A favourable economic condition has been a large driver of growth for companies in the materials industry. Thus, there is ample opportunity to take advantage of improving economic conditions which has led to strong demand for commodities. Commodity prices are also a key determinant of these companies’ earnings, which in turn drives dividend payout and yield. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.

Brickworks Limited (ASX:BKW)

BKW has a wholesome dividend yield of 3.25% and distributes 40.82% of its earnings to shareholders as dividends , with analysts expecting the payout in three years to be 53.43%. BKW’s last dividend payment was AU$0.51, up from it’s payment 10 years ago of AU$0.38. Much to the delight of shareholders, the company has not missed a payment during this time. The company recorded earnings growth of 138.15% in the past year, comparing favorably with the au basic materials industry average of -2.41%. Dig deeper into Brickworks here.

CSR Limited (ASX:CSR)

CSR has a juicy dividend yield of 4.99% and distributes 73.26% of its earnings to shareholders as dividends . Besides the potential capital gains, CSR’s yield alone is better than the low risk savings rate. Plus, a 4.99% yield places it amidst the market’s top dividend payers. More detail on CSR here.

Mineral Resources Limited (ASX:MIN)

MIN has a good-sized dividend yield of 3.40% and is paying out 48.35% of profits as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from AU$0.14 to AU$0.58. The company’s future earnings growth looks promising, with analysts expecting earnings growth over the next three years to reach 89.96%. More detail on Mineral Resources here.

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers. Or create your own list by filtering ASX companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.

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.