3 Top Stocks With High Dividend Yields
The industrial sector has been hard hit by events in 2020, and many stocks have been sold off as a consequence. As such, there are plenty of dividend-paying stocks to choose from in the sector. In particular, industrial conglomerate 3M (NYSE: MMM), package delivery company UPS (NYSE: UPS), and industrial supply company MSC Industrial (NYSE: MSM) are interesting for income-seeking investors. Let's take a closer look at why.
Sporting a 3.3% dividend yield, the package delivery company will attract dividend hunters as well as value investors convinced that its investments in e-commerce deliveries will ultimately pay off. In common with FedEx (NYSE: FDX), UPS has been ramping up capital spending in its networks in order to support growth in e-commerce deliveries.
Investing for growth is all well and good, but it's far from clear that UPS and FedEx aren't stuck in an endless cycle of investment that will curtail free cash flow (FCF) generation. In a similar vein, business-to-consumer (B2C) e-commerce deliveries tend to be lower margin due to the extra costs involved in delivering to myriad residential addresses. As a result, there may be a long-term margin challenge for both companies.
Source Fool.com
