Pointers at Glance
- The US manufacturing sector contributes $2.3 trillion to GDP, around 12% of economic output, and employs nearly 15 million people, accounting for 10% of the American workforce.
- 3M Co., CNH Industrial NV, and Cummins Inc. are three US manufacturing stocks offering strong dividends, with yields of 6.2%, 2.8%, and 2.5%, respectively.
While many investors tend to concentrate on fast-paced sectors such as alternative energy or fintech innovations, it’s important not to underestimate the significance of the conventional manufacturing industry.
- Recent federal government data highlights that US manufacturing stocks holds substantial sway, contributing a noteworthy $2.3 trillion to the GDP, which equates to around 12% of the overall economic output.
- Furthermore, this sector employs nearly 15 million individuals, making up about 10% of the total American workforce.
While companies might not pursue growth as aggressively as some of the high-flying momentum stocks found on Wall Street, they do tend to provide a certain level of dependability and income potential that even Silicon Valley software firms struggle to replicate.
1. 3M Co. (MMM)
3M is a renowned chemicals company producing various products, from consumer goods like Post-It notes to healthcare essentials such as N95 respirators. Valued at over $50 billion, it boasts a strong track record of consistent dividends, with over 100 years of uninterrupted payouts and over 60 consecutive years of dividend increases. The dividend yield is 6.2%.
2. CNH Industrial NV (CNHI)
CNHI generates over $20 billion in yearly revenue, specializing in heavy machinery for farming and construction. Though its dividends are paid annually, they are notably higher than typical domestic stocks in the S&P 500. Keep in mind that distributions usually occur in spring. The dividend yield is 2.8%.
3. Cummins Inc. (CMI)
Cummins, a major engine industry player for over a century, has shifted focus to natural gas, electric, and hybrid powertrains alongside its traditional diesel engines. It is valued at $35 billion and has consistently increased dividends for nearly 20 years. Future increases seem likely, with dividends representing only about a third of total earnings. The dividend yield is 2.5%.
FAQs
1. What is the significance of the US manufacturing industry?
The US manufacturing sector contributes $2.3 trillion to GDP, about 12% of the economy, and employs nearly 15 million people, representing 10% of the American workforce.
2. Why invest in US manufacturing stocks for dividends?
US manufacturing stocks offer reliable income potential, backed by the industry’s stability and substantial economic contributions.
3. How has Cummins Inc. performed in terms of dividends?
Cummins Inc. is a long-standing engine industry leader diversifying into new powertrains. With almost 20 years of consecutive dividend increases, its dividend yield is 2.5%.
