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13 Best Industrial Dividend Stocks to Buy Right Now

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In this article, we will take a look at some of the best industrial stocks that pay dividends.

In recent years, the industrial sector has generally seen stronger demand, although some segments, such as manufacturing automation, have started to show signs of slowing. According to a report from Edward Jones, the overall recovery is likely to continue, but several short-term risks could affect the sector’s growth. These include a possible slowdown in economic activity, ongoing geopolitical tensions, and weakening business and consumer confidence.

Since many industrial companies are cyclical, their performance tends to rise and fall with the changing conditions in the industries they serve. Within the industrial space, companies may be at different points in their business cycles. Because of this, investors may benefit from greater diversification by holding stocks from various industrial subsectors and targeting firms that serve a range of end markets.

Over the past three years, the S&P Industrial Index has outpaced the broader market, supported by strong performance in areas such as Aerospace & Defense, Building Products, Machinery, and Electrical Equipment. The trend continues this year as well, as the industrial index has surged by over 14% since the start of 2025, compared with a 6.67% return of the broader market. Given this, we will take a look at some of the best industrial stocks that pay dividends.

An oil worker wearing a hard hat and a safety vest checking an industrial oil pump.

Our Methodology

For this article, we first scanned Insider Monkey’s database of 1,000 hedge funds, as of the first quarter of 2025, and selected industrial companies across various segments within the industry, including manufacturing, construction, aerospace and defense, machinery and equipment, transportation and logistics, as well as utilities. From this pool of companies, we identified 13 dividend companies and ranked them in ascending order of the number of hedge funds having stakes in them at the end of Q1 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

13. Nordson Corporation (NASDAQ:NDSN)

Number of Hedge Fund Holders: 23

Nordson Corporation (NASDAQ:NDSN) is one of the best industrial stocks that pay dividends. On June 5, the company declared a quarterly dividend of $0.78 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 61 consecutive years. The stock supports a dividend yield of 1.41%, as of July 13.

In addition to its dividends, Nordson Corporation (NASDAQ:NDSN) has also shown solid earnings in fiscal Q2 2025. The company reported revenue of $683 million, which showed a 5% growth from the same period last year. Sales benefited from an 8% boost due to a recent acquisition, though this was partly offset by a 2% decline in organic sales and a slight negative impact from currency translation of less than 1%. EBITDA for the second quarter reached $217 million, representing 32% of sales, up 7% from the $203 million, or 31% of sales, reported in the same period last year. Looking ahead, the company expects third-quarter fiscal 2025 sales to fall between $710 million and $750 million, with adjusted earnings projected at $2.55 to $2.75 per diluted share.

Nordson Corporation (NASDAQ:NDSN) develops advanced precision technologies aimed at addressing challenges across a wide range of industries. The company specializes in equipment manufacturing and is recognized for its top-tier precision engineering. Its offerings include fully integrated systems, consumables, and aftermarket parts.

12. A. O. Smith Corporation (NYSE:AOS)

Number of Hedge Fund Holders: 37

A. O. Smith Corporation (NYSE:AOS) is among the best industrial stocks that pay dividends. The company runs a capital-efficient, high-return business centered around the established and stable North American water heater market, where about 80–85% of demand comes from replacements. In this core market, it holds strong pricing power due to limited competition and gains added strength from a hybrid distribution model that provides both consistency and broad market access.

On July 8, A. O. Smith Corporation (NYSE:AOS) declared a quarterly dividend of $0.34 per share, which was consistent with its previous dividend. The company’s dividend policy has remained stable over the years, as it has raised its payouts for 32 consecutive years. In addition, it has paid uninterrupted dividends to shareholders for 85 years in a row. As of July 13, the stock has a dividend yield of 1.97%.

A. O. Smith Corporation (NYSE:AOS)’s cash position was solid, which helped the company distribute dividends smoothly over the years. In the most recent quarter, the company reported an operating cash flow of $38.7 million, and its free cash flow came in at $17.4 million.

11. Illinois Tool Works Inc. (NYSE:ITW)

Number of Hedge Fund Holders: 46

Illinois Tool Works Inc. (NYSE:ITW) is one of the best dividend stocks in the industrial sector. The company stands out as a strong example of setting bold objectives, meeting them, and delivering long-term value to its shareholders. Between 2012 and 2023, ITW implemented its Enterprise Strategy, which led to a rise of over 9 percentage points in operating margin, more than tripled both its earnings per share and market capitalization, and grew its dividend by 3.7 times.

Illinois Tool Works Inc. (NYSE:ITW) currently offers a quarterly dividend of $1.50 per share, with a dividend yield of 2.31%, as of July 13. The company has been rewarding its shareholders with growing dividends for the past 52 years.

Illinois Tool Works Inc. (NYSE:ITW) aims to reach a 30% operating margin by 2030 and deliver average annual earnings per share growth of 9% to 10%, which would allow for a 7% yearly increase in its dividend. The company also plans to turn all of its net income into free cash flow, helping to fund rising dividends, share repurchases, and ongoing investments in the business. While the strategy is ambitious, ITW’s consistent improvement in operating margin over time shows that it’s achievable.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!