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.
Tredegar Corporation (NYSE:TG)
TG has a decent dividend yield of 2.26% and pays 25.02% of it’s earnings as dividends . In the case of TG, they have increased their dividend per share from $0.16 to $0.44 so in the past 10 years. The company has been a reliable payer too, not missing a payment during this time. Tredegar’s earnings per share growth of 243.42% outpaced the us chemicals industry’s 13.71% average growth rate over the last year. Continue research on Tredegar here.
Innophos Holdings, Inc. (NASDAQ:IPHS)
IPHS has a great dividend yield of 4.06% and is distributing 86.79% of earnings as dividends . The company’s DPS have increased from $0.68 to $1.92 over the last 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. More on Innophos Holdings here.
Mercer International Inc. (NASDAQ:MERC)
MERC has a good-sized dividend yield of 3.38% and pays out 63.12% of its profit as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that MERC is in the top quartile of market payers. Over the next year, analysts are estimating a double digit EPS growth of 51.33%. More detail on Mercer International here.
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.