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Dividend.com has added an industrial manufacturer to the Best Dividend Stocks List and removed a community bank from the list.

It’s no secret that America’s manufacturing base is humming along. Thanks to increasing global demand, lowered taxes and rising economic growth, the boring old industrials are once again considered “hot money.” And a re-added former Best Dividend Stocks List member is ready to take advantage of this.

After being removed only a month ago, our former industrial pick is back on the prowl with strong sales records and a much-improved guidance situation. The threat of a global trade war hasn’t seemed to affect our pick in any way.

That improved sales picture stems from its expertise in aerospace engineering, both in the commercial and defense segments. Here, our pick continues to see double-digit growth and a massive backlog of future sales activity. Meanwhile, its plans for some game-changing M&A have continued to progress nicely. Those plans will only strengthen its dominance in aerospace even further.

All of this will continue to translate into rising dividend growth and profits down the road – one of the reasons we were attracted to our pick the first time.

To summarize, here are five reasons why you should own this stock:

  1. Continues to see high free cash flow generation benefiting its dividend growth. Our pick has grown its dividend payout by more than 32% over the last five years.
  2. Mega-merger will make the pick the top play in the digital aerospace and Industrial Internet of Things (IIoT) market.
  3. Re-upped its revenue guidance to nearly $64 billion this year on improved organic growth of nearly 6%.
  4. Global product portfolio spanning government and private clients in a variety of industrial markets.
  5. Healthy payout ratio of 38% and growing yield of 2.08%.

Check out our original pick here.

Removal of a Community Bank from the Best Dividend Stocks List

Despite rising rates, we are forced to remove a smaller community bank from our Best Dividend Stocks List to make room for our re-added industrial pick. While this bank is a relatively new addition, poor earnings growth and lowered guidance have zapped much of investor enthusiasm for the bank. Stalled dividend growth has not helped either. With that, its overall DARS score has suffered and, despite being a growing bank, it’s failed to live up to its potential. And given the strength of our industrial pick, it’s time to say goodbye to our community bank pick.

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