The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. Hence an eye toward macroeconomic factors, such as demand for commodities, is necessary when investing in the materials sector. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. If you’re a long term investor, these high-dividend materials stocks can boost your monthly portfolio income.
Deepak Fertilisers And Petrochemicals Corporation Limited (BSE:500645)
500645 has a wholesome dividend yield of 2.09% and the company currently pays out 27.37% of its profits as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from ₹3.00 to ₹6.00. Over the next 12 months, analysts are predicting double digit earnings growth of 46.47%. Interested in Deepak Fertilisers And Petrochemicals? Find out more here.
MOIL Limited (BSE:533286)
533286 has a good dividend yield of 3.07% and is paying out 54.13% of profits as dividends . 533286’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend payers. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years. Interested in MOIL? Find out more here.
Castrol India Limited (BSE:500870)
500870 has a good-sized dividend yield of 2.44% and their payout ratio stands at 67.95% , with the expected payout in three years hitting 74.68%. 500870’s dividends have increased in the last 10 years, with DPS increasing from ₹1.75 to ₹5.00. They have been dependable too, not missing a single payment in this time. More on Castrol India 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.