The oil price recovery and strong economic momentum have benefited the materials sector with companies involved in steel, chemicals and mining. Hence an eye toward macroeconomic factors, such as demand for commodities, is necessary when investing in the materials sector. Another key driver of a materials company’s profit is the commodity prices which in turn steers the level of dividend payouts and yield. As a long term investor, I favour these materials stocks with great dividend payments that continues to add value to my portfolio.
MACA Limited (ASX:MLD)
MLD has a large dividend yield of 5.46% and has a payout ratio of 65.59% . The company’s 5.46% dividend is both above the low risk savings rate and among the markets top payers.
Amcor Limited (ASX:AMC)
AMC has a sizeable dividend yield of 3.65% and pays out 83.35% of its profit as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $0.34 to $0.43. Over the next three years, analysts predict double digit earnings growth for Amcor of 50.58%.
Rio Tinto Limited (ASX:RIO)
RIO has a great dividend yield of 5.80% and distributes 64.45% of its earnings to shareholders as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $1.16 to $3.0134.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.