3 Manufacturing Stocks Yielding up to 2%

Manufacturing numbers released for September 2017 should make investors take a second look at CAE Inc. (TSX:CAE)(NYSE:CAE) and others.

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Statistics Canada released its September 2017 manufacturing survey on November 16. Manufacturing sales increased 0.5% to $53.7 billion in the month with the petroleum and coal sectors leading the way. Sales were up in 28.9% of Canadian industries, which should interest investors, as manufacturing continues to be a hot-button issue in NAFTA talks.

Let’s take a look at three manufacturing stocks that offer solid dividends for income investors.

CAE Inc. (TSX:CAE)(NYSE:CAE) is a Montreal-based manufacturer of simulation and modelling technologies, as well as training services to airliners, defence customers, healthcare specialists, and others. CAE stock has increased 20.6% in 2017 as of close on November 17 and 15% year over year.

Sales in the transportation equipment industry declined 0.7% to $10.3 billion in September 2017. However, aerospace products and parts saw sales climb 5.6%. CAE released its fiscal 2018 second-quarter results on November 10.

The company posted revenue of $646 million compared to $635.5 million in Q2 2017. Net income increased to $67 million in comparison to $48.9 million in the fiscal 2017 second quarter. CAE leadership reported continued strong results in its civil sector and improving numbers in defence and healthcare. The company reported $931 million worth of orders in the quarter, with half coming from the defence sector.

CAE also offers a dividend of $0.09 per share, representing a 1.6% dividend yield. This is an attractive growth and dividend play going forward.

Magna International Inc. (TSX:MG)(NYSE:MGA) is an Aurora-based global automotive supplier. Shares of Magna have climbed 17.3% in 2017 and 24% year over year. In late October, I’d discussed why investors should be keeping a close eye on the automotive industry.

September manufacturing sales were down 0.9% in Ontario compared to a 2.3% uptick in August. The month saw a 6.3% drop in automobile sales and a 2.7% in motor vehicle parts. Magna released its third-quarter results on November 9.

Magna reported record sales of $9.5 billion in the third quarter, representing a 7% increase from Q3 2016. Net income was flat at $503 million, and the company posted $1.36 diluted earnings per share compared to $1.29 in the previous year.

Magna stock boasts a dividend of $0.35 per share, representing a 2% dividend yield.

Maple Leaf Foods Inc. (TSX:MFI) is a Toronto-based packaged-meats company. In September, I’d covered rising food prices and discussed whether or not Maple Leaf Foods was a good buy going forward. Sales in the food industry dropped 1% to $8.4 billion in September 2017.

Maple Leaf Foods released its third-quarter results on October 26. Sales jumped 6.6% to $908.4 million, and net earnings increased 18.2% to $37.6 million. The company was happy to report solid earnings, even with a spike in raw material costs.

The stock offers a dividend of $0.11 per share with a 1.3% dividend yield. The company has committed to a solid strategy in branching into vegetarian products, making it an attractive long-term hold.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. Magna is a recommendation of Stock Advisor Canada.

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