A favourable economic condition has been a large driver of growth for companies in the materials industry. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust demand for commodities. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.
Brickworks Limited (ASX:BKW)
BKW has a nice dividend yield of 3.40% and their payout ratio stands at 43.28% , with analysts expecting a 48.47% payout in the next three years. BKW’s last dividend payment was AU$0.52, up from it’s payment 10 years ago of AU$0.39. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Brickworks’s earnings per share growth of 70.11% over the past 12 months outpaced the au basic materials industry’s average growth rate of -2.41%. More on Brickworks here.
Mineral Resources Limited (ASX:MIN)
MIN has a sizeable dividend yield of 3.22% and their current payout ratio is 48.35% . While there’s been some level of instability in the yield, MIN has overall increased DPS over a 10 year period from AU$0.14 to AU$0.58. Over the next 12 months, analysts are predicting double digit earnings growth of 63.58%. Interested in Mineral Resources? Find out more here.
Adelaide Brighton Limited (ASX:ABC)
ABC has a sizeable dividend yield of 3.88% and is distributing 73.22% of earnings as dividends , with analysts expecting this ratio in three years to be 82.15%. While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Dig deeper into Adelaide Brighton here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.