Top U.S. Capital Goods Dividend Stocks

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%).

See Full Stock Report

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

View all Risks and Rewards

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%).

See Full Stock Report

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.

View all Risks and Rewards

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

See Full Stock Report

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.

View all Risks and Rewards

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%).

See Full Stock Report

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

View all Risks and Rewards

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

See Full Stock Report

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

View all Risks and Rewards

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

See Full Stock Report

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.

View all Risks and Rewards

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

See Full Stock Report

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.

View all Risks and Rewards

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

See Full Stock Report

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

View all Risks and Rewards
Page 1 of 2