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10 Industrial Dividend Stocks with Over 3% Yield

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·11 min read
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In this article, we will be taking a look at 10 industrial dividend stocks with over 3% yield. To skip our detailed analysis of these stocks, you can go directly to see the 5 Industrial Dividend Stocks with Over 3% Yield.

The first quarter of 2021 proved to be marginally better in terms of the performance of the global economy as a whole, as compared to, say, the year of 2020. The main reason for this lies in the fact that vaccine production and distribution rapidly accelerated come 2021. This alongside a range of factors like the existence of fiscal stimulus packages and the return to the old normal with the reopening of business and other establishments all resulted in more economic growth in the first half of 2021.

The evidence for this claim lies in the increased real gross domestic product (GDP) in Q1 of 2021, which a Colliers report on US Industrial Market Outlook for 2021 has reported to have hit an annual rate of 6.4%. Comparatively, the GDP growth in the US in the fourth quarter of 2020 was much lower at 4.3%, showcasing the impressive improvement the economy has undergone between 2020 and 2021, with economists now going so far as to predict that US GDP growth may very well surpass that of China's in 2021. And as the economy continues to improve, investor confidence in the stock market begins to be restored as well, with major stocks like the Colgate-Palmolive Company (NYSE: CL), JPMorgan Chase & Co. (NYSE: JPM), AT&T Inc. (NYSE: T), and Chevron Corporation (NYSE: CVX) taking the stage once again.

The industrials sector is no loser in the race of economic growth, by any means, either. The sector has managed to remain active and grow during 2021. For instance, it's been estimated that the US is currently leading the way as far as development and growth of the industrials sector is concerned. About 26 million square feet of construction was completed in the first quarter alone, with 137.7 million square feet also been under construction to date.

Colliers has also estimated that vacancy rates in industrial market properties fell by about 34 basis points in Q1 as compared to the fourth quarter of 2020, showing the consistent activity and assured growth of the sector in the US. Finally, it has also been claimed that with demand in the industrial sector reaching all time highs by the end of the first quarter, it can be safely expected that activity in the sector will remain stable and dependable for the next 12-18 months.

Finally, as far as investor sentiment is concerned, a report by Marcus & Millichap on 2021 US Industrial Outlook has explained how investors are beginning to consider industrials as a more viable investment option particularly in light of the fact that demand in the sector is rising as more retailers, merchants, wholesalers, and logistics firms continue to expand business in 2021. Rising demand for industrial spaces recorded especially during the pandemic in the year of 2021 has resulted in the expansion of, or the possibility of the expansion of, the "industrial buyer pool." Colliers has also estimated that about 80% of industrial investment activity can be attributed to warehouse and distribution facilities, with investors becoming more interested in distribution and acquisitions.

Photo by Ant Rozetsky on Unsplash

Despite the robust growth of the industrial sector in 2021, the entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Without further ado, let's look at 10 industrial dividend stocks with over 3% yield.

Our Methodology

With Insider Monkey tracking the data of about 866 hedge funds, we have managed to pick stocks that are among the most popular with hedge funds. We have also taken care to only include stocks with dividend yields of 3% and above, going as high as almost 12%, and ranking them from the lowest to the highest dividend yield. Finally, we have selected stocks with mostly positive analysts' ratings and strong fundamentals demonstrating core business strengths.

Industrial Dividend Stocks with Over 3% Yield

10. Steelcase Inc. (NYSE: SCS)

Number of Hedge Fund Holders: 19 Dividend Yield: 3.2%

Steelcase Inc. (NYSE: SCS), an office services and supplies company, manufactures integrated furniture settings, user-centered technology, and interior architectural products for sale in the US and worldwide. The company ranks 10th on our list of industrial dividend stocks with over 3% yield, and works through its Americas, EMEA, and Other segments.

Rudy Yang, an analyst at Berenberg, just this May began covering shares of Steelcase Inc. (NYSE: SCS) with a Buy rating. The analyst also placed a price target on the stock, valued at $17, with Yang commenting that Steelcase Inc. (NYSE: SCS) is a company that has successfully maintained its market share in the world's commercial furniture market for over ten years now.

In the fiscal first quarter of 2022, Steelcase Inc. (NYSE: SCS) had an EPS of -$0.24, beating estimates by $0.06. The company’s revenue was $556.6 million, up 15.29% year over year and also beating estimates by $0.30 million. Steelcase Inc. (NYSE: SCS) has also gained 3.17% in the past 6 months and 9.81% year to date.

By the end of the first quarter of 2021, 19 hedge funds out of the 866 tracked by Insider Monkey held stakes in Steelcase Inc. (NYSE: SCS) worth roughly $127 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $111 million.

Like the Colgate-Palmolive Company (NYSE: CL), JPMorgan Chase & Co. (NYSE: JPM), AT&T Inc. (NYSE: T), and Chevron Corporation (NYSE: CVX), Steelcase Inc. (NYSE: SCS) is a good stock to invest in.

9. HNI Corporation (NYSE: HNI)

Number of Hedge Fund Holders: 12 Dividend Yield: 3.2%

HNI Corporation (NYSE: HNI) is a manufacturer of workplace furnishings and residential building products in the US, Canada, China, Hong Kong, India, Mexico, Dubai, Taiwan, and Singapore. The company ranks 9th on our list of industrial dividend stocks with over 3% yield.

Sidoti analyst Gregory Burns just this March upgraded shares of HNI Corporation (NYSE: HNI) from Neutral to Buy. The analyst also holds a $48 price target on the stock and sees upside for HNI Corporation (NYSE: HNI) in light of recovering demand for furniture.

In the second quarter of 2021, HNI Corporation (NYSE: HNI) had an EPS of $0.40, beating estimates by $0.18. The company’s revenue was $510.45 million, up 22.28% year over year and also beating estimates by $17.02 million. HNI Corporation (NYSE: HNI) has also gained 4.82% in the past 6 months and 16.2% year to date.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in HNI Corporation (NYSE: HNI) worth roughly $44.2 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $30.7 million.

Like the Colgate-Palmolive Company (NYSE: CL), JPMorgan Chase & Co. (NYSE: JPM), AT&T Inc. (NYSE: T), and Chevron Corporation (NYSE: CVX), HNI Corporation (NYSE: HNI) is a good stock to invest in.

8. H&E Equipment Services, Inc. (NASDAQ: HEES)

Number of Hedge Fund Holders: 14 Dividend Yield: 3.4%

H&E Equipment Services, Inc. (NASDAQ: HEES), an integrated equipment services company, ranks 8th on our list of industrial dividend stocks with over 3% yield. The company has five segments, namely Equipment Rentals, New Equipment Sales, Used Equipment Sales, Parts Sales, and Repair and Maintenance Services.

Stifel's Stanley Elliott raised the price target on shares of H&E Equipment Services, Inc. (NASDAQ: HEES) to $37 and still holds a Buy rating on the stock as well.

In the second quarter of 2021, H&E Equipment Services, Inc. (NASDAQ: HEES) had an EPS of $0.43, beating estimates by $0.03. The company’s revenue was $315.76 million, up 13.45% year over year and also beating estimates by $15.05 million. H&E Equipment Services, Inc. (NASDAQ: HEES) has also gained 10.26% in the past 6 months and 17.93% year to date.

By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in H&E Equipment Services, Inc. (NASDAQ: HEES) worth roughly $67.7 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $52.4 million.

Like the Colgate-Palmolive Company (NYSE: CL), JPMorgan Chase & Co. (NYSE: JPM), AT&T Inc. (NYSE: T), and Chevron Corporation (NYSE: CVX), H&E Equipment Services, Inc. (NASDAQ: HEES) is a good stock to invest in.

7. Costamare Inc. (NYSE: CMRE)

Number of Hedge Fund Holders: 12 Dividend Yield: 3.7%

Costamare Inc. (NYSE: CMRE) is a marine company that owns and charters containerships to liner companies across the globe. It ranks 7th on our list of industrial dividend stocks with over 3% yield and as of this June, operated a fleet of about 81 containerships.

This June, Christian Wetherbee, an analyst at Citigroup, raised his price target on shares of Costamare Inc. (NYSE: CMRE) from $12.50 to $14.50. The analyst also reiterated a Buy rating on the stock at the same time.

In the second quarter of 2021, Costamare Inc. (NYSE: CMRE) had an EPS of $0.47, beating estimates by $0.04. The company’s revenue was $162.77 million, up 40.48% year over year and beating the previous quarter's revenue of $124.81 million. Costamare Inc. (NYSE: CMRE) has also gained 27.49% in the past 6 months and 41.61% year to date.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Costamare Inc. (NYSE: CMRE) worth roughly $42.7 million. This is compared to 11 hedge funds in the previous quarter with a total stake value of approximately $45.7 million.

Like the Colgate-Palmolive Company (NYSE: CL), JPMorgan Chase & Co. (NYSE: JPM), AT&T Inc. (NYSE: T), and Chevron Corporation (NYSE: CVX), Costamare Inc. (NYSE: CMRE) is a good stock to invest in.

6. Resources Connection, Inc. (NASDAQ: RGP)

Number of Hedge Fund Holders: 11 Dividend Yield: 3.8%

Resources Connection, Inc. (NASDAQ: RGP), a research and consulting services company operating in the industrials sector, offers a range of consulting services to businesses in North America, Europe, and the Asia Pacific. The company ranks 6th on our list of industrial dividend stocks with over 3% yield.

This July, Resources Connection, Inc. (NASDAQ: RGP) commented that the company would keep eliminating its expenses after the first quarter, which was said to be "another strong" quarter for the company. Resources Connection, Inc. (NASDAQ: RGP) added that its revenue recovered to pre-COVID levels by the fourth quarter of 2020 as well.

In the fiscal fourth quarter of 2021, Resources Connection, Inc. (NASDAQ: RGP) had an EPS of $0.80, beating estimates by $0.58. The company’s revenue was $172.32 million, also beating estimates by $6.63 million. Resources Connection, Inc. (NASDAQ: RGP) has gained 12.82% in the past 6 months and 16.28% year to date.

By the end of the first quarter of 2021, 11 hedge funds out of the 866 tracked by Insider Monkey held stakes in Resources Connection, Inc. (NASDAQ: RGP) worth roughly $34.3 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of approximately $46.6 million.

Like the Colgate-Palmolive Company (NYSE: CL), JPMorgan Chase & Co. (NYSE: JPM), AT&T Inc. (NYSE: T), and Chevron Corporation (NYSE: CVX), Resources Connection, Inc. (NASDAQ: RGP) is a good stock to invest in.

Click to continue reading and see the 5 Industrial Dividend Stocks with Over 3% Yield.

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Disclosure: None. 10 Industrial Dividend Stocks with Over 3% Yield is originally published on Insider Monkey.