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Hedge Your Bet With These Materials Dividend Payers

Donald Bartholomew

The oil price recovery and strong economic momentum have benefited the materials sector with companies involved in steel, chemicals and mining. Thus, there is ample opportunity to take advantage of improving economic conditions which has led to strong demand for commodities. 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.

Westlake Chemical Partners LP (NYSE:WLKP)

WLKP has a great dividend yield of 6.88% and pays 72.74% of it’s earnings as dividends , with analysts expecting a 88.31% payout in the next three years. Besides the potential capital gains, WLKP’s yield alone is better than the low risk savings rate. Plus, a 6.88% yield places it amidst the market’s top dividend payers. More on Westlake Chemical Partners here.

NYSE:WLKP Historical Dividend Yield May 27th 18

P. H. Glatfelter Company (NYSE:GLT)

GLT has a good dividend yield of 3.01% with a generous payout ratio . In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$0.36 to US$0.52. They have been consistent too, not missing a payment during this 10 year period. Analysts are expecting an impressive triple digit earnings growth over the next year. More on P. H. Glatfelter here.

NYSE:GLT Historical Dividend Yield May 27th 18

Schnitzer Steel Industries, Inc. (NASDAQ:SCHN)

SCHN has a sizeable dividend yield of 2.50% and is distributing 22.02% of earnings as dividends , with analysts expecting this ratio to be 25.59% in the next three years. SCHN’s last dividend payment was US$0.75, up from it’s payment 10 years ago of US$0.068. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Schnitzer Steel Industries’s earnings per share growth of 153.14% outpaced the us metals and mining industry’s 48.83% average growth rate over the last year. More detail on Schnitzer Steel Industries here.

NasdaqGS:SCHN Historical Dividend Yield May 27th 18

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.