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What’s the Industrials Sector’s Dividend Yield?

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Industrials industries

The industrials sector has an average dividend yield of 1.7%. Within the industry, the highways and rail tracks segment noted the highest dividend yield. Highways and rail tracks, heavy electrical equipment, business support supplies, industrial conglomerates, and airport services have beaten the broad-based indexes’ dividend yields.

Industries within this sector and the top dividend payer under the respective industry are as follows:

  • highways and rail tracks with a dividend yield of 4.7% and Brookfield Infrastructure Partners (BIP)
  • heavy electrical equipment with a dividend yield of 3.1% and ABB (ABB)
  • business support supplies with a dividend yield of 2.9% and Triton International Limited (TRTN)
  • industrial conglomerates with a dividend yield of 2.8% and General Electric Company (GE)
  • airport services with a dividend yield of 2.5% and Grupo Aeroportuario del Pacífico (PAC)
  • marine freight and logistics with a dividend yield of 2.2% and Seaspan (SSW)
  • air freight and courier services with a dividend yield of 2% and United Parcel Service (UPS)
  • electrical components and equipment with a dividend yield of 1.9% and Kyocera (KYO)
  • employment services with a dividend yield of 1.8% and Paychex (PAYX)
  • aerospace and defense with a dividend yield of 1.7% and Boeing (BA)
  • commercial printing services with a dividend yield of 1.7% and Quad/Graphics (QUAD)
  • heavy machinery and vehicles with a dividend yield of 1.7% and Caterpillar (CAT)
  • environmental services and equipment with a dividend yield of 1.6% and Waste Management (WM)
  • professional information services with a dividend yield of 1.6% and Thomson Reuters (TRI)
  • ground freight and logistics with a dividend yield of 1.5% and Union Pacific (UNP)
  • shipbuilding with a dividend yield of 1.3% and Huntington Ingalls Industries (HII)
  • industrial machinery and equipment with a dividend yield of 1.2% and Ingersoll-Rand (IR)
  • airlines with a dividend yield of 1.1% and China Southern Airlines (ZNH)
  • passenger transportation, ground and sea with a dividend yield of 0.9% and Guangshen Railway (GSH)
  • construction and engineering with a dividend yield of 0.7% and Fluor (FLR)
  • business support services with a dividend yield of 0.5% and Qiwi (QIWI)

Airport services, highways and rail tracks, and marine port services ended in the red on June 1. Marine port services, airport services, highways and rail tracks, industrial conglomerates, heavy electrical equipment, shipbuilding, passenger transportation, ground and sea, construction and engineering, and commercial printing services generated negative six-month returns.

Going forward

Digital and technological innovations, labor efficiencies, and improving economic fundamentals continue to be the driving force for the sector. However, concerns loom in the form of a trade war and rising material costs.

Dividend ETFs

The First Trust Morningstar Dividend Leaders (FDL) offers a dividend yield of 3.4% at a PE of 19.9x. It has 18% and 9% exposure to energy and industrials, respectively. The iShares Core Dividend Growth ETF (DGRO) offers a dividend yield of 2.1% at a PE of 20.6x. It has 19% and 14% exposure to financials and industrials, respectively.

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