The materials industry is deeply cyclical with producers benefiting highly during an economic boom and many players going bankrupt in a bust. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust demand for commodities. These materials stocks are also well-positioned to take advantage of rising commodity prices while offering an attractive dividend yield. I’ve made a list of other value-adding dividend-paying stocks in the materials industry for you to consider for your investment portfolio.
Metal Coatings (India) Limited (BSE:531810)
531810 has a sizeable dividend yield of 3.51% and their current payout ratio is 42.86% . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Metal Coatings (India) is also reasonably priced, with a PE ratio of 12.2 that compares favorably with the IN Metals and Mining average of 20. More on Metal Coatings (India) here.
Gandhi Special Tubes Limited (BSE:513108)
513108 has a solid dividend yield of 2.33% and a reasonably sustainable dividend payout ratio , with analysts expecting a 40.99% payout in the next three years. 513108 has increased its dividend from ₹2.50 to ₹9.00 over the past 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. Continue research on Gandhi Special Tubes here.
The Andhra Sugars Limited (NSEI:ANDHRSUGAR)
ANDHRSUGAR has a decent dividend yield of 2.30% and their current payout ratio is 22.33% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from ₹5.00 to ₹10.00. Andhra Sugars’s earnings per share growth of 152.33% over the past 12 months outpaced the in chemicals industry’s average growth rate of 22.68%. Dig deeper into Andhra Sugars 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.