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. 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.
Compass Minerals International, Inc. (NYSE:CMP)
CMP has an alluring dividend yield of 4.35% with a high payout ratio . In the case of CMP, they have increased their dividend per share from US$1.34 to US$2.88 so in the past 10 years. They have been dependable too, not missing a single payment in this time. 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 Compass Minerals International here.
Kronos Worldwide, Inc. (NYSE:KRO)
KRO has a sizeable dividend yield of 2.71% and has a payout ratio of 18.50% , with analysts expecting the payout in three years to be 24.55%. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from US$0.50 to US$0.68 over the past 10 years. Kronos Worldwide’s earnings per share growth of 362.93% over the past 12 months outpaced the us chemicals industry’s average growth rate of 18.02%. Dig deeper into Kronos Worldwide here.
Greif, Inc. (NYSE:GEF)
GEF has a solid dividend yield of 2.83% and the company currently pays out 47.36% of its profits as dividends . GEF’s DPS have risen to US$1.68 from US$1.52 over a 10 year period. It should comfort existing and potential future shareholders to know that GEF hasn’t missed a payment during this time. More detail on Greif here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.