LSE Favorite Materials Dividend Stocks
The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust demand for commodities. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. I’ve identify the following materials stocks paying high income, which may increase the value of your portfolio.
RPC Group Plc (LSE:RPC)
RPC has a wholesome dividend yield of 3.16% and is paying out 51.34% of profits as dividends . Over the past 10 years, RPC has increased its dividends from UK£0.086 to UK£0.24. It should comfort existing and potential future shareholders to know that RPC hasn’t missed a payment during this time. Analysts are optimistic on the company’s future earnings growth, estimating a 50.33% increase in the next three years. Continue research on RPC Group here.
DS Smith Plc (LSE:SMDS)
SMDS has a good dividend yield of 3.23% and is paying out 75.80% of profits as dividends . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from UK£0.086 to UK£0.15 over the past 10 years. DS Smith is a strong prospect for its future growth, with analysts expecting the company’s earnings to increase by 66.44% over the next three years. More on DS Smith here.
Randgold Resources Limited (LSE:RRS)
RRS has a decent dividend yield of 2.39% and the company currently pays out 67.66% of its profits as dividends , with analysts expecting the payout in three years to be 100.91%. The company’s DPS have increased from US$0.06 to US$1.40 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Dig deeper into Randgold Resources 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.
