A favourable economic condition has been a large driver of growth for companies in the materials industry. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust 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. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.
Praxair, Inc. (NYSE:PX)
Praxair, Inc. produces and distributes industrial gases. Established in 1907, and headed by CEO Stephen Angel, the company provides employment to 26,487 people and with the market cap of USD $40.39B, it falls under the large-cap category.
PX has a good-sized dividend yield of 2.21% and has a payout ratio of 57.07% . In the case of PX, they have increased their dividend per share from $1.2 to $3.15 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time.
LyondellBasell Industries N.V. (NYSE:LYB)
LyondellBasell Industries N.V. operates as a manufacturer of chemicals and polymers, refiner of crude oil, producer of gasoline blending components, and developer and licensor of technologies for production of polymers worldwide. Formed in 2005, and currently run by Bhavesh Patel, the company now has 13,000 employees and has a market cap of USD $39.80B, putting it in the large-cap category.
LYB has a sizeable dividend yield of 3.61% and is currently distributing 38.27% of profits to shareholders , with analysts expecting the payout ratio in three years to be 39.16%. LYB’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market.
Air Products and Chemicals, Inc. (NYSE:APD)
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, electronics and performance materials, equipment, and services worldwide. Established in 1940, and now run by Seifollah Ghasemi, the company size now stands at 18,450 people and with the company’s market cap sitting at USD $33.17B, it falls under the large-cap category.
APD has a good-sized dividend yield of 2.48% and has a payout ratio of 57.73% . The company’s DPS have increased from $1.52 to $3.8 over the last 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Over the next 12 months, analysts are predicting double digit earnings growth of 34.71%.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.