A favourable economic condition has been a large driver of growth for companies in the materials industry. 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. If you’re a buy-and-hold investor, these healthy dividend stocks in the materials industry can generously contribute to your monthly portfolio income.
Labrador Iron Ore Royalty Corporation (TSX:LIF)
LIF has a sizeable dividend yield of 3.66% and pays 40.74% of it’s earnings as dividends , with analysts expecting a 119.02% payout in three years. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from $0.975 to $1 over the past 10 years. Labrador Iron Ore Royalty’s earnings per share growth of 209.42% over the past 12 months outpaced the ca metals and mining industry’s average growth rate of 45.80%.
Tahoe Resources Inc. (TSX:THO)
THO has a enticing dividend yield of 4.03% and the company currently pays out 74.91% of its profits as dividends . The company’s 4.03% dividend is both above the low risk savings rate and among the markets top payers. Tahoe Resources is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years.
Agrium Inc. (TSX:AGU)
AGU has a solid dividend yield of 2.44% and has a payout ratio of 87.50% . AGU’s last dividend payment was $3.5, up from it’s payment 10 years ago of $0.11. Much to the delight of shareholders, the company has not missed a payment during this time. Agrium is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years.
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.