The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. Hence an eye toward macroeconomic factors, such as demand for commodities, is necessary when investing in the materials sector. These materials stocks are also well-positioned to take advantage of rising commodity prices while offering an attractive dividend yield. Today I will share with you my list of high-dividend materials stocks you should consider for your portfolio.
Eastman Chemical Company (NYSE:EMN)
EMN has a good-sized dividend yield of 2.24% and their current payout ratio is 29.42% . EMN’s dividends have seen an increase over the past 10 years, with payments increasing from $0.88 to $2.04 in that time. The company has been a dependable payer too, not missing a payment in this 10 year period.
Packaging Corporation of America (NYSE:PKG)
PKG has a wholesome dividend yield of 2.26% and pays out 46.53% of its profit as dividends . While there’s been some level of instability in the yield, PKG has overall increased DPS over a 10 year period from $1.2 to $2.52.
CF Industries Holdings, Inc. (NYSE:CF)
CF has a nice dividend yield of 3.34% and a reasonably sustainable dividend payout ratio , and analysts are expecting a 60.08% payout ratio in the next three years. CF’s dividends have increased in the last 10 years, with DPS increasing from $0.016 to $1.2. They have been consistent too, not missing a payment during this 10 year period. If analysts predictions are right, CF Industries Holdings has some strong earnings growth on the short-term horizon with an expected increase in EPS of 96.98% over the next 12 months.
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.