Best dividend large-cap industrial stocks for 2025
Dividend-paying industrial giants offer an attractive combination of income stability and long-term growth potential, particularly within sectors driven by infrastructure, automation, and productivity. Large-cap companies in this space often benefit from strong balance sheets and consistent cash flows that support reliable dividend distributions.
Parker-Hannifin is a global leader in motion and control technologies, delivering innovation at scale while maintaining a history of dividend growth. Automatic Data Processing brings steady income generation from its essential payroll and HR services, while Dover Corporation's diversified manufacturing presence provides resilience across economic cycles. RPM International, known for its specialty coatings and sealants, rounds out the group with solid fundamentals and a strong shareholder return track record.
These companies stand out as some of the best dividend large-cap industrial stocks to consider for a stable and rewarding portfolio in 2025, offering both defensive value and long-term upside.
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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.
Now, let`s take a closer look at each of the companies:
Automatic Data Processing (ADP)
Automatic Data Processing (ADP) is a global leader in human capital management (HCM) solutions, offering payroll, HR, talent management, and benefits administration services. Founded in 1949 by Henry Taub in Paterson, New Jersey, ADP has grown into one of the most trusted names in business outsourcing and technology-driven workforce solutions. The company serves businesses of all sizes across multiple industries, providing cloud-based software and analytics to streamline workforce management.
With a strong emphasis on innovation, ADP integrates artificial intelligence, automation, and data-driven insights into its HCM solutions to enhance efficiency and compliance. Its comprehensive services range from payroll processing and tax compliance to workforce analytics and employee engagement tools. By continually evolving to meet the needs of modern businesses, ADP remains a market leader in transforming how organizations manage their employees and optimize productivity.
Automatic Data Processing financial statements
Analysts recommendation: 2.79
Financial Health
- Return on assets (ROA): 6.63%
- Return on equity (ROE): 76.29%
- Return on investment (ROI): 43.84%
Profitability
- Gross margin: 50.3%
- Operating margin: 26.25%
- Net profit margin: 19.79%
Growth
- EPS (past 5 years): 11.68%
- EPS (current): 9.77
- EPS estimate (next quarter): 2.23
- EPS growth (this year): 8.67%
- EPS growth (next year): 9.07%
- EPS growth (next 5 years): 8.77%
- EPS growth (quarter-over-quarter): 6.38%
- Sales growth (past 5 years): 6.3%
- Sales growth (quarter-over-quarter): 5.69%
💡 Why invest in Automatic Data Processing?
ADP's dominant position in the HR tech sector offers several potential advantages for investors seeking exposure to this essential industry:
- Essential Service: Payroll processing is a fundamental requirement for any business, making ADP's services crucial for smooth operations.
- Recurring Revenue Model: Companies rely on ADP's services month after month, translating to predictable and recurring revenue streams.
- Diversified Product Portfolio: Beyond payroll, ADP offers a comprehensive suite of HR solutions, reducing their dependence on any single service.
- Scalability: Their solutions cater to businesses of all sizes, ensuring a broad and scalable market reach.
🐌 Key considerations before investing in Automatic Data Processing
However, before investing in ADP, it's crucial to consider the potential challenges they face:
- Competition: The HR tech space is becoming increasingly competitive, with established players like Paychex and nimble startups vying for market share. Maintaining their technological edge and competitive pricing will be crucial.
- Regulation: ADP operates in a heavily regulated environment, and changes in labor laws or tax regulations can impact their services and compliance requirements.
- Economic Downturns: During economic downturns, businesses might cut back on discretionary HR expenses, potentially impacting ADP's revenue growth.
- Shifting HR Landscape: The way businesses manage HR is constantly evolving, and ADP must adapt to new technologies and workforce trends to stay relevant.
Final thoughts on Automatic Data Processing
ADP's strong brand recognition, vast experience, diversified product portfolio, and recurring revenue model paint a promising picture for long-term investors seeking exposure to the essential HR tech sector. However, the competitive landscape, regulatory environment, economic sensitivity, and the need to adapt to changing HR trends necessitate careful consideration. Thorough research on ADP's innovation pipeline, their strategies for navigating these challenges, a comparison with emerging HR tech companies, and a clear understanding of your risk tolerance are crucial before adding Automatic Data Processing to your portfolio. Remember, behind every successful company, there's a reliable HR system, and ADP has been powering those systems for decades. Their story could be a foundational investment in your journey.
Dover Corporation (DOV)
Dover Corporation is a diversified global manufacturer and solutions provider, offering innovative equipment, components, consumable supplies, software, digital solutions, and support services. Founded in 1955 and headquartered in Downers Grove, Illinois, the company operates through five segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies. In fiscal year 2024, Dover reported revenues of $7.75 billion, a 0.8% increase from the previous year, and net earnings of $2.7 billion, including gains from discontinued operations.
Dover's Engineered Products segment delivers equipment and software for markets such as vehicle aftermarket, aerospace, and industrial automation. The Clean Energy & Fueling segment provides safety and efficiency solutions for fueling and clean energy applications. The Imaging & Identification segment offers marking, coding, and digital printing solutions, while Pumps & Process Solutions focuses on fluid handling across various industries. Lastly, the Climate & Sustainability Technologies segment develops energy-efficient equipment for refrigeration, heating, and beverage packaging markets.
Dover Corporation financial statements
Analysts recommendation: 2
Financial Health
- Return on assets (ROA): 8.71%
- Return on equity (ROE): 17.45%
- Return on investment (ROI): 23.64%
Profitability
- Gross margin: 39.01%
- Operating margin: 17.07%
- Net profit margin: 28.85%
Growth
- EPS (past 5 years): 33.35%
- EPS (current): 16.6
- EPS estimate (next quarter): 2.38
- EPS growth (this year): 12.62%
- EPS growth (next year): 9.54%
- EPS growth (next 5 years): 9.83%
- EPS growth (quarter-over-quarter): -63.06%
- Sales growth (past 5 years): 2.14%
- Sales growth (quarter-over-quarter): -10.88%
💡 Why invest in Dover Corporation?
Dover Corporation offers several compelling reasons to consider investing:
- Diversified Business Portfolio: Dover's operations span multiple industries, reducing dependence on any single market and enhancing resilience.
- Strong Financial Performance: In 2024, Dover reported revenues of $7.75 billion and net earnings of $2.7 billion, reflecting consistent growth.
- Commitment to Innovation: The company invests in cutting-edge technologies and solutions across its segments, driving growth and competitiveness.
- Sustainable Practices: Dover emphasizes sustainability, offering energy-efficient products and solutions that align with global environmental trends.
🐌 Key considerations before investing in Dover Corporation
However, prospective investors should weigh the following challenges:
- Economic Sensitivity: Dover's performance is closely tied to global economic conditions, which can impact demand across its diversified industrial segments.
- Regulatory Risks: Operating in various countries, Dover is subject to diverse regulations, which can pose compliance challenges and affect operations.
- Integration Challenges: Managing and integrating acquisitions can be complex and may divert management attention from core operations.
- Competition: Dover faces strong competition from other established players in the industrial manufacturing sector, which can pressure margins and market share.
Final thoughts on Dover Corporation
Dover Corporation's diversified business model, strong financial performance, and commitment to innovation and sustainability position it well for sustained growth. While the company faces challenges such as economic sensitivity and regulatory risks, its strategic focus on operational excellence and market leadership provides a solid foundation for long-term success.
Dover Corporation (DOV)
Dover Corporation is a diversified global manufacturer and solutions provider, offering innovative equipment, components, consumable supplies, software, digital solutions, and support services. Founded in 1955 and headquartered in Downers Grove, Illinois, the company operates through five segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies. In fiscal year 2024, Dover reported revenues of $7.75 billion, a 0.8% increase from the previous year, and net earnings of $2.7 billion, including gains from discontinued operations.
Dover's Engineered Products segment delivers equipment and software for markets such as vehicle aftermarket, aerospace, and industrial automation. The Clean Energy & Fueling segment provides safety and efficiency solutions for fueling and clean energy applications. The Imaging & Identification segment offers marking, coding, and digital printing solutions, while Pumps & Process Solutions focuses on fluid handling across various industries. Lastly, the Climate & Sustainability Technologies segment develops energy-efficient equipment for refrigeration, heating, and beverage packaging markets.
Dover Corporation financial statements
Analysts recommendation: 2
Financial Health
- Return on assets (ROA): 8.71%
- Return on equity (ROE): 17.45%
- Return on investment (ROI): 23.64%
Profitability
- Gross margin: 39.01%
- Operating margin: 17.07%
- Net profit margin: 28.85%
Growth
- EPS (past 5 years): 33.35%
- EPS (current): 16.6
- EPS estimate (next quarter): 2.38
- EPS growth (this year): 12.62%
- EPS growth (next year): 9.54%
- EPS growth (next 5 years): 9.83%
- EPS growth (quarter-over-quarter): -63.06%
- Sales growth (past 5 years): 2.14%
- Sales growth (quarter-over-quarter): -10.88%
💡 Why invest in Dover Corporation?
Dover Corporation offers several compelling reasons to consider investing:
- Diversified Business Portfolio: Dover's operations span multiple industries, reducing dependence on any single market and enhancing resilience.
- Strong Financial Performance: In 2024, Dover reported revenues of $7.75 billion and net earnings of $2.7 billion, reflecting consistent growth.
- Commitment to Innovation: The company invests in cutting-edge technologies and solutions across its segments, driving growth and competitiveness.
- Sustainable Practices: Dover emphasizes sustainability, offering energy-efficient products and solutions that align with global environmental trends.
🐌 Key considerations before investing in Dover Corporation
However, prospective investors should weigh the following challenges:
- Economic Sensitivity: Dover's performance is closely tied to global economic conditions, which can impact demand across its diversified industrial segments.
- Regulatory Risks: Operating in various countries, Dover is subject to diverse regulations, which can pose compliance challenges and affect operations.
- Integration Challenges: Managing and integrating acquisitions can be complex and may divert management attention from core operations.
- Competition: Dover faces strong competition from other established players in the industrial manufacturing sector, which can pressure margins and market share.
Final thoughts on Dover Corporation
Dover Corporation's diversified business model, strong financial performance, and commitment to innovation and sustainability position it well for sustained growth. While the company faces challenges such as economic sensitivity and regulatory risks, its strategic focus on operational excellence and market leadership provides a solid foundation for long-term success.
RPM International (RPM)
RPM International Inc. is a global leader in specialty coatings and sealants, headquartered in Medina, Ohio. Founded in 1947, the company has expanded to become a major player in the coatings industry, with a broad portfolio of brands and products across multiple sectors. RPM International operates in more than 160 countries, serving customers in industries such as construction, automotive, and industrial manufacturing.
The company specializes in the development, production, and distribution of high-performance coatings, sealants, and related products. RPM International's brands include well-known names such as Rust-Oleum, Tremco, and DAP, offering solutions for both consumer and professional markets. With a strong commitment to innovation, sustainability, and product quality, RPM International continues to lead the way in providing coatings and sealants that enhance performance, durability, and aesthetics across a wide range of applications.
RPM International financial statements
Analysts recommendation: 2.12
Financial Health
- Return on assets (ROA): 9.86%
- Return on equity (ROE): 25.53%
- Return on investment (ROI): 12.66%
Profitability
- Gross margin: 41.09%
- Operating margin: 12.12%
- Net profit margin: 8.78%
Growth
- EPS (past 5 years): 17.81%
- EPS (current): 4.99
- EPS estimate (next quarter): 1.59
- EPS growth (this year): 4.91%
- EPS growth (next year): 8.23%
- EPS growth (next 5 years): 8.11%
- EPS growth (quarter-over-quarter): -14.89%
- Sales growth (past 5 years): 5.79%
- Sales growth (quarter-over-quarter): -3.05%
💡 Why invest in RPM International?
RPM International offers several potential advantages for investors seeking exposure to the building and construction materials industry:
- Diversified Product Portfolio: RPM operates across multiple segments, including consumer, construction, and industrial markets, reducing reliance on any single industry.
- Strong Brand Recognition: The company owns several well-known brands, such as Rust-Oleum, DAP, and Zinsser, enhancing market penetration.
- Global Reach: RPM has a global presence, enabling it to capitalize on growth opportunities in various regions.
- Consistent Dividend Growth: The company has a history of increasing dividends, making it attractive to income-oriented investors.
🐌 Key considerations before investing in RPM International
However, before investing in RPM, it's crucial to consider these potential challenges:
- Economic Sensitivity: The construction and industrial sectors can be cyclical, impacting demand for RPM's products.
- Competition: The coatings and sealants market is competitive, with both established players and new entrants vying for market share.
- Raw Material Costs: Fluctuations in the price of raw materials, such as resins and chemicals, can impact profitability.
- Regulatory Environment: Environmental regulations and safety standards can influence product development and costs.
Final thoughts on RPM International
RPM International's diversified product portfolio, strong brand recognition, and global reach make it an attractive investment for those seeking exposure to the building and construction materials industry. However, the cyclical nature of the industry, competition, raw material costs, and regulatory environment necessitate careful consideration. Thorough research on RPM's product innovation, market expansion plans, and financial performance is crucial before investing.
If you are interested in other stock categories, check out my other lists of the best dividend large-cap utility, tech, retail, industrial, healthcare, financial, energy, basic materials stocks.