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Top U.S. Capital Goods Dividend Stocks
UPDATED Jun 24, 2022
What are the best U.S. Capital Goods Dividend Stocks?
According to our Simply Wall St analysis these are the best U.S. Capital Goods dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
9 companies meet this criteria in the U.S. market
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: PH's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Rewards
Trading at 49.5% below our estimate of its fair value
Earnings are forecast to grow 15.72% per year
Earnings have grown 12.4% per year over the past 5 years
Risks
Has a high level of debt
AZZ Inc. offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: AZZ's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Rewards
Trading at 83.4% below our estimate of its fair value
Earnings are forecast to grow 4.86% per year
Earnings grew by 112.1% over the past year
Risks
No risks detected for AZZ from our risks checks.
The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: GRC's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Future Dividend Coverage
Rewards
Trading at 31.7% below our estimate of its fair value
Earnings are forecast to grow 27% per year
Earnings have grown 0.3% per year over the past 5 years
Risks
No risks detected for GRC from our risks checks.
Regal Rexnord Corporation, together with its subsidiaries, designs, manufactures, and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: RRX's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Rewards
Trading at 61.1% below our estimate of its fair value
Earnings are forecast to grow 44.56% per year
Earnings have grown 1.4% per year over the past 5 years
Risks
Shareholders have been substantially diluted in the past year
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally.
Dividend Criteria
Stable Dividend
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FLS's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Earnings Coverage
Rewards
Trading at 47.1% below our estimate of its fair value
Earnings are forecast to grow 54.24% per year
Risks
Large one-off items impacting financial results
Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: TNC's dividend (1.68%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Future Dividend Coverage
Rewards
Trading at 33.3% below our estimate of its fair value
Earnings are forecast to grow 23.23% per year
Risks
No risks detected for TNC from our risks checks.
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the power generation and renewable energy markets.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: AGX's dividend (2.61%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Future Dividend Coverage
Rewards
Trading at 12.4% below our estimate of its fair value
Earnings are forecast to grow 27.26% per year
Risks
No risks detected for AGX from our risks checks.
Standex International Corporation, together with subsidiaries, manufactures and sells various products and services for commercial and industrial markets in the United States and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: SXI's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Future Dividend Coverage
Rewards
Trading at 65.8% below our estimate of its fair value
Earnings are forecast to grow 20.12% per year
Earnings grew by 107.5% over the past year
Risks
Significant insider selling over the past 3 months