The materials industry is deeply cyclical with producers benefiting highly during an economic boom and many players going bankrupt in a bust. Therefore, this industry is a macroeconomic play with the opportunity of riding the wave in times of robust demand for commodities. These materials stocks are also well-positioned to take advantage of rising commodity prices while offering an attractive dividend yield. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.
Gandhi Special Tubes Limited (BSE:513108)
513108 has a nice dividend yield of 2.18% and a reasonably sustainable dividend payout ratio , with analysts expecting a 40.99% payout in the next three years. 513108’s dividends have seen an increase over the past 10 years, with payments increasing from ₹2.50 to ₹9.00 in that time. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. More detail on Gandhi Special Tubes here.
Kirloskar Ferrous Industries Limited (BSE:500245)
500245 has a good-sized dividend yield of 2.03% and is currently distributing 66.18% of profits to shareholders . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Analysts are expecting an impressive triple digit earnings growth over the next year. Interested in Kirloskar Ferrous Industries? Find out more here.
The Andhra Sugars Limited (NSEI:ANDHRSUGAR)
ANDHRSUGAR has a solid dividend yield of 2.22% and the company has a payout ratio of 22.33% . While there’s been some level of instability in the yield, ANDHRSUGAR has overall increased DPS over a 10 year period from ₹6.00 to ₹10.00. The company outperformed the in chemicals industry’s earnings growth of 20.31%, reporting an EPS growth of 152.33% over the past 12 months. Interested in Andhra Sugars? Find out more 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.