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The Industrials sector contains companies that produce goods used in construction, manufacturing, and transportation. Main sub-sectors include aerospace, machinery, and transportation. Examples of companies in this sector are General Electric, Eaton Corporation, and Raytheon Technologies.
A Canadian investor may seek exposure to the Industrials sector for diversification, as it encompasses a broad range of industries. This sector can also be attractive based on macroeconomic trends, such as infrastructure development.
Canadian investors should consider balance-sheet quality and competitive moat when picking individual stocks in the Industrials sector. A company's ability to maintain a strong balance sheet and withstand economic cycles is crucial.
The Canadian tax considerations for Industrials stocks suggest that a TFSA is the tax-optimal account for this sector. Since the Canadian dividend tax credit does not apply in a TFSA, investors should focus on the capital gains tax implications, where only half of the gain is added to taxable income.
Caterpillar (CAT) — manufactures heavy equipment and machinery for construction, mining, and other industries. General Electric (GE) — produces a wide range of industrial products, including aircraft engines, power generation equipment, and renewable energy systems.
TFSA — Industrials combine cyclical growth (Caterpillar, GE) with moderate dividends — a TFSA shelters the appreciation from tax.
The industrials sector in Canada comprises a diverse range of companies, including those involved in transportation, logistics, and manufacturing. Some notable industrials stocks listed in Canada are from the rail and air transportation industries.
In the Industrials sector, Canadian dividend taxation is more favorable in a non-registered account due to the dividend tax credit, which reduces the tax payable on eligible Canadian dividends. For U.S.
For Canadian investors interested in the Industrials sector, buying individual stocks can provide targeted exposure to specific companies, but it also increases risk if one company underperforms. A sector ETF, on the other hand, offers diversification across various industrials companies, potentially reducing risk.
ETFs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
CA CAT Caterpillar Inc. | Industrials | NYSE | +240 | $426.6B | US$926.18 | +156.5% | 43.66 | 0.69% | 1.63 | |
GE GE GE Aerospace | Industrials | NYSE | +179 | $328.3B | US$314.64 | +26.3% | 40.17 | 0.58% | 1.35 | |
GE GEV GE Vernova Inc. | Industrials | NYSE | +208 | $257.8B | US$959.36 | +123.3% | 28.33 | 0.21% | 1.31 | |
RT RTX RTX Corporation | Industrials | NYSE | +188 | $232.4B | US$172.55 | +34.0% | 33.64 | 1.54% | 0.30 | |
BA BA The Boeing Company | Industrials | NYSE | +140 | $166.0B | US$210.58 | +9.1% | 91.73 | — | 1.21 | |
ET ETN Eaton Corporation plc | Industrials | NYSE | $163.6B | US$421.21 | +20.6% | 39.20 | 1.10% | 1.24 | ||
DE DE Deere & Company | Industrials | NYSE | +161 | $158.8B | US$588.29 | +5.3% | 30.67 | 1.20% | 0.97 | |
UN UNP Union Pacific Corporation | Industrials | NYSE | +179 | $155.6B | US$262.13 | +21.6% | 21.60 | 2.10% | 0.99 | |
HO HON Honeywell International Inc. | Industrials | NASDAQ | +170 | $141.5B | US$223.26 | +8.6% | 38.00 | 2.00% | 0.81 | |
LM LMT Lockheed Martin Corporation | Industrials | NYSE | +171 | $118.1B | US$512.03 | +15.1% | 25.71 | 2.60% | 0.10 | |
CP CP.TO Canadian Pacific Kansas City Limited | Industrials | TSX | +61 | $109.9B | $123.84 | +7.8% | 27.48 | 0.77% | 1.22 | |
PW PWR Quanta Services, Inc. | Industrials | NYSE | +173 | $107.4B | US$715.67 | +113.8% | 98.03 | 0.06% | 1.24 | |
PH PH Parker-Hannifin Corporation | Industrials | NYSE | +148 | $107.3B | US$850.76 | +30.5% | 31.16 | 0.95% | 1.18 | |
TT TT Trane Technologies plc | Industrials | NYSE | $103.0B | US$465.84 | +4.2% | 34.48 | 0.93% | 1.26 | ||
CN CNR.TO Canadian National Railway Company | Industrials | TSX | +82 | $100.7B | $165.97 | +11.7% | 21.51 | 2.24% | 0.99 | |
HW HWM Howmet Aerospace Inc. | Industrials | NYSE | +144 | $99.5B | US$248.63 | +52.4% | 59.92 | 0.19% | 1.19 | |
CM CMI Cummins Inc. | Industrials | NYSE | +195 | $94.2B | US$682.33 | +100.5% | 33.56 | 1.24% | 1.27 | |
GD GD General Dynamics Corporation | Industrials | NYSE | +163 | $91.1B | US$337.04 | +25.5% | 21.84 | 1.76% | 0.34 | |
JC JCI Johnson Controls International plc | Industrials | NYSE | $89.7B | US$146.96 | +38.5% | 41.00 | 1.19% | 1.39 | ||
WM WM Waste Management, Inc. | Industrials | NYSE | +165 | $87.5B | US$218.00 | -7.2% | 30.60 | 1.67% | 0.49 | |
CS CSX CSX Corporation | Industrials | NASDAQ | +173 | $86.3B | US$46.44 | +47.9% | 27.77 | 1.24% | 1.24 | |
UP UPS United Parcel Service, Inc. | Industrials | NYSE | +156 | $81.1B | US$108.67 | +9.0% | 17.26 | 6.15% | 1.05 | |
CP CP Canadian Pacific Kansas City Limited | Industrials | NYSE | +61 | $79.1B | US$89.12 | +7.8% | 27.65 | 0.78% | 1.22 | |
MM MMM 3M Company | Industrials | NYSE | +139 | $79.1B | US$151.65 | +3.4% | 29.50 | 2.04% | 1.09 | |
EM EMR Emerson Electric Co. | Industrials | NYSE | +151 | $78.9B | US$140.88 | +14.4% | 33.37 | 1.54% | 1.25 | |
FD FDX FedEx Corporation | Industrials | NYSE | +145 | $77.4B | US$324.46 | +85.0% | 21.98 | 1.41% | 1.30 | |
NO NOC Northrop Grumman Corporation | Industrials | NYSE | +158 | $74.7B | US$526.06 | +19.0% | 17.67 | 1.67% | -0.11 | |
CN CNI Canadian National Railway Company | Industrials | NYSE | +50 | $72.5B | US$119.45 | +10.8% | 21.63 | 2.27% | 0.99 | |
IT ITW Illinois Tool Works Inc. | Industrials | NYSE | +144 | $72.0B | US$250.26 | +4.9% | 22.94 | 2.60% | 1.05 | |
CT CTAS Cintas Corporation | Industrials | NASDAQ | +176 | $69.9B | US$174.72 | -23.2% | 36.13 | 1.05% | 0.96 | |
NS NSC Norfolk Southern Corporation | Industrials | NYSE | +115 | $68.5B | US$305.11 | +30.8% | 25.71 | 1.77% | 1.29 | |
TD TDG TransDigm Group Incorporated | Industrials | NYSE | +120 | $67.8B | US$1,211.57 | -10.9% | 39.21 | — | 0.88 | |
UR URI United Rentals, Inc. | Industrials | NYSE | +125 | $66.2B | US$1,056.58 | +32.2% | 25.45 | 0.79% | 1.83 | |
FI FIX Comfort Systems USA, Inc. | Industrials | NYSE | +136 | $65.1B | US$1,850.04 | +284.7% | 52.91 | 0.14% | 1.71 | |
RS RSG Republic Services, Inc. | Industrials | NYSE | +142 | $62.8B | US$204.20 | -17.4% | 28.72 | 1.25% | 0.44 | |
GW GWW W.W. Grainger, Inc. | Industrials | NYSE | +137 | $60.6B | US$1,284.22 | +15.5% | 33.22 | 0.75% | 1.04 | |
PC PCAR PACCAR Inc | Industrials | NASDAQ | +153 | $60.2B | US$114.38 | +18.0% | 23.48 | 1.27% | 1.03 | |
RE RELX RELX PLC | Industrials | NYSE | $58.1B | US$32.90 | -40.8% | 21.86 | 2.80% | 0.26 | ||
LH LHX L3Harris Technologies, Inc. | Industrials | NYSE | +138 | $56.5B | US$303.45 | +28.5% | 34.26 | 1.59% | 0.75 | |
CA CARR Carrier Global Corporation | Industrials | NYSE | +126 | $56.1B | US$67.58 | -11.9% | 42.58 | 1.50% | 1.38 | |
FA FAST Fastenal Company | Industrials | NASDAQ | +166 | $53.3B | US$46.46 | +7.3% | 39.12 | 2.08% | 0.74 | |
WC WCN.TO Waste Connections, Inc. | Industrials | TSX | +43 | $53.3B | $209.62 | -20.2% | 36.22 | 0.94% | 0.54 | |
AM AME AMETEK, Inc. | Industrials | NYSE | +123 | $52.3B | US$228.23 | +25.4% | 34.12 | 0.60% | 1.03 | |
DA DAL Delta Air Lines, Inc. | Industrials | NYSE | +128 | $51.8B | US$78.78 | +56.6% | 12.04 | 0.91% | 1.25 | |
RO ROK Rockwell Automation, Inc. | Industrials | NYSE | +154 | $51.4B | US$461.73 | +46.9% | 46.94 | 1.22% | 1.56 | |
TR TRI.TO Thomson Reuters Corporation | Industrials | TSX | +34 | $50.6B | $115.91 | -55.7% | 24.85 | 3.01% | 0.20 | |
OD ODFL Old Dominion Freight Line, Inc. | Industrials | NASDAQ | +129 | $49.1B | US$236.06 | +29.5% | 46.91 | 0.52% | 1.17 | |
FE FER Ferrovial N.V. | Industrials | NASDAQ | — | $47.6B | US$66.39 | +31.9% | 49.64 | 2.44% | 0.80 | |
WA WAB Westinghouse Air Brake Technologies Corporation | Industrials | NYSE | +122 | $44.6B | US$262.78 | +27.1% | 36.89 | 0.47% | 0.97 | |
FE FERG Ferguson Enterprises Inc. | Industrials | NYSE | +106 | $43.8B | US$226.09 | +24.4% | 22.22 | 1.58% | 1.20 |