3 Dividend-Paying Industrial Stocks to Buy in August

The semiconductor sector recently saw a $1.3 trillion wipeout, leaving many investors vulnerable.

Diversification helps make portfolios more robust, especially by owning the companies with the financial strength to keep boosting their dividend payouts.

Stanley Black & Decker, Emerson Electric, and Illinois Tool Works have each increased their payouts for more than 50 consecutive years.

The summer investing months are typically known for their sleepiness, with action picking up again in the final months to close out the year. But August is also a great time to do some portfolio review and maintenance.

As some may have experienced, the 20 most valuable chip stocks shed $1.3 trillion in value from July 24 to July 28, underscoring that portfolios can sometimes become too concentrated. Those owning Nvidia , Advanced Micro Devices , and Micron Technology during that chip sell-off may have seen their total portfolio quickly heading lower in value.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

While there's no such thing as a risk-free investment, Dividend Kings can help offer some portfolio protection, as well as provide diversification. For 50 or more consecutive years, those companies have increased their dividend payouts, no matter what the market throws at them or the state of the economy.

Three companies that have earned the Dividend King title are Stanley Black & Decker (NYSE: SWK) , Emerson Electric (NYSE: EMR) , and Illinois Tool Works (NYSE: ITW) .