Recent volatility in technology stocks underscores the importance of portfolio diversification, particularly in sectors with resilient companies. Two standout dividend stocks in the industrial sector, RTX and WM, offer compelling investment opportunities for those seeking stability and growth. RTX, the parent company of Raytheon, is poised to benefit from increased defense spending as the U.S. military replenishes its arsenal. With a dividend yield of 1.4% and a solid growth outlook—projected annual earnings growth of 10%—RTX presents a strong buy-and-hold candidate, despite a valuation of over 27 times 2026 earnings estimates.
Similarly, WM, formerly Waste Management, operates the largest landfill network in the U.S. and has demonstrated consistent performance with a 23-year history of dividend increases. With a payout ratio of just 46% and expected earnings growth of 11% to 12% over the next few years, WM’s shares, trading at 28 times earnings estimates, are also considered fairly valued.
For investors navigating market turbulence, both RTX and WM represent solid options for long-term growth and reliable income.
Source: fool.com