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. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. I’ve made a list of other value-adding dividend-paying stocks in the materials industry for you to consider for your investment portfolio.
Synthomer plc (LSE:SYNT)
SYNT has a good-sized dividend yield of 2.30% and their payout ratio stands at 37.16% , with the expected payout in three years hitting 40.51%. Despite some volatility in the yield, DPS has risen in the last 10 years from £0.094 to £0.113.
Vedanta Resources plc (LSE:VED)
VED has an alluring dividend yield of 7.33% and a reasonably sustainable dividend payout ratio , with analysts expecting this ratio in three years to be 35.45%. 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. The company’s latest earnings per share figure was £-5.71, up 98.47% from the previous year.
RPC Group Plc (LSE:RPC)
RPC has a wholesome dividend yield of 2.77% and their payout ratio stands at 51.34% . The company’s dividends per share have risen from £0.086 to £0.244 over the last 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period.
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.