Certain sectors receive more positive attention from stock investors than others. That's only natural when things are going well.
Right now, with the buzz surrounding artificial intelligence (AI), technology stocks have been strong performers. The S&P 500 Information Technology sector's 17.5% gain this year (through June 12) has dwarfed the S&P 500 ex-Information Technology's 3.8% rise. Those kinds of gains may tempt investors, but technology stocks have always been volatile and challenging to pick out long-term winners.
For those looking for steadier, long-term stock price gains and regularly increasing dividends, these two industrial sector stocks below fit the bill. You may not see fast appreciation, but you'll do well over time from these solid companies. It's time to uncover why they deserve your investment.
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1. Lockheed Martin
Lockheed Martin (LMT +0.16%) develops and manufactures items like military aircraft, air and missile systems, military and civilian helicopters, and satellite systems. It primarily sells its product to the U.S. government (72% of 2025 sales).
The company is particularly reliant on the Department of Defense, which made up 63% of the company's total sales. That means Lockheed Martin's top line is sensitive to the government's defense spending, which gets approved through Congress. That may give some investors pause, given the ever-changing political whims. However, while defense spending varies, it's always a main part of the U.S. budget, including this year's more than $950 billion.
Lockheed Martin's first-quarter sales totaled $18 billion, edging up 0.3% from the previous year. But the tepid sales were influenced by certain delays, so that shouldn't scare you off. Management expects steady, if unspectacular, sales growth of 3% to 7% for the year, reaching $77.5 billion to $80 billion.
NYSE: LMT
Key Data Points
Shareholders can also look forward to receiving dividends that increase regularly. In fact, last October, the company announced that the board of directors approved an impressive 5% hike in the quarterly rate to $3.45 a share. This marked 23 straight years of increases. With a payout ratio of 65%, which compares dividends to earnings, investors can feel confident in Lockheed Martin's ability to pay dividends.
The stock has a 2.6% dividend yield, well above the S&P 500 index's 1.1%.
2. RTX
RTX (RTX -1.67%) was formed following the 2020 merger between Raytheon Company and United Technologies. The current business spans aerospace and defense manufacturing, including technologically advanced products, aircraft engines, and defense systems like missiles.
Sales to the U.S. government accounted for 38% of last year's sales, down from 46% in 2023. International customers accounted for 47% of sales in 2025. That sales mix provides some diversification.
While many large mergers fail to create value for shareholders, this one has done well. Since the deal's completion in April 2020, the shares returned 325.4%, including dividends, besting the S&P 500's 227.3%.
NYSE: RTX
Key Data Points
And that doesn't seem set to end. Importantly, RTX continues to post solid results. First-quarter sales, adjusted to remove the impact of acquisitions and foreign-currency translations, grew 10% compared to last year. Management expects a solid 5% to 6% growth for all of 2026.
Meanwhile, the combined company has raised dividends annually since the merger's completion. Most recently, RTX increased its quarterly dividend by a sharp 7.4% to $0.73 a share this month.
That's certainly a positive sign about management's confidence in the future. Aside from the willingness to reward shareholders with higher dividends, RTX also has the ability to fund dividends from earnings, with a payout ratio of 51%.
Along with potential capital appreciation, shareholders will receive an above-market dividend yield. At the new rate, RTX's shares provide a payout of 1.6%.
