The oil price recovery and strong economic momentum have benefited the materials sector with companies involved in steel, chemicals and mining. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust demand for commodities. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. I’ve identify the following materials stocks paying high income, which may increase the value of your portfolio.

Ngai Hing Hong Company Limited (SEHK:1047)

1047 has a sumptuous dividend yield of 4.65% and pays out 29.83% of its profit as dividends . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Ngai Hing Hong’s earnings per share growth of 106.47% over the past 12 months outpaced the hk chemicals industry’s average growth rate of 4.81%. More detail on Ngai Hing Hong here.

Golik Holdings Limited (SEHK:1118)

1118 has a large dividend yield of 4.74% and their payout ratio stands at 59.59% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from HK$0.012 to HK$0.045. They have been consistent too, not missing a payment during this 10 year period. Golik Holdings seems reasonably priced when looking at its PE ratio (12.6). The industry average suggests that HK Metals and Mining companies are more expensive on average 12.8. Dig deeper into Golik Holdings here.

Lee & Man Chemical Company Limited (SEHK:746)

746 has a sumptuous dividend yield of 5.00% and pays 35.20% of it’s earnings as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from HK$0.05 to HK$0.30. The company recorded earnings growth of 225.19% in the past year, comparing favorably with the hk chemicals industry average of 4.81%. Continue research on Lee & Man Chemical 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.