In this article, we discuss the 14 best industrial dividend stocks to buy according to analysts.
2025 was a tough year for the American manufacturing industry. According to a Deloitte report on November 13, the sector experienced a downturn in activity during the year, costs increased, unemployment rose, and manufacturing and construction budgets also slumped. A major driving force behind these conditions was the uncertainties regarding trade policies and taxes.
However, these limitations aside, Deloitte anticipates some opportunities next year for American manufacturers. The One Big Beautiful Bill Act, which consists of multiple tax stipulations that could decrease costs and promote investment in the manufacturing space, was passed. Moreover, the US made adjusted trade agreements with the United Kingdom and Vietnam, which could mitigate uncertainty. Interest rate drops might also trigger higher demand for manufactured products. However, Deloitte urged manufacturers to brace for diverse economic situations, including ongoing market trends, declining demand, or future growth.
Similarly, West Monroe released its mid-market manufacturing outlook 2026 report on November 18. Its Quarterly Supply Chain Poll of 250 industry executives revealed that 46% of companies reacted to trade or policy shifts within a week this year, which led to incorrect data input and processing at times. However, for 2026, they are concentrating on fast yet accurate decision-making. This means digitalizing their structures and unifying data across plants and suppliers, maintaining an organized master database, and identifying reliable sources. The Poll suggested that executives are willing to redefine human and AI collaboration in order to effectively measure results and scale operations.
Moreover, the West Monroe report pointed out that while M&A volume fell in the third quarter of 2025, the transaction values rose as investors chased high-quality assets. Heading into 2026, M&A is imperative for modernization and risk mitigation, helping manufacturers adopt AI, fill talent gaps, and balance regional exposure amid a volatile trade landscape.
With that outlook in mind, let’s take a look at the 14 best industrial dividend stocks to buy according to analysts.
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Our Methodology
This list was created by screening industrial stocks with dividend yields higher than 1% and average analyst upside potential of 10% or more as of November 30. Next, we sorted companies by market cap in descending order to focus on the largest firms, which typically handle market volatility better and maintain steady dividends. We then manually verified an average upside of 10% or more, ending up with a list of 14 stocks. We also included hedge fund sentiment data for each stock as of Q3 2025 to give more insight into where smart money is moving. We ranked the following list in ascending order of upside potential.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. Johnson Controls International plc (NYSE:JCI)
Number of Hedge Fund Holders: 69
Upside Potential as of November 30: 10.72%
Dividend Yield as of November 28: 1.38%
Johnson Controls International plc (NYSE:JCI) is one of the best industrial stocks to buy. On November 7, Goldman Sachs maintained a Buy rating on JCI following its fiscal Q4 earnings topping estimates, as per the Fly’s report. The firm lifted the price target on the stock from $124 to $142. Analyst Joe Ritchie conveyed to investors that segment EBITDA came in 3% higher than market consensus, due to better-than-anticipated growth in all locations. Goldman added that the company’s guidance looks attainable given the momentum in the Applied HVAC space.
On November 5, Johnson Controls reported its fiscal Q4 results. The GAAP EPS came in at $0.42, with Q4 sales growing 3% to $6.4 billion, with JCI reporting robust double-digit growth in Systems and high single-digit growth in Service segments. During the quarter, the company shelled out $243 million in dividends and bought back an aggregate of $5 billion in ordinary stock under an accelerated share repurchase initiative.
Johnson Controls International plc (NYSE:JCI) designs, distributes, installs, and maintains HVAC systems, building controls, fire and security systems, and refrigeration units. Its services also include inspections, routine maintenance, repairs, and energy-efficient and smart building solutions.
13. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 76
Upside Potential as of November 30: 12.76%
Dividend Yield as of November 28: 1.56%
RTX Corporation (NYSE:RTX) is one of the best industrial stocks to buy. On November 18, BNP Paribas Exane began coverage of RTX Corporation with an Outperform rating and a price target of $210, according to a report by the Fly.
Separately, a Reuters report dated November 21 indicates that Raytheon-Rafael Protection Systems, a joint venture of RTX, has made a $1.25 billion deal with Israel to provide surface-to-air missiles. The contract involves missiles, missile kits, and testing gear for Israel’s Iron Dome defense system.
$33 million has been invested to build a new site located in East Camden, Arkansas, to manufacture these missiles for Iron Dome and its US version, SkyHunter. In the month prior to this announcement, RTX boosted its yearly profit and revenue outlook, driven by the growing demand for its missiles and related services amid the rising global tensions.
RTX Corporation (NYSE:RTX) is a Virginia-based aerospace and defense company that caters to commercial airlines, militaries, and government clients worldwide. The company specializes in aviation systems, training technology, building and maintaining aircraft engines, and defense systems that help detect, track, and counter threats.
12. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 57
Upside Potential as of November 30: 12.88%
Dividend Yield as of November 28: 2.38%
Howmet Aerospace Inc. (NYSE:HWM) is one of the best industrial stocks to buy. On November 18, BNP Paribas Exane started covering Howmet Aerospace stock, assigning it an Outperform rating and a $240 price target, according to a report by the Fly.
In a separate update, dated November 3, Howmet Aerospace Inc. (NYSE:HWM) priced $500 million in 4.550% notes that mature in 2032. The net proceeds, as well as the company’s cash reserves, will be put toward redeeming roughly $625 million of its 5.90% notes due in 2027. This refinancing initiative is likely to add $14 million in annual interest payment savings.
The offering concluded on November 12, with Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley managing the books for this deal.
Howmet Aerospace Inc. (NYSE:HWM) designs and manufactures engineered products for the aerospace and transport industries worldwide. The company has four main segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels.
11. Republic Services, Inc. (NYSE:RSG)
Number of Hedge Fund Holders: 51
Upside Potential as of November 30: 13.22%
Dividend Yield as of November 28: 1.15%
Republic Services, Inc. (NYSE:RSG) is one of the best industrial stocks to buy. On November 24, Goldman Sachs assigned a Buy rating on RSG, with an accompanying price target of $255.
In a separate business update, dated November 17, the Benton County Board of Commissioners finally allowed Republic Services to extend its 178-acre Coffin Butte Landfill. Coffin Butte manages most of the municipal waste of Marion County and the entirety of Polk County. The company has been seeking authorization for this landfill’s enlargement since 2021. The current proposal was submitted by Republic in July 2024, and it is 50% less in size than the prior plan.
The Benton County Planning Commission, in July 2025, denied the expansion request on grounds of insufficient evidence suggesting that it would not negatively affect surrounding land or place extra strain on local authorities. The decision was then taken to the Benton County Commissioners by Republic Services, who then voted in its favor on November 17, subject to conditions.
These conditions include supervising any effects on nearby wells and wildlife, as well as managing any odor. Additionally, the company must pay $242,000 annually to Benton County so they can get professionals to audit the company’s in-house monitoring and surveillance of the neighboring land and wildlife.
Republic Services, Inc. (NYSE:RSG) is an Arizona-based waste management and environmental services company that collects, processes, and disposes of residential and industrial waste, including hazardous and non-hazardous materials.
10. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 59
Upside Potential as of November 30: 13.50%
Dividend Yield as of November 28: 1.52%
Northrop Grumman Corporation (NYSE:NOC) is one of the best industrial stocks to buy. According to a report by The Fly dated November 18, analyst Matthew Akers from BNP Paribas Exane kicked off coverage of Northrop Grumman with an Outperform rating and a price target of $710.
Independent of the analyst action, Northrop Grumman secured a contract valued at up to $100 million from the United States Air Force on November 26. The company is supposed to supply support services for the Air Force’s Stand-in Attack Weapon (SiAW) Subsystem for the long run. This is a core element in the service’s push to deploy new strike capabilities against protected targets.
According to the contract notice, the award is a $100 million maximum reimbursement for costs, and it is a firm-fixed-price, IDIQ (indefinite-delivery/indefinite-quantity) agreement, active until December 31, 2034. The Air Force Lifecycle Management Center, situated at the Eglin Air Force Base in Florida, is managing this award. Northrop will carry out all contracted tasks in Baltimore, Maryland, where its advanced sensor and seeker manufacturing sites are present.
Northrop Grumman Corporation (NYSE:NOC) is a Virginia-based global aerospace and defense company that specializes in designing, building, and updating aircraft, missiles, defense systems, intelligence, surveillance, sensors, electronic warfare, and cyber solutions.
9. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 72
Upside Potential as of November 30: 13.62%
Dividend Yield as of November 28: 1.76%
Eaton Corporation plc (NYSE:ETN) is one of the best industrial stocks to buy. On November 7, Wells Fargo analyst Joe O’Dea maintained a Hold recommendation on Eaton Corp, along with a price target of $395.
Separately, a Reuters report dated November 4 revealed that Eaton plans to purchase Boyd Corporation’s thermal business from Goldman Sachs Asset Management in a $9.5 billion deal. This will be the company’s fourth transaction this year in a bid to strengthen its data center capacity and meet the expanding AI demand. Regarding this deal, Reuters quoted RBC Capital Markets’ analyst Deane Dray, who said:
“What is impressive to us is that Eaton has gone “all-in” in liquid cooling with this chunky deal size, rather than dipping its toe in with a small investment like the other players have done.”
Eaton mentioned that anticipated sales for Boyd Thermal in 2026 amount to $1.7 billion, most of which will be generated from the liquid cooling technology employed at data centers. This transaction value reflects 22.5x Boyd’s estimated EBITDA for 2026. The Boyd acquisition is projected to conclude in Q2 2026, and it would strengthen Eaton’s adjusted earnings starting in the second year after closing the transaction. After the sale to Eaton, Goldman Sachs will continue to support Boyd’s engineered materials business.
Eaton CEO Paulo Ruiz commented:
“Our combined expertise in both power and liquid cooling from the chip to the grid will enable customers to manage increasing power demands more effectively,”
Eaton Corporation plc (NYSE:ETN) is based in Dublin, Ireland. The global power management company operates via Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments.
8. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 76
Upside Potential as of November 30: 14.87%
Dividend Yield as of November 28: 1.91%
Honeywell International Inc. (NASDAQ:HON) is one of the best industrial stocks to buy. On November 25, Honeywell revealed that Dangote Petroleum Refinery and Petrochemicals FZE will rely on its cutting-edge technology, services, catalysts, and equipment to increase crude processing capabilities and double production at its Lekki refinery in Nigeria by 2028.
Dangote will utilize the refining and petrochemical processing solutions by Honeywell, which will trim production costs, enhance efficiency, and expand the refining capacity to 1.4 million barrels every day from 650,000 in the coming three years. This expansion will make Dangote the biggest petroleum refinery worldwide, which will boost fuel production within the continent and lower imports, thus providing energy reliability to locals.
Dangote will also get access to Honeywell’s Oleflex technology, which will result in an annual production of 750,000 metric tons of propylene. With this license in place, Dangote’s total propylene production will rise to 2.4 million metric tons per year.
In another corporate update on November 24, Honeywell International Inc. (NASDAQ:HON) disclosed that it is partnering with Ramsey County, Minnesota, to install building automation and energy management systems in 10 ice rinks and the county’s Parks and Recreation office. The project has a goal to reduce yearly electricity expense by around 20%, trim operational costs, and enhance system resilience. It also supports Ramsey County’s 2024 Climate Equity Action Plan, which focuses on reduced energy use and 100% carbon-free energy in county facilities. The installation is expected to conclude by year-end.
Honeywell International Inc. (NASDAQ:HON), based in Charlotte, North Carolina, is a global company working in aerospace, industrial and building automation, and energy and sustainability systems.
7. Waste Management, Inc. (NYSE:WM)
Number of Hedge Fund Holders: 62
Upside Potential as of November 30: 18.10%
Dividend Yield as of November 28: 1.59%
Waste Management, Inc. (NYSE:WM) is one of the best industrial stocks to buy. On November 24, Adam Bubes at Goldman Sachs reiterated a Buy call on Waste Management. The price target for the shares came in at $256.
In a different business update on November 12, the company shared that it now accepts plastic cups made of polypropylene and paper to-go cups, categorizing them as recyclable materials. Residents can now participate in curbside recycling of to-go cups in more local programs across the United States.
The chief sustainability officer at Waste Management, Tara Hemmer, commented:
“Plastic and paper to-go cups are showing up in greater volumes at our facilities. We are executing on our plans to invest $1.4 billion in new recycling infrastructure across North America to unlock recycling capabilities and solutions so that more material can be turned into new products. Recycling works best when it’s accessible—and when industry leaders like WM, local communities, consumers and companies who purchase recycled material for new products and packaging all work together.”
WM is joining forces with different partners, including Starbucks, The Recycling Partnership, How2Recycle, NextGen Consortium, and local governments, to update recycling guidelines and improve community awareness for curbside and drop-off programs.
Waste Management, Inc. (NYSE:WM) is a Texas-based company providing waste and recycling collection, landfill and transfer station operations, and landfill gas-to-energy production.
6. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 58
Upside Potential as of November 30: 18.85%
Dividend Yield as of November 28: 3.01%
General Dynamics Corporation (NYSE:GD) is one of the best industrial stocks to buy. On November 18, BNP Paribas Exane began coverage of General Dynamics, assigning the stock an Outperform rating and a $410 price target, as per a report from the Fly.
In a different update on November 13, the company revealed that one of its business divisions, General Dynamics Information Technology (GDIT), has strengthened its partnership with Google Public Sector to enhance innovation for the American government. The collaboration will work on offering safe AI and cloud systems that add defense and intelligence advantages, in addition to advancing and modernizing citizen services for civilian authorities.
GDIT will use Google Cloud to integrate its Digital Accelerators portfolio, allowing federal agencies to speed up decisions, improve security, save money, and achieve their objectives. GDIT and Google are focusing on two main areas. First, they are co-developing “mission edge AI” solutions that utilize Google Distributed Cloud, providing access to AI and computing in remote or disconnected environments, even offline and at high security levels. Second, they aim to modernize federal citizen services using GDIT’s AI and Google Cloud’s Contact Center AI, in order to improve efficiency and the user experience.
General Dynamics Corporation (NYSE:GD), based in Reston, Virginia, is a global aerospace and defense company. It has four main business divisions: Aerospace, Marine Systems, Combat Systems, and Technologies.
5. Oshkosh Corporation (NYSE:OSK)
Number of Hedge Fund Holders: 43
Upside Potential as of November 30: 18.76%
Dividend Yield as of November 28: 1.47%
Oshkosh Corporation (NYSE:OSK) is one of the best industrial stocks to buy. On November 25, Barclays analyst Adam Seiden began coverage of Oshkosh with a Buy rating and a $150 price target.
On November 12, in a separate business update, the company announced that it will let go of 160 employees from its Oregon Street plant in January 2026, following a massive $52.8 million drop in Q3 2025 sales. The company’s Director of Global Marketing and Communications, Alexandra Hittle, mentioned that these layoffs were the company’s last resort after all possible options were measured. She mentioned:
“Despite proactive measures to expand available work and retain our skilled team members, including upskilling programs, insourcing efforts and voluntary reductions, we continue to experience overstaffing in certain production areas.”
The president of United Auto Workers Local 578, Bob Lynk, criticized that the current layoffs resulted from Oshkosh Corporation focusing on its military segment, even though it lost the JLTV Phase 2 contract two years ago.
Oshkosh Corporation (NYSE:OSK), headquartered in Oshkosh, Wisconsin, manufactures specialized vehicles and equipment for global customers. The company has three main divisions: Access, Defense, and Vocational.
4. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 99
Upside Potential as of November 30: 20.72%
Dividend Yield as of November 28: 1.61%
Union Pacific Corporation (NYSE:UNP) is one of the best industrial stocks to buy. On November 20, Bernstein analyst David Vernon affirmed a Buy rating on Union Pacific, with a $290 price target.
Independent of the analyst action, a November 14 Reuters report revealed that 9 Republican state attorneys general drew attention to competition risks regarding Union Pacific’s bid to acquire Norfolk Southern, a competitor despite its smaller operations, in an $85 billion transaction, which would ultimately result in America’s first coast-to-coast freight rail service.
Tennessee Attorney General Jonathan Skrmetti and Kansas Attorney General Kris Kobach led the team of officials who opposed the deal and wrote a letter to the Surface Transportation Board. In their letter, they stated that they were worried that this buyout “will result in undue market concentration that stifles competition and therefore creates higher prices, lower reliability, and less innovation at the expense of America’s manufacturers and, ultimately, America’s consumers.”
The 9 opposing state attorneys general were also concerned about monopolistic pricing impacting American companies and their capacity to compete with foreign suppliers. They went as far as to mention that the merger could risk the industrial and agricultural sectors, as well as pose a danger to national security.
In response, Union Pacific said that it will present its case to the Surface Transportation Board to show how the combination benefits the nation, meets public interest standards, and improves competition. President Donald Trump gave the merger his verbal consent in a meeting with UNP’s CEO in September 2025.
3. Masco Corporation (NYSE:MAS)
Number of Hedge Fund Holders: 44
Upside Potential as of November 30: 22.16%
Dividend Yield as of November 28: 1.20%
Masco Corporation (NYSE:MAS) is one of the best industrial stocks to buy. On November 4, the Fly reported that Chris Graja from Argus maintained a Buy recommendation on Masco but trimmed the price target on the shares from $82 to $80. According to the analyst, the business underwent a transformation that allowed it to deal with economic volatility during the pandemic, supply chain challenges, a soft European economy, interest rate hikes, and a stale housing market. Graja noted that despite a challenging landscape for home improvement products, the company has fared well given its operational efficacy and innovative solutions.
Separately, the company announced its Q3 results on October 29. The company fell short on earnings expectations, reporting an EPS of $0.896, while the market consensus stood at $1.02. Accordingly, it lowered its EPS guidance for 2025 to a range of $3.90 to $3.95, down from $3.90 to $4.10. This update factors in the effects of its Q3 results, increased tariffs, and the company’s forecast of lower industry demand amid macroeconomic and political instability worldwide. The company paid a quarterly dividend of $0.31 per share on November 24, and its liquidity position at the end of Q3 stood at $1,559 million.
Masco Corporation (NYSE:MAS) is a Michigan-based manufacturer of home improvement and building products sold worldwide. Its Plumbing Products division offers faucets, showers, sinks, tubs, spas, plumbing parts, and water systems, while the Decorative Architectural Products division provides paints, coatings, stains, hardware, and bath accessories.
2. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 68
Upside Potential as of November 30: 26.22%
Dividend Yield as of November 28: 2.38%
Lockheed Martin Corporation (NYSE:LMT) is one of the best industrial stocks to buy. On November 6, Lockheed made a landmark achievement in AI as it launched its STAR.OS™ solution, which allows several AI systems to collaborate seamlessly. This solution can be utilized for multi-company partnerships and offers a solution to an ever-present hindrance in AI by giving a standardized framework. This framework allows for the efficient combination of several AI systems to reach a shared goal.
STAR.OS™ combines systems, tactical apps, AI, and rapid deployment to support national security. It includes STAR.SDK™ for developers, STAR.IO™ to link AI systems, and STAR.UI™, an intuitive interface that shows real-time AI usage.
Lockheed Martin’s vice president and chief digital AI officer, Mike Baylor, commented:
“With the STAR.OS™ solution, we’re taking a major step forward in our ability to bring together different AI systems and make them work together seamlessly. This will help us provide more effective and efficient solutions to our customers and ultimately help them make more informed decisions and stay ahead of emerging threats.”
Separately, on November 18, BNP Paribas Exane analyst Matthew Akers initiated coverage of Lockheed Martin (LMT) with an Outperform rating and $550 price target
1. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 58
Upside Potential as of November 30: 36.49%
Dividend Yield as of November 28: 2.65%
Trane Technologies plc (NYSE:TT) is one of the best industrial stocks to buy. On November 14, BofA elevated the price target on Trane from $490 to $550, while upgrading the stock from Neutral to Buy. The upgrade follows the company’s skillful handling of the slowing residential demand in H2 2025 and the possible upside next year.
BofA also noted that Trane has a major engagement in applied HCAC, which accounts for nearly 22% of its revenue, and observed that the company is set to gain from the rebound in Americas Transport in 2026. BofA also emphasized that Trane’s service business, which makes up 33% of revenue, helps contain cyclical swings and supports better results than those of HVAC competitors and market consensus.
Separately, on October 28, Trane Technologies plc (NYSE:TT) launched the industry’s first complete thermal management reference design for NVIDIA Omniverse DSX, built for gigawatt-scale AI data centers. The solution enhances performance, scalability, and fast deployment for high-demand AI factories. Trane Technologies’ thermal management system also scales for high-density NVIDIA systems and integrates Omniverse DSX Digital Twins to combine 3D data, speeding up the design, simulation, and deployment of large AI factories while improving sustainability.
Trane Technologies plc (NYSE:TT), headquartered in Swords, Ireland, manufactures and distributes HVAC and transport refrigeration products worldwide.
While we acknowledge the potential of TT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TT and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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