for the year and the
Dow Jones Industrial Average just hit a new intraday high above 35,000. Yet at the same time, last year s market leaders (small-cap tech stocks) are vastly underperforming the market. Cathie Wood s