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The oil price recovery and strong economic momentum have benefited the materials sector with companies involved in steel, chemicals and mining. 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.
DS Smith Plc (LSE:SMDS)
SMDS has a sizeable dividend yield of 3.14% and the company currently pays out 75.80% of its profits as dividends . DS Smith’s future earnings growth looks strong, with analysts expecting 66.44% EPS growth in the next three years. More detail on DS Smith here.
Anglo American plc (LSE:AAL)
AAL has a good-sized dividend yield of 3.85% and the company has a payout ratio of 16.20% , with the expected payout in three years being 41.33%. 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. Anglo American is also reasonably priced, with a PE ratio of 8.3 that compares favorably with the GB Metals and Mining average of 12. More on Anglo American here.
BHP Billiton plc (LSE:BLT)
BLT has a solid dividend yield of 3.69% and is currently distributing 75.01% of profits to shareholders . BHP Billiton also looks promising for it’s growth over the next year, with analysts expecting a double digit earnings per share increase of 46.41%. Continue research on BHP Billiton here.
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.