Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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

Boring, for lack of a better word, is good. Sometimes, it pays to ignore the talking heads in the financial media and the obsessive hype lavished on speculative stocks that may or may not exist in a few years’ time.

3M Co (NYSE:MMM)When you’re investing your hard-earned money in stocks, it’s important to use history as a guide. Equities always involve risk of loss, which is why it’s worthwhile to examine which businesses have demonstrated true staying power.

Dividends that have stood the test of time
For investors with a long time horizon, it’s not about chasing the high-flying stocks currently garnering media attention. It’s about building long-term wealth. Diversified industrials such as Emerson Electric Co. (NYSE:EMR)3M Co (NYSE:MMM), Dover Corp (NYSE:DOV), and Stanley Black & Decker, Inc. (NYSE:SWK) aren’t likely to be featured on CNBC as the sexy new investing idea. What they can offer you, however, are years of reliable returns, and strong dividend payments that have richly rewarded investors for decades.

Emerson Electric Co. (NYSE:EMR) last raised its dividend in the fall of 2012. Emerson Electric Co. (NYSE:EMR) has a fantastic track record of raising its dividend for 55 consecutive years. Last year, Dover Corp (NYSE:DOV) raised its dividend 11%, representing the 57th consecutive year of a dividend increase. That record is the fourth-longest streak of dividend increases of any publicly listed company according to Mergent.

Meanwhile, 3M Co (NYSE:MMM) is no slouch: This year marks the 55th consecutive year that 3M Co (NYSE:MMM) has increased its dividend, and it has paid uninterrupted dividends to shareholders for an amazing 96 years in a row. And, for Stanley Black & Decker, Inc. (NYSE:SWK)’s part, the company raised its payout in July for the 46th consecutive year.

Dividends paid for by slow and steady growth
Of course, no company can maintain long track records of paying and raising dividends without strong profit growth over time, which each of these stocks has proven. Dover Corp (NYSE:DOV)’s full year 2012 revenue and diluted earnings per share from continuing operations climbed 10% and 11%, respectively, versus the prior year.

Emerson Electric Co. (NYSE:EMR) reported 3% underlying sales growth over the first half of the fiscal year, along with 12% growth in diluted EPS over the same period. For the full year, management expects modest underlying sales growth of 1.5%-2.5%, and 3%-6% earnings-per-share growth for the year. In other words, expect another year of slow and steady growth from this industrial stalwart.

3M Co (NYSE:MMM) is an industrial giant whose products, including Post-its and Scotch tape, are fixtures in many industries, including transportation, health care, and technology. 3M Co (NYSE:MMM) grew sales 3% year over year in the second quarter. While that seems like unspectacular growth, it’s worth noting that 3M Co (NYSE:MMM) showed strength in each of its business segments. The company’s quarterly performance was led by 6% growth in its industrial segment, which caters to the aerospace and automotive industries.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.