QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)

Manufacturing Stocks List

This page shows information about the 35 largest manufacturing stocks including Inphi, Kadmon, Cantaloupe, and CoreCard. Learn more about manufacturing stocks.

Inphi logo

#1 - Inphi

NYSE:IPHI
Stock Price: $172.27
Market Cap: $9.25 billion
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Kadmon logo

#2 - Kadmon

NYSE:KDMN
Stock Price: $9.50
Market Cap: $1.70 billion
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Kadmon is a clinical-stage biopharmaceutical company that discovers, develops and delivers transformative therapies for unmet medical needs. Its clinical pipeline includes treatments for immune and fibrotic diseases as well as immuno-oncology therapies.
Cantaloupe logo

#3 - Cantaloupe

NASDAQ:USAT
Stock Price: $6.80 (+$0.04)
Market Cap: $483.34 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Cantaloupe, Inc. is a software and payments company, which engages in the provision of end-to-end technology solutions for the unattended retail market. It offers Internet of Things (IoT) and machine-to-machine (M2M) services, which include the ability to remotely monitor, control, and report on the results of distributed assets containing the electronic payment solutions. The company was founded by George Raymond Jensen Jr. in January 1992 and is headquartered in Malvern, PA.
CoreCard logo

#4 - CoreCard

NYSE:INS
Stock Price: $0.00
Market Cap: $349.35 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
CoreCard Corp. engages in the management of emerging technology companies. It operates through CoreCard Software, Inc. and affiliate companies, which are involved in the design, development, and marketing of software solutions to corporations, financial institutions, retailers, and processors to manage credit and debit cards, prepaid cards, private label cards, fleet cards, loyalty programs, and accounts receivable and small loan transactions. The company was founded in 1973 and is headquartered in Norcross, GA.
CRH Medical logo

#5 - CRH Medical

NYSE:CRHM
Stock Price: $3.99
Market Cap: $285.76 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
IEC Electronics logo

#6 - IEC Electronics

NYSE:IEC
Stock Price: $15.34
Market Cap: $162.97 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
IEC Electronics is a provider of electronic manufacturing services ('EMS') to advanced technology companies that produce life-saving and mission critical products for the medical, industrial, and aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing electronics, interconnect solutions, and precision metalworking. As a full service EMS provider, IEC holds all appropriate certifications for the market sectors it supports including ISO 9001:2015, AS9100D, ISO 13485, and is Nadcap accredited. IEC Electronics is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM.
FBR & Co. logo

#7 - FBR & Co.

NASDAQ:FBRC
Stock Price: $17.55
Market Cap: $124.61 million
Dividend Yield: 4.52%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
FBR & Co. is an investment banking and institutional brokerage company. The Company focuses on the equity capital markets. The Company operates through two segments: capital markets, which includes investment banking, institutional brokerage and research, and principal investing. Through its broker-dealer operating subsidiaries, the Company focuses its business on providing: capital raising services, including underwriting and placement of public and private equity, equity-linked and debt securities; financial advisory services, including merger and acquisition (M&A) advisory, restructuring, liability management, recapitalization and strategic alternative analysis; institutional sales and trading services focused on equities, equity-linked securities, listed options, high-yield bonds, senior debt and bank loans, as well as securities lending activities, and differentiated securities research.

#8 - Orbital Energy Group

NASDAQ:OEG
Stock Price: $0.00
Market Cap: $55.87 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Orbital Infrastructure Group, Inc. engages in the acquisition, development and commercialization of electro-mechanical products and technologies worldwide. It operates through the following segments: Electric Power, Telecommunications and Renewables. The Electric Power segment provides comprehensive infrastructure solutions to customers in the electric power industry. The Telecommunications segment provides enterprise solutions to the cable and telecommunication industries. The Renewables segment focuses on utility-scale solar construction. The company was founded on April 21, 1998 and is headquartered in Houston, TX.
LadRx logo

#9 - LadRx

NASDAQ:CYTR
Stock Price: $0.00
Market Cap: $4.14 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
LadRx Corp. is a biopharmaceutical research and development company, which engages in the discovery, research, and clinical development of novel anti-cancer drug candidates. It focuses on developing the Linker Activated Drug Release (LADR) technology platform, a discovery engine to help create a pipeline of anti-cancer molecules that will avoid unacceptable systemic toxicity while delivering highly potent agents directly to the tumor. The company was founded in 1985 and is headquartered in Los Angeles, CA.
Velodyne Lidar logo

#10 - Velodyne Lidar

NASDAQ:VLDRW
Stock Price: $0.32
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Second Sight Medical Products logo

#11 - Second Sight Medical Products

NASDAQ:EYESW
Stock Price: $0.03
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
ToughBuilt Industries, Inc. WT EXP 110923 logo

#12 - ToughBuilt Industries, Inc. WT EXP 110923

NASDAQ:TBLTW
Stock Price: $0.01 (+$0.00)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
ToughBuilt Industries Inc. is an advanced product design, manufacturer and distributor with emphasis on innovative products. Currently focused on tools and other accessories for the professional and do-it-yourself construction industries. The Company markets and distributes various home improvement and construction product lines for both the do-it-yourself and professional markets under the TOUGHBUILT brand name, within the global multibillion dollar per year tool market industry. All of its products are designed by its in-house design team. Since launching product sales in 2013, the company has experienced significant annual sales growth. Its current product line includes three major categories, with several additional categories in various stages of development, consisting of Soft Goods & Kneepads and Sawhorses & Work Products. Its mission is to provide products to the building and home improvement communities that are innovative, of superior quality derived in part from enlightened creativity for its end users while enhancing performance, improving well-being and building high brand loyalty.
Entera Bio Ltd. WT EXP 062723 logo

#13 - Entera Bio Ltd. WT EXP 062723

NASDAQ:ENTXW
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Stanley Black & Decker logo

#14 - Stanley Black & Decker

NYSE:SWT
Stock Price: $51.06 (-$1.51)
Dividend Yield: 4.75%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Exchange Income logo

#15 - Exchange Income

NYSE:EIF
Stock Price: $0.00
Consensus Rating: Buy (1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $65.00

#16 - Switchback II

NYSE:SWBKU
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Sharing Economy International I logo

#17 - Sharing Economy International I

NASDAQ:CLNT
Stock Price: $9.38
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Sharing Economy International, Inc. develops technologies, products and services with a view to minimise pollution and wastage to protect the environment. It operates through the following segments: Dyeing and Finishing Equipment and Sharing Economy. The Dyeing and Finishing Equipment segment involves in the manufacture and sell of textile dyeing and finishing machines. The Sharing Economy segment targets the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. The company was founded by Jian Hua Wu in 1987 and is headquartered in Hong Kong.
Electrameccanica Vehicles Corp. WT EXP 080323 logo

#18 - Electrameccanica Vehicles Corp. WT EXP 080323

NASDAQ:SOLOW
Stock Price: $0.01 (-$0.00)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
more than 83% of canadian commuters drive alone in vehicles not ideally suited for this purpose. this results in roadway congestion, higher fuel costs, and increased air pollution. electra meccanica's solo is the ideal commuter car that fits perfectly into your busy lifestyle being both good for you and the planet. designed by a world-class development team, it's modern aesthetics are matched by spirited performance and ultimate practicality. for more information about the solo, purchasing, investing, dealerships or scheduling a test drive, please get in touch at info@electrameccanica.com or by giving us a call at 1-604-428-7656 reserve yours now for only $250cad http://electrameccanica.com/reserve/ facebook: electrameccanica twitter: @electramecc instagram: electrameccanica
Check-Cap logo

#19 - Check-Cap

NASDAQ:CHEKZ
Stock Price: $0.01 (-$0.00)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

#20 - Parex Resources

NYSE:PXT
Stock Price: $0.00
Consensus Rating: Moderate Buy (1 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $30.80

#21 - Biotech Acquisition

NASDAQ:BIOTW
Stock Price: $0.01 (-$0.07)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
ENDRA Life Sciences logo

#22 - ENDRA Life Sciences

NASDAQ:NDRAW
Stock Price: $0.03
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

#23 - Ascent Solar Technologies

NASDAQ:ASTIW
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Medigus Ltd. WT C EXP 072323 logo

#24 - Medigus Ltd. WT C EXP 072323

NASDAQ:MDGSW
Stock Price: $0.02 (-$0.01)
Dividend Yield: 17.24%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Medigus is a medical device company specializing in developing minimally invasive endosurgical tools and highly innovative imaging solutions across medical and industrial applications.

#25 - Apollo Strategic Growth Capital II Units

NASDAQ:APGBU
Stock Price: $10.66
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Apollo Strategic Growth Capital II intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was formerly known as APH I (Sub I), Ltd. and changed its name to Apollo Strategic Growth Capital II in December 2020. Apollo Strategic Growth Capital II was incorporated in 2008 and is based in New York, New York.

#26 - MainstreamBPO

NYSE:MAI
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

#27 - Adial Pharmaceuticals, Inc. WT EXP 073123

NASDAQ:ADILW
Stock Price: $0.00 (-$0.00)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
adial pharmaceuticals is dedicated to personalized treatment for drug abuse and addiction. while our pipeline includes drug candidates for the treatment of opiate and amphetamine use, our two lead drug candidates are for the treatment of alcohol abuse. adial leverages its extensive knowledge of pharmacology and pharmacogenomics to change the paradigm of drug abuse treatment.

#28 - 4D pharma

NASDAQ:LBPSW
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

#29 - ACE Convergence Acquisition

NASDAQ:ACEVW
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Jupiter Wellness logo

#30 - Jupiter Wellness

NASDAQ:JUPWW
Stock Price: $1.06 (-$0.04)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
jupiter wellness, inc. operates as a hemp-derived cannabidiol (cbd) consumer product development company. it develops various therapeutic and medical use for cbd in the treatment of various ailment and diseases, such as cancer, arthritis, anxiety, insomnia, psoriasis, chronic pain, and others. the company markets cbd-infused sun care lotion formulas containing various sun protection factors under the canisun brand. it is also developing other products, such as cbd-infused skin care lotion under the caniskin brand; and dermatological treatments under the canidermrx brand. the company was formerly known as cbd brands, inc. jupiter wellness, inc. was founded in 2018 and is headquartered in jupiter, florida.

#31 - Inter Pipeline

NYSE:IPL
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

#32 - G Medical Innovations

NASDAQ:GMVDW
Stock Price: $0.04
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
G Medical Innovations Holdings Ltd, together with its subsidiaries, an early commercial stage healthcare company, engages in the development of next generation mobile health and telemedicine solutions in the United States, China, and Israel. The company's products include Prizma, a plug-and-play medical device that measures vital signs with electronic medical records functionality and clinical grade reporting standards; and Extended Holter Patch System, a multi-channel patient-worn biosensor that captures electrocardiogram data continuously for up to 14 days. It also develops Wireless Vital Signs Monitoring System, a solution that provides continuous real time monitoring of vital signs and biometrics. In addition, it offers monitoring services, including independent diagnostic testing facility monitoring and private monitoring services. The company was incorporated in 2014 and is based in Rehovot, Israel.
Fidelity Select Wireless logo

#33 - Fidelity Select Wireless

NASDAQ:FWRLX
Stock Price: $11.84 (-$0.04)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
indie Semiconductor logo

#34 - indie Semiconductor

NASDAQ:INDIW
Stock Price: $1.26 (-$0.04)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
indie designs and manufactures custom, microcontroller-based chips, using arm cores. we replace most of the contents of a printed circuit board with a single, optimal chip designed specifically for your application. this reduces the product cost, size and power compared with solutions based around standard, off-the-shelf components. reliability, manufacturability and security are all increased. aside from its skills in mixed signal design, indie's strengths are the way we can stitch new designs together quickly and cheaply, allowing applications to get the benefits of system-on-chip technology without the normal downsides. we have multiple designs in production and ship volumes of million-plus units per month and are growing fast.
Immuron logo

#35 - Immuron

NASDAQ:IMRNW
Stock Price: $0.07
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Manufacturing Stocks Investing

Manufacturing is the process of turning raw materials into finished goods. Manufacturing can take the form of tools, machinery, chemical processing, and/or human labor. Manufacturing is considered a sub-sector for investors because the list of companies that manufacture goods and services overlaps several sectors of the economy.

For example, Hershey’s (NYSE: HSY) is a manufacturing stock because of the company’s automated process for making its signature confectionary products. But investors will also note that Tesla (NASDAQ: TSLA) is a manufacturing stock. However, the electric vehicle sector and the consumer discretionary sector behave very differently at different times.

Perhaps no industry illustrates the relationship between supply and demand like manufacturing. Manufacturing added to the cost of the raw materials used to calculate a company’s cost of goods sold (COGS). This additional value allows the company to charge a higher price for its finished products.

Best-in-class manufacturing companies seek ways to utilize the most efficient manufacturing techniques. These investments allow companies to produce more goods at a lower cost.

The manufacturing sector is one of the key drivers of job creation in a country’s economy. When activity is slowing down, it is typically a harbinger that the economy is weakening. It is also usually marked by companies issuing layoffs or hiring freezes. By contrast, when manufacturing activity picks up, it is generally a sign that the economy is growing. In these cycles, manufacturing companies typically contribute to that growth by hiring more workers.

Monthly economic reports give investors clues about the strength of the manufacturing sector. One of the most closely watched reports is the Institute for Supply Management (ISM) Manufacturing Index, this is known as the purchasing managers’ index (PMI). This is a monthly forecast of manufacturing sentiment based on a survey of purchasing managers at over 300 companies. A related survey is the S&P Manufacturing and Services PMI.

Both reports give investors a sense of the economy’s direction. A reading above 50 generally signals that the economy is expanding. A number below 50 signals an economy that’s contracting. However, there are a couple of things that investors need to consider when assigning significance to this monthly reading

Look for Context - It’s always important to look at the reading in context with prior numbers. This is because these surveys are reporting on ordering activity that’s already taken place.

That makes these reports lagging indicators, meaning they give investors information about what’s already happened in the economy. So if the index shows a month-over-month decline it may not be showing up in the broader economy. The opposite is also true. If the index shows a month-over-month gain, it may not be reflected in the prices that consumers pay.

However, the stock market is always forward-looking. So lagging indicators such as manufacturing data can help confirm trends in the economy.

Look for Correlation - Another way to make sense of the monthly manufacturing data is to ensure it correlates with other economic reports. For example, if the Producers’ Price Index (PPI) is climbing you would expect manufacturing activity to slow down.

That’s because if it costs businesses more to get their raw materials, it will be more expensive for them to manufacture their goods. Although they will try to pass this cost along their supply chain to the end consumer, ultimately they may have to cut their output if consumer demand drops. 

On the other hand, if manufacturing output remain steady or growing even in the face of rising producer costs, it can signal that consumer demand remains strong even as they are facing higher prices.

Like many sectors, manufacturing stocks tend to do when the economy is performing well. When consumer demand is high, manufacturing activity tends to increase.

Also, when the economy is expanding, interest rates are generally stable, and perhaps falling. Lower borrowing costs allow companies to invest in the equipment necessary to upgrade their manufacturing infrastructure. This can make stocks such as Caterpillar (NYSE: CAT) more attractive.

However, that doesn’t mean that manufacturing stocks are bad investments when the economy is in decline. Some manufacturers are in more defensive sectors that can help them outperform the market because their products and services remain in demand. An example of this could be found in the agriculture sector. Regardless of what is happening in the broader economy, crops need to be planted, cultivated, and harvested on a regular schedule.

Defensive manufacturing stocks offer the additional benefit of pricing power. For example in the Covid-19 pandemic, commodity prices rose due to supply chain disruptions. As producer prices rose, the manufacturing stocks that performed the best were ones that were able to pass along its higher production costs. 

As you might expect, many manufacturing stocks pay a dividend. A dividend is simply a portion of a company’s profits that it pays out to shareholders in the form of a direct cash payment per share. Companies that pay dividends are typically in mature industries and manufacturing companies certainly fit that description.

That’s not to say that manufacturing companies don’t offer share price growth. And when the economy is sluggish, the dividend payment these companies offer will boost an investor’s total return to the point that they outperform growth stocks. But it’s fair to say that many of these stocks will not outperform the market when the economy is going well.

The qualities that investors should look for in manufacturing stocks that pay a dividend are the same as with any other sector. First, look at companies that have a strong balance sheet. Investors should also look for healthy cash flow and the potential for some growth. 

All of these factor into a company’s ability to issue a dividend and, in the best-case scenario, increase its dividend on an annual basis. And that is far more important to an investor than a company’s dividend yield or even its dividend payout.

3M (NYSE: MMM) is considered one of the best dividend stocks among manufacturing companies. The company has paid a dividend in each of the last 98 years and has increased its dividend the last 56 years. This puts the company in the select group of companies known as Dividend Kings. When you consider everything that has happened in the economy over the past 98 years, an investor can’t help but be impressed with the fact that 3M has not failed to pay a dividend in every single quarter.

Caterpillar (NYSE: CAT) is an example of where upside matters. In 2020 and 2021, the company’s business was curtailed due to the Covid-19 pandemic. However, the passage of the infrastructure bill in late 2021 is spurring growth in revenue and earnings. As of August 2022, Caterpillar’s dividend yield is just above 2% which isn’t all that attractive. However, the company continued to increase its dividend throughout the pandemic which means investors can expect the dividend to continue to grow and perhaps by a higher percentage over the next several years.

Large-cap and mid-cap manufacturing companies do offer investors the benefit of being well established and financially stable.  However, investors can find good small-cap manufacturing stocks. To begin with, many of today’s most iconic companies such as Amazon (NASDAQ: AMZN) started as small-cap stocks. And second, these stocks often sell for a lower price per share which can make them appealing for risk-tolerant investors.

The key to finding a quality small-cap manufacturing stock is to find companies that have a product that will continue to be in demand. There are many small-cap stocks that are considered manufacturing companies but they are in niche markets where they have limited hope for revenue growth. The dot-com bubble of the late 1990s and early 2000s showed the problem of investing in manufacturing companies simply because they checked one box no matter how enticing that box was.

Another problem may be company may be in the early stages of the manufacturing cycle and be losing money. This was the case in 2020 and 2021 as many companies in the electric vehicle sector went public despite being several years away from having meaningful revenue.

As you can see, manufacturing stocks come in different sizes and sectors. This means one of the best ways to invest in manufacturing stocks is to start with your investment objective. If you’re a growth-oriented investor, you will probably be more interested in technology stocks.

That doesn’t mean that you won’t get exposure to a manufacturing stock. For example, Apple (NASDAQ:AAPL) is, technically, a manufacturing stock. But investors who are buying AAPL stock are not doing so for that reason.

On the other hand income-oriented investors may look for utilities and real estate investment trusts (REITs). Neither of these sectors would include manufacturing stocks. However, as noted earlier in this article, investors can find great income-generating stocks such as 3M, also great manufacturing stocks.

Many investors prefer to invest in exchange-traded funds (ETFs) for all or a portion of their portfolio. ETFs offer the benefit of buying a basket of companies within a sector while spreading the risk that comes from owning any individual stock.

Because manufacturing stocks can be found in almost any sector, investors need to be a bit discerning when it comes to finding ETFs that provide exposure to manufacturing stocks.

One of the largest ETFs for investors looking for exposure to manufacturing stocks is the Industrial Select Sector SPDR Fund (NYSEARCA:XLI) which has over $13 billion in assets. Industrial companies typically have strong balance sheets and steady demand.

Another way to be a fund investor in the manufacturing sector is by focusing on specific sectors. For example, investors can still find manufacturing stocks in the technology sector. One such choice is the Technology Select Sector SPRD ETF (NYSEARCA:XLK).

 

Chris Markoch

About Chris Markoch

  • CTMarkoch@msn.com

Editor & Contributing Author

Retirement, Individual Investing

Experience

Chris Markoch has been an editor & contributing writer for MarketBeat since 2018.

Areas of Expertise

Value investing, retirement stocks, dividend stocks

Education

Bachelor of Arts, The University of Akron

Past Experience

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