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.
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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.
Basic materials companies are the unsung heroes of an economic recovery. While vulnerable to times of slowing growth, many of these companies are first in line to benefit from rising industrial production. Demand for everything from chemicals, to plastics, to metals and minerals is rising. And that makes the materials sector worth a look.
Author Bio
Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog.
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The U.S. economy may technically be out of the COVID-19-induced recession (in strict terms, the period of time from the last peak of economic activity to the worst of the downturn) but a long road to full recovery lies ahead. A new era of digital-based operations is emerging, but even some of the companies helping with this digital transformation aren t yet free from the effects of the pandemic.