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. These materials stocks are also well-positioned to take advantage of rising commodity prices while offering an attractive dividend yield. As a long term investor, I favour these materials stocks with great dividend payments that continues to add value to my portfolio.
Anil Limited (BSE:532910)
532910 has a solid dividend yield of 3.46% and is paying out 1.88% of profits as dividends . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Anil seems reasonably priced when looking at its PE ratio (0.5). The industry average suggests that IN Chemicals companies are more expensive on average 23.1. Continue research on Anil here.
Narmada Gelatines Limited (BSE:526739)
526739 has a good-sized dividend yield of 2.74% and the company currently pays out 36.84% of its profits as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from ₹1.33 to ₹4.00. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. The company outperformed the in chemicals industry’s earnings growth of 26.89%, reporting an EPS growth of 111.28% over the past 12 months. More on Narmada Gelatines here.
Cosmo Films Limited (BSE:508814)
508814 has a decent dividend yield of 3.89% and pays out 27.63% of its profit as dividends . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from ₹5.00 to ₹10.00 over the past 10 years. Interested in Cosmo Films? Find out more 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.