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. As a long term investor, I favour these materials stocks with great dividend payments that continues to add value to my portfolio.
Westlake Chemical Partners LP (NYSE:WLKP)
WLKP has a great dividend yield of 6.62% and is distributing 89.51% of earnings as dividends . WLKP’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. Dig deeper into Westlake Chemical Partners here.
Schnitzer Steel Industries, Inc. (NASDAQ:SCHN)
SCHN has a decent dividend yield of 2.34% and distributes 22.02% of its earnings to shareholders as dividends , and analysts are expecting a 25.59% payout ratio in the next three years. In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$0.068 to US$0.75. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. The company recorded earnings growth of 153.14% in the past year, comparing favorably with the us metals and mining industry average of 52.62%. Continue research on Schnitzer Steel Industries here.
P. H. Glatfelter Company (NYSE:GLT)
GLT has a good dividend yield of 2.35% with a high payout ratio . The company’s dividends per share have risen from US$0.36 to US$0.52 over the last 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. The company also looks promising for it’s future growth, with analysts expecting an impressive doubling of earnings per share over the next year. Dig deeper into P. H. Glatfelter 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.