After the banks and homebuilders that fueled the housing bubble, the industrial sector was perhaps hardest hit by the financial crisis and resulting economic downturn. As overall spending and activity slowed, manufacturers took a beating — and many haven’t recovered.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve identified seven industrial stocks to sell.
Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”
7 Best Industrial Stocks to Sell in 2012 - ABB Ltd. (NYSE:ABB) works with power and automation technologies. While the Dow Jones has posted a gain of 9% in the last year, ABB has recorded a loss of 11% in the same time. ABB stock gets an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude with which earnings projections have increased over the past months. For more information, view my complete analysis of ABB stock.
7 Best Industrial Stocks to Sell in 2012 - Emerson Electric Co. (NYSE:EMR) is a diversified global technology company that has dropped 13% in the past 12 months. Emerson stock gets a “D” grade for sales growth, a “D” grade for earnings growth and a “D” grade for its ability to exceed the consensus earnings estimates. For more information, view my complete analysis of EMR stock.
7 Best Industrial Stocks to Sell in 2012 - Koninklijke Philips Electronics (NYSE:PHG) is the parent company of Philips Group and has 118 production sites in 27 countries. PHG stock has dipped more than 36% since March 2011. Philips stock gets a “D” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings growth, a “D” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “D” grade for the magnitude in which earnings projections have increased over the past months, a “D” grade for cash flow and a “D” grade for return on equity. For more information, view my complete analysis of PHG stock.
7 Best Industrial Stocks to Sell in 2012 - General Electric Co. (NYSE:GE) is the most well-known stock on this list. It’s involved in aircraft engines, power generation, water processing, household appliances, medical imaging, consumer financing and other endeavors. Despite its big name, GE has posted a loss of 4% in the last year. GE stock gets an “F” grade for sales growth. For more information, view my complete analysis of GE stock.
7 Best Industrial Stocks to Sell in 2012 - Siemens (NYSE:SI) is an electronics and electrical-engineering company. Despite gains by the broader markets, SI stock is down 21% in the last year. Siemens stock gets a “D” grade for sales growth, a “D” grade for earnings growth, an “F” grade for earnings momentum, a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude with which earnings projections have increased over the past months. For more information, view my complete analysis of SI stock.
7 Best Industrial Stocks to Sell in 2012 - Ingersoll-Rand (NYSE:IR) is involved in enhancing the comfort of air in homes and buildings, in the transport of food and perishables and in secure homes and commercial properties. Ingersoll-Rand stock has lost 13% in the last 12 months. IR stock gets an “F” grade for sales growth, an “F” grade for operating margin growth and a “D” grade for cash flow. For more information, view my complete analysis of IR stock.
CSX Corp. (NYSE: CSX) is a transportation supplier that rounds out the list with a 17% drop in the past year. CSX stock gets a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of CSX stock.
Top 40 Dividend Stocks to Invest in 2012
Dividend stocks have long been considered an essential part of a balanced portfolio. While investors can seek out growth stocks to ramp up their returns, the stable, regular income of dividend stocks can help shoulder the load when the markets aren’t cooperating.
In its quest to recognize those stocks that deliver ample payouts, European financier Societe Generale (PINK:SCGLY) recently published its annual report of the top 40 dividend payers across the globe, based on 2011 dividends. And in addition to dropping some whopping numbers — for instance, European telecom Telefonica (NYSE:TEF) paid out 12% last year, and even after its announced cut, still yields 9% — there’s a few interesting trends.
First, a look at the list:
While emerging markets might be hot regions for growth, no one can beat ol’ fuddy-duddy Europe and the United States for income investing — the regions combine for 85% of the companies on this list. “Oceania” really refers to Australia and its bevy of high-yielding banks — as well as miner BHP Billiton (NYSE:BHP) at 2.9%. And the emerging market of Brazil did manage to make it onto the list, with miner and metal company Vale (NYSE:VALE) representing South America at an enormous 7.4% yield. The breakdown is shown below:
Broken down by industry, financial, energy and pharma companies are the heaviest hitters in dividends, with a good spread in telecoms — for instance, frequent Dow dividend leaders AT&T (NYSE:T) and Verizon (NYSE:VZ) — and technology.
In its quest to recognize those stocks that deliver ample payouts, European financier Societe Generale (PINK:SCGLY) recently published its annual report of the top 40 dividend payers across the globe, based on 2011 dividends. And in addition to dropping some whopping numbers — for instance, European telecom Telefonica (NYSE:TEF) paid out 12% last year, and even after its announced cut, still yields 9% — there’s a few interesting trends.
First, a look at the list:
| Company | Ticker | Yield | Company | Ticker | Yield | |
| Telefonica | TEF | 12% | Roche | RHHBY | 4.2% | |
| Banco Santander | STD | 9.9% | Siemens | SI | 4.0% | |
| Westpac | WBK | 7.9% | BP | BP | 3.9% | |
| National Australia Bank | NABZY | 7.7% | Merck | MRK | 3.8% | |
| Vodafone | VOD | 7.6% | Philip Morris | PM | 3.8% | |
| Vale | VALE | 7.4% | Pfizer | PFE | 3.7% | |
| France Telecom | FTE | 7.4% | General Electric | GE | 3.6% | |
| ANZ Banking | ANZBY | 7.0% | Nestle | NSRGY | 3.6% | |
| Commonwealth Bank of Australia | CBAUY | 6.6% | Johnson & Johnson | JNJ | 3.4% | |
| AT&T | T | 6.5% | Intel | INTC | 3.2% | |
| ENI | E | 6.1% | JPMorgan Chase | JPM | 3.2% | |
| Total | TOT | 5.7% | Procter & Gamble | PG | 3.2% | |
| Verizon | VZ | 5.1% | BHP Billiton | BHP | 2.9% | |
| GlaxoSmithKline | GSK | 4.8% | Chevron | CVX | 2.9% | |
| Royal Dutch Shell (A Shares) | RDS.A | 4.8% | Coca-Cola | KO | 2.8% | |
| HSBC | HBC | 4.8% | Microsoft | MSFT | 2.6% | |
| Sanofi-Aventis | SNY | 4.7% | Wal-Mart | WMT | 2.4% | |
| Royal Dutch Shell (B Shares) | RDS.B | 4.6% | Wells Fargo | WFC | 2.4% | |
| Novartis | NVS | 4.4% | Exxon Mobil | XOM | 2.1% | |
| British American Tobacco | BAT | 4.3% | IBM | IBM | 1.6% | |
| Note: Companies ranked on blend of 2011 dividends and company-specific characteristics. Share prices used to determine ranking are from Jan. 23, 2012 | ||||||
Broken down by industry, financial, energy and pharma companies are the heaviest hitters in dividends, with a good spread in telecoms — for instance, frequent Dow dividend leaders AT&T (NYSE:T) and Verizon (NYSE:VZ) — and technology.
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