The materials industry is deeply cyclical with producers benefiting highly during an economic boom and many players going bankrupt in a bust. 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. Below is my list of huge dividend-paying stocks in the materials industry that continues to add value to my portfolio holdings.
Mineral Resources Limited (ASX:MIN)
MIN has a solid dividend yield of 3.53% and has a payout ratio of 50.16% , with the expected payout in three years being 50.97%. While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $0.095 to $0.66. The company also looks promising for it’s future growth, with analysts expecting an earnings per share increase of 55.43% over the next three years. More detail on Mineral Resources here.
Adelaide Brighton Limited (ASX:ABC)
ABC has a wholesome dividend yield of 3.61% and is currently distributing 73.02% of profits to shareholders , with analysts expecting a 75.55% payout in the next three years. While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. More detail on Adelaide Brighton here.
Fortescue Metals Group Limited (ASX:FMG)
FMG has an alluring dividend yield of 9.02% and has a payout ratio of 51.33% , with analysts expecting a 60.36% payout in three years. FMG’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 recorded earnings growth of 112.70% in the past year, comparing favorably with the au metals and mining industry average of 7.36%. More on Fortescue Metals Group here.
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.