The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. 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. Today I will share with you my list of high-dividend materials stocks you should consider for your portfolio.

Central Asia Metals Plc (AIM:CAML)

CAML has a substantial dividend yield of 4.84% and is currently distributing 73.46% of profits to shareholders . CAML’s 4.84% yield puts it in the top quartile of GB payers. Analysts are expecting an impressive triple digit earnings growth over the next three years. Continue research on Central Asia Metals here.

Hill & Smith Holdings PLC (LSE:HILS)

HILS has a good-sized dividend yield of 2.11% and is paying out 46.62% of profits as dividends . In the case of HILS, they have increased their dividend per share from £0.078 to £0.273 so in the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Dig deeper into Hill & Smith Holdings here.

Elementis plc (LSE:ELM)

ELM has a great dividend yield of 5.68% and the company currently pays out 52.95% of its profits as dividends . ELM’s last dividend payment was $0.168, up from it’s payment 10 years ago of $0.026. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. More on Elementis 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.