3 Industrial Dividend Stocks That Keep Paying No Matter What the Market Does

Key Points

The industrial sector is cyclical by nature.

These three industrials are Dividend Kings, with 50+ years' worth of dividend increases.

Emerson Electric, Nordson, and Stanley Black & Decker will attract different types of investors.

• 10 stocks we like better than Emerson Electric ›

Industrial stocks largely sell products to other companies. Demand for those products is usually highly dependent on economic activity, making industrial stocks like Emerson Electric (NYSE: EMR), Nordson (NASDAQ: NDSN), and Stanley Black & Decker (NYSE: SWK) highly cyclical businesses. And yet all three are Dividend Kings, with 50+ years of annual dividend increases behind each.

Wall Street is currently dealing with conflicting economic signals. Consumers are tightening their budgets. Oil prices are high thanks to the geopolitical conflict in the Middle East. There are legitimate concerns that a recession is possible. On the other hand, U.S. economic growth has yet to turn negative. If you are considering buying an industrial stock, but are worried that a recession is on the way, you might want to do a deep dive on these three Dividend King industrials.

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Emerson Electric is on automatic

Emerson Electric has shifted its business over time and is now focused squarely on industrial automation. It sells everything from software to switches that a company needs to automate its factory. Automation is a huge upfront expense, but it helps companies save money over the long term. And, notably, the software side of the business creates an annuity-like income stream.

The company expects software to be an important growth driver, with sales expanding by 40% between 2025 and 2028. That will increase this division's share of sales from 14% to 17%. The rest of the business is expected to grow around 13% over the same span. The interesting thing is that a recession could actually lead companies to lean into automation, which might help protect Emerson's business from the full hit of a business downturn.

That said, Emerson isn't a cheap stock. The company's price-to-sales, price-to-earnings, and price-to-book value ratios are all above their five-year averages. Its 1.5% yield is higher than the 1.1% of the S&P 500 index (SNPINDEX: ^GSPC), but it isn't exactly huge. Still, the company has been around since the late 1800s and is a proven survivor. It could be a good place to hide in the industrial sector if you believe an economic storm is on the way.

Nordson is a fluid business

Nordson makes fluid control systems. It produces equipment that dispenses things like coatings and sealants. This industrial company has material exposure to industries such as healthcare and electronics. The stock experienced a deep drawdown in 2025, but has since recovered. It was a better buy during the drawdown, but the dividend yield is still near the high end of its 10-year range at roughly 1.1%.

That said, this is really a dividend growth story, with annualized dividend growth of around 13% over the past decade. The valuation story, meanwhile, is a bit mixed. The P/S ratio is a bit above its five-year average. The P/E ratio is roughly in line with its five-year average. And the P/B ratio is slightly below its five-year average. Growth and income, and dividend growth investors might want to take a look.

Stanley Black & Decker is turning things around

Stanley Black & Decker makes tools. Although many of its tools are sold to the construction industry, it also has a material consumer business. It can be more cyclical than other industrial companies. And it is working through a turnaround right now, as it looks to streamline its business, cut costs, and reduce leverage following a period of growth through acquisition. Only more aggressive investors should probably consider the stock.

However, there are signs of improvement. Notably, margins have expanded, and leverage has fallen, which is exactly the goal of the turnaround. Still, Wall Street is worried, and the stock remains unloved, down 60% from its 2021 high. The stock's P/S and P/B ratios are both below their five-year averages. There's no five-year average for the P/E because of losses over that span. The dividend yield is the real attraction, since it is sitting at a historically high 4.1%. And the dividend has continued to rise each year despite the headwinds, so it is clear that the board of directors places a high value on remaining a Dividend King.

You have industrial dividend options

Emerson is probably best seen as a slow, boring tortoise. Nordson is more of a growth story. And Stanley Black & Decker is the high-yield turnaround option. This trio covers a lot of investment ground for dividend investors looking at the industrial sector right now.

Should you buy stock in Emerson Electric right now?

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Reuben Gregg Brewer has positions in Stanley Black & Decker. The Motley Fool has positions in and recommends Emerson Electric. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.