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. Today I will share with you my list of high-dividend materials stocks you should consider for your portfolio.

Anil Limited (BSE:532910)

532910 has a good-sized dividend yield of 3.46% and distributes 1.88% of its earnings to shareholders as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from ₹0.75 to ₹1.00. The company has a lower PE ratio than the IN Chemicals industry, which interested investors would be happy to see. The company’s PE is currently 0.5 while the industry is sitting higher at 23.7. Dig deeper into Anil here.

Narmada Gelatines Limited (BSE:526739)

526739 has a good dividend yield of 2.51% and their payout ratio stands at 36.84% . 526739’s dividends have increased in the last 10 years, with DPS increasing from ₹1.33 to ₹4.00. The company has been a reliable payer too, not missing a payment during this time. If analysts predictions are right, Narmada Gelatines has some strong earnings growth on the short-term horizon with an expected increase in EPS of 77.12% over the next 12 months. Continue research on Narmada Gelatines here.

Cosmo Films Limited (BSE:508814)

508814 has a solid dividend yield of 3.48% and is paying out 27.63% of profits as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from ₹4.00 to ₹10.00. More detail on Cosmo Films 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.