2 top industrial stocks to buy on the ASX today

I think these two ASX industrials shares are looking pretty good.

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When looking for ASX stocks to buy, industrials are a sector that shouldn't be overlooked. It might not have the most exciting name. But there are many quality shares on the S&P/ASX 200 Industrials Index (ASX: XNJ) that have been delivering some impressive returns to investors for a long time.

So today, let's discuss two such industrial stocks that I think could be worth a look right now.

2 industrial stocks to buy on the ASX today

Transurban Group (ASX: TCL)

Are you someone who owns a car and lives in either Sydney, Melbourne or Brisbane? Chances are you're at least a semi-regular customer of Transurban. Transurban is a toll road operator that has an almost monopolistic stranglehold on the vast network of tolled roads across most of our major cities. It also owns several projects overseas, most notably in North America.

I like Transurban for its highly defensive nature. Most of the roads it owns are major arterial routes that have few alternatives for time-poor motorists. What's more, this company is usually allowed to increase its tolls every quarter to account for inflation.

We can see how this bears fruit by looking at the Transurban dividend. Last year, the company paid out a total of 52.5 cents per share in dividends to investors, a big rise over 2021's total of 36.5 cents. We don't yet know what 2023's interim dividend will come in at yet. But the 31.5 cent final dividend that we saw arrive in August was another big rise over 2022's payment of 26 cents per share.

Today, Transurban shares offer a trailing yield of 4.46%.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway Waste is another ASX industrial stock that I think is well worth a look as we barrel toward the end of 2023.

Waste management is an area that I believe will continue to grow in importance. Businesses, governments and individuals are only increasing their awareness of the importance of environmental sustainability. As the largest ASX-listed waste management company, Cleanaway is in a prime position to benefit from this trend.

I was encouraged by Cleanaway's full-year results for the 2023 financial year that we got a look at back in August. The company reported that its gross revenues rose by 18.4% over FY2022's numbers to $3.56 billion. Earnings before interest and tax (EBIT) were up 17.5% to $302.2 million.

If a business or a local or state government needs a contract for waste collection or recycling service, it's likely that Cleanaway will be one of the first names on the call list, thanks to its size and scale.

As such, I think this company will be a lot larger in 10 years' time than it is today and therefore makes for a great candidate if you're looking for stocks to buy as we head into 2024, in my view.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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