Dividend Download

Top dividend stocks & news

Industrials Shine in 2025: Dividend Stocks with Growth Potential

The industrial sector has taken center stage as the top-performing sector, outpacing even the tech-heavy markets.

With a year-to-date gain of 17%, industrials have surpassed the technology sector’s 13% growth, driven by a resilient U.S. economy and favorable trade policies under the Trump administration.

These policies, particularly tariff adjustments, have bolstered U.S.-based manufacturing, creating a robust environment for industrial companies.

Bank of America’s Industrial Momentum Indicator further supports this trend, showing a steady recovery from tariff-related lows.

While high-profile names like GE Vernova and Howmet Aerospace have led the sector’s charge, several under-the-radar industrial stocks offer both dividend income and significant upside potential.

Analysts identified some names and we picked S&P 500 industrial companies with a minimum dividend yield of 1.5% and consensus price targets indicating at least 5% upside as of late July 2025.

Here are the top picks:

C.H. Robinson Worldwide: Navigating Freight with AI

C.H. Robinson Worldwide, a leading freight transportation and logistics company, stands out despite a modest 1% decline in its stock price in 2025.

Offering a dividend yield of 2.4%, the company is well-positioned for growth, with consensus price targets suggesting an 8% upside.

Wolfe Research recently upgraded C.H. Robinson to outperform, citing its attractive valuation and potential to exceed consensus earnings expectations in 2026.

Analyst Scott Group highlights the company’s adoption of artificial intelligence to enhance labor productivity, stating, “CHRW is one of the few transportation companies leveraging AI effectively.”

This technological edge, combined with a strong balance sheet, makes C.H. Robinson a compelling choice for investors seeking both income and capital appreciation. Of the 27 analysts covering the stock, 14 rate it a buy or strong buy, reflecting Wall Street’s confidence in its long-term prospects.

FedEx: Cost-Cutting and Demand Drive Returns

FedEx, a global leader in shipping and logistics, has faced challenges in 2025, with its stock down 14% year-to-date. However, its 2.4% dividend yield and projected 9% upside based on consensus price targets make it an attractive option.

Wells Fargo analyst Christian Wetherbee favors FedEx over competitor UPS, citing the company’s cost-cutting initiatives, Drive and Network 2.0, which are enhancing operational efficiency. Additionally, FedEx has benefited from strong demand surcharges, with a 22% year-over-year increase in Ground residential surcharges and a 5% rise in Express surcharges.

These tailwinds, combined with FedEx’s global reach and operational improvements, have earned it strong Wall Street support, with 22 of 32 analysts rating it a buy or strong buy.

Otis Worldwide: Elevating Profits Through Service

Otis Worldwide, a global leader in elevator manufacturing and services, offers a 1.9% dividend yield despite a 4% stock price decline in 2025.

With consensus price targets indicating an 11% upside, Otis is an undervalued gem in the industrial sector.

JPMorgan analyst Stephen Tusa upgraded Otis to overweight, noting its “non-consensus cheap visibility” and resilience despite challenges in China’s original equipment market.

Otis’ service business, which accounts for nearly 90% of its profits, provides a stable revenue stream that offsets regional volatility.

Tusa emphasizes that Otis trades at a discount compared to its peers, making it an attractive investment. While Wall Street largely rates Otis as a hold, its strong fundamentals and consistent dividend payments position it as a reliable choice for income-oriented investors seeking exposure to the industrial sector’s growth.

^{Note: These names were originally identified by CNBC. Our team added more details to help our subscribers make an educated decision.}

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.