The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. Thus, there is ample opportunity to take advantage of improving economic conditions which has led to strong demand for commodities. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. Today I will share with you my list of high-dividend materials stocks you should consider for your portfolio.
Greif, Inc. (NYSE:GEF)
GEF has a nice dividend yield of 2.77% and distributes 67.75% of its earnings to shareholders as dividends . Over the past 10 years, GEF has increased its dividends from $1.12 to $1.68. The company has been a dependable payer too, not missing a payment in this 10 year period. Over the next three years, analysts predict double digit earnings growth for Greif of 67.33%.
Domtar Corporation (NYSE:UFS)
UFS has a good dividend yield of 3.35% and their payout ratio stands at 59.38% . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that UFS is in the top quartile of market payers.
Cabot Corporation (NYSE:CBT)
CBT has a wholesome dividend yield of 2.05% and pays 32.06% of it’s earnings as dividends , with the expected payout in three years being 33.78%. Over the past 10 years, CBT has increased its dividends from $0.72 to $1.26. The company has been a reliable payer too, not missing a payment during this time. The company recorded earnings growth of 62.59% in the past year, comparing favorably with the us chemicals industry average of 14.21%.
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.