A favourable economic condition has been a large driver of growth for companies in the materials industry. 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. As a long term investor, I favour these materials stocks with great dividend payments that continues to add value to my portfolio.

BHP Billiton Limited (ASX:BHP)

BHP has a sizeable dividend yield of 3.92% and distributes 75.01% of its earnings to shareholders as dividends . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from $0.54 to $0.83 over the past 10 years. Over the next 12 months, analysts are predicting double digit earnings growth of 30.20%.

Rio Tinto Limited (ASX:RIO)

RIO has a substantial dividend yield of 5.39% and the company currently pays out 64.45% of its profits as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $1.16 to $3.0134. Rio Tinto also looks promising for it’s growth over the next year, with analysts expecting a double digit earnings per share increase of 31.26%.

Amcor Limited (ASX:AMC)

AMC has a wholesome dividend yield of 3.77% and distributes 83.35% of its earnings to shareholders as dividends . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Analysts are optimistic on the company’s future earnings growth, estimating a 50.27% increase in the next three years.

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.