Industrial Stocks Caterpillar and WM Offer Reliable Dividend Income

Investors looking for reliable dividend income may want to consider industrial stocks like Caterpillar and Waste Management.

Caterpillar, known for its heavy machinery, has seen increased business from data center operators seeking secure power sources. The company's revenue in the second quarter was $20.5 billion, up 24% from a year ago, with an operating profit margin of 20.9%. Caterpillar returned $2.2 billion to shareholders in the quarter, including $700 million in dividends.

Caterpillar stock is up 43% this year and pays a dividend of $6.52 per share, but the yield is relatively small at 0.8%. Despite this, the company has increased its dividend for 32 consecutive years, with the dividend growing nearly 47% over the last five years.

Waste Management operates a network of landfills, transfer stations, and recycling facilities, handling medical and hazardous waste to residential and commercial refuse. The company sees a huge opportunity in the recycling market in the U.S. and Canada, with a total market opportunity of $130 billion in the two countries.

Revenue in the second quarter was $6.68 billion, up from $6.43 billion a year ago, with net income of $785 million and $1.95 per share. Waste Management returned $1.04 billion to shareholders in the quarter, including $379 million in dividends.