The materials industry is deeply cyclical with producers benefiting highly during an economic boom and many players going bankrupt in a bust. Thus, there is ample opportunity to take advantage of improving economic conditions which has led to strong 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. Below is my list of huge dividend-paying stocks in the materials industry that continues to add value to my portfolio holdings.
Innophos Holdings, Inc. (NASDAQ:IPHS)
IPHS has an alluring dividend yield of 4.78% and is distributing 166.90% of earnings as dividends . IPHS’s dividends have increased in the last 10 years, with DPS increasing from US$0.68 to US$1.92. They have been dependable too, not missing a single payment in this time. Analysts are expecting an impressive triple digit earnings growth over the next year. Dig deeper into Innophos Holdings here.
Mercer International Inc. (NASDAQ:MERC)
MERC has a great dividend yield of 4.02% and pays out 43.29% of its profit as dividends . The company’s 4.02% dividend is both above the low risk savings rate and among the markets top payers. Analysts are optimistic on the company’s earnings in the next 12 months, estimating a 32.96% increase in EPS. Continue research on Mercer International here.
Cabot Corporation (NYSE:CBT)
CBT has a decent dividend yield of 2.26% and their payout ratio stands at 124.95% . The company’s dividends per share have risen from US$0.72 to US$1.26 over the last 10 years. They have been consistent too, not missing a payment during this 10 year period. Analysts are expecting an impressive triple digit earnings growth over the next three years. More detail on Cabot 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.