A favourable economic condition has been a large driver of growth for companies in the materials industry. Thus, there is ample opportunity to take advantage of improving economic conditions which has led to strong 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.
Supremex Inc. (TSX:SXP)
SXP has a great dividend yield of 7.12% and is currently distributing 61.02% of profits to shareholders . Despite SXP’s last payment of CA$0.26 being lower than their dividend per share 10 years ago of CA$1.15, the company has been reliable in its payout to shareholders, not missing a payment during this time. When we compare Supremex’s PE ratio with its industry, the company appears favorable. The CA Forestry industry’s average ratio of 11.2 is above that of Supremex’s (8.9). Interested in Supremex? Find out more here.
Acadian Timber Corp. (TSX:ADN)
ADN has a sumptuous dividend yield of 5.79% and is distributing 65.62% of earnings as dividends , with analysts expecting this ratio to be 118.01% in the next three years. Despite there being some hiccups, dividends per share have increased during the past 10 years. Acadian Timber’s earnings per share growth of 71.35% outpaced the ca forestry industry’s 64.62% average growth rate over the last year. More on Acadian Timber here.
Lucara Diamond Corp. (TSX:LUC)
LUC has a juicy dividend yield of 4.95% and is paying out 51.67% of profits as dividends , and analysts are expecting a 56.59% payout ratio in the next three years. 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 4.95% yield places it amidst the market’s top dividend payers. More on Lucara Diamond 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.