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.
