Manufacturing powerhouses paying reliable dividends. Benefit from infrastructure spending and global growth while earning 2-4% yields.
Construction equipment leader | 30 years of increases
Market Cap
$160B
Div History
30 years
Payout Ratio
35%
Div Growth
7%/yr
World's largest construction equipment manufacturer. Yellow machines dominate mining, construction, and infrastructure worldwide. 30 years of dividend increases. Huge beneficiary of U.S. infrastructure bill and global mining demand. Services business (parts/maintenance) provides 30%+ margins and recurring revenue. Lower yield but fastest dividend growth in industrials. Best pick for growth investors.
Diversified manufacturer | Dividend aristocrat
Market Cap
$65B
Div History
65 years
Products
60,000+
Countries
200
Makes 60,000+ products from Post-it Notes to N95 masks. 65 consecutive years of dividend increases (aristocrat). High yield reflects legal challenges over PFAS chemicals and hearing protection. Company spinning off healthcare division to focus on core manufacturing. Turnaround opportunity with 5.8% yield—highest in industrials. Higher risk but potential for capital appreciation plus income.
Aerospace & automation | Premium quality
Diversified conglomerate in aerospace (60% of profit), building technologies, performance materials, and safety products. 14 consecutive years of dividend increases. Benefits from commercial aerospace recovery post-pandemic. Warehouse automation business growing rapidly (e-commerce tailwind). Premium quality with consistent 20%+ operating margins. Best-run company in industrials.
| Stock | Yield | Focus | Years |
|---|---|---|---|
| Caterpillar (CAT) | 1.9% | Construction Equipment | 30 |
| 3M Company (MMM) | 5.8% | Diversified Mfg | 65 |
| Honeywell (HON) | 2.1% | Aerospace/Auto | 14 |
| Lockheed Martin (LMT) | 2.6% | Defense | 21 |
| Raytheon (RTX) | 2.3% | Defense/Aerospace | 19 |
| General Dynamics (GD) | 2.2% | Defense | 32 |
| Emerson Electric (EMR) | 2.0% | Automation | 67 |
| Illinois Tool Works (ITW) | 2.3% | Diversified Mfg | 61 |
Heavy equipment manufacturers. Examples: CAT, Deere (DE)
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Aircraft parts and military contractors. Examples: HON, LMT, RTX
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Multi-industry conglomerates. Examples: 3M, ITW, EMR
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Earnings fluctuate with economic cycles. Profit when economy expands, suffer in recessions.
Examples:
Best For:
Growth investors who can handle volatility. Buy during recessions when yields spike.
More stable earnings through cycles. Government contracts or essential products.
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Best For:
Income investors wanting stability. Dividends safer through recessions.
$30K investment | 2.6% average yield
Portfolio Stats:
Annual Income
$780
Avg Yield
2.6%
Expected Growth
6-8%/yr