These 2 Dividend Stocks Are Worth More of Your Money -- Starting Now

The recent sell-off across many technology stocks is a reminder that investors should always try to diversify their portfolios. There are fantastic companies across almost every stock market sector that are worthy of your hard-earned capital.

In the industrial sector, there are two dividend stocks in particular that stand out for their robust competitive advantages, healthy and growing dividends, and bright futures. Both are excellent buy-and-hold ideas for investors looking to put money to work.

1. RTX

The U.S. military will need to replenish its arsenal over the coming years following the war in Iran. RTX (NYSE: RTX) is the parent company of Raytheon, a leading defense contractor. It develops and sells various weapons and technology systems to the U.S. government and its allies, including the famed Tomahawk cruise missile, which is launched from ships or submarines.

RTX is also a major player in aviation engines and control systems via its other two units, Collins Aerospace and Pratt & Whitney. Selling jet and plane engines locks in years of revenue from the resulting service and maintenance. RTX currently pays a dividend yielding 1.4% and is well-funded, with only 40% of the company's estimated 2026 earnings going towards the payout.

Quality companies don't typically come cheap, and RTX is no exception. Shares currently trade at over 27 times 2026 earnings estimates. That said, RTX's valuation seems fair, given analysts' estimates of 10% annual earnings growth over the next three to five years. RTX is a classic example of a great business at a fair price, and there's nothing wrong with putting money into that.

2. WM

Garbage is such a boring business that it's easy to underappreciate the former Waste Management's, now WM's, (NYSE: WM) wide moat. WM operates the largest landfill network in the United States. It's difficult for a competitor to challenge WM because you can't just put a landfill anywhere; it's a regulatory nightmare.

Beyond that, garbage never stops flowing, so WM has been a very steady business for several decades. Management has paid and raised the company's dividend for 23 consecutive years. There's plenty of room to extend that streak because the payout ratio is only 46% of Waste Management's 2026 earnings estimates.

As with RTX, Wall Street has a ton of respect for WM, which shows in the stock's valuation. Shares currently trade at 28 times earnings estimates.

The good news? Analysts are calling for annualized earnings growth of 11% to 12% over the next three to five years. It's enough to make WM's valuation a fair value and the stock a solid buy today.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends RTX. The Motley Fool recommends WM. The Motley Fool has a disclosure policy.