3M Co (MMM), Emerson Electric Co. (EMR): Why These Industrials Companies Will Manufacture Great Long-Term Returns

Page 2 of 2

Stanley Black & Decker, Inc. (NYSE:SWK) provides hand tools, power, tools, and products for the health care and engineering industries. It performed strongly in the second quarter, growing sales by 12%. In addition, the remainder of the year is expected to be strong, even amid a difficult global economic climate. The company recently reiterated its expectations for strong organic growth in net sales, of 4%-5%, and $1 billion in free cash flow generation.

Paving the way for long-term wealth
Industrials companies by nature are cyclical, meaning that their fortunes are closely tied to the health of the economy. In recessions, their businesses are very likely to suffer; we saw this unfold as expected during the recent recession.

However, each of these stocks kept their impressive dividend track records intact, even during the dark days of the financial crisis. That serves as a great sign for investors, that management at each of these companies is still committed to providing shareholder returns, whether in good times or bad.

If you’ve grown weary of nervously hanging on to every market-rattling headline, and are looking for a place to earn reasonable returns for many years, start your research with Emerson Electric Co. (NYSE:EMR), Dover Corp (NYSE:DOV), 3M, and Stanley Black & Decker, Inc. (NYSE:SWK).

The article Why These Industrials Companies Will Manufacture Great Long-Term Returns originally appeared on Fool.com and is written by Bob Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends 3M and Emerson Electric Co.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Page 2 of 2