The oil price recovery and strong economic momentum have benefited the materials sector with companies involved in steel, chemicals and mining. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust demand for commodities. Another key driver of a materials company’s profit is the commodity prices which in turn steers the level of dividend payouts and yield. If you’re a long term investor, these high-dividend materials stocks can boost your monthly portfolio income.
Shougang Fushan Resources Group Limited (SEHK:639)
639 has an alluring dividend yield of 9.95% and the company currently pays out 29.45% of its profits as dividends , with analysts expecting this ratio to be 43.63% in the next three years. Besides the potential capital gains, 639’s yield alone is better than the low risk savings rate. Plus, a 9.95% yield places it amidst the market’s top dividend payers. More detail on Shougang Fushan Resources Group here.
Fufeng Group Limited (SEHK:546)
546 has a good-sized dividend yield of 2.53% and is currently distributing 23.08% of profits to shareholders , with an expected payout of 25.16% in three years. While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Dig deeper into Fufeng Group here.
China Oriental Group Company Limited (SEHK:581)
581 has a great dividend yield of 4.75% and is paying out 24.21% of profits as dividends . While there’s been some level of instability in the yield, 581 has overall increased DPS over a 10 year period from CN¥0.063 to CN¥0.26. China Oriental Group is a strong prospect for its future growth, with analysts expecting the company’s earnings to increase by 87.35% over the next three years. Continue research on China Oriental Group 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.