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. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.
Schnitzer Steel Industries, Inc. (NASDAQ:SCHN)
SCHN has a good-sized dividend yield of 2.52% and is currently distributing 46.00% of profits to shareholders , with analysts expecting this ratio in three years to be 134.32%. In the case of SCHN, they have increased their dividend per share from $0.068 to $0.75 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Over the next three years, analysts predict double digit earnings growth for Schnitzer Steel Industries of 66.65%.
Mercer International Inc. (NASDAQ:MERC)
MERC has a wholesome dividend yield of 3.88% and is paying out 63.12% of profits as dividends . Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 3.88% yield places it amidst the market’s top dividend payers. Analysts are optimistic on the company’s earnings in the next 12 months, estimating a 51.33% increase in EPS.
Innophos Holdings, Inc. (NASDAQ:IPHS)
IPHS has a juicy dividend yield of 4.28% and is currently distributing 86.79% of profits to shareholders . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.68 to $1.92. The company has been a reliable payer too, not missing a payment during this time.
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.