A favourable economic condition has been a large driver of growth for companies in the materials industry. 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. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.

Dynamic Colours Limited (SGX:D6U)

D6U has a enticing dividend yield of 5.66% and is paying out 70.60% of profits as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from US$0.01 to US$0.015. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the SG Chemicals industry. Dynamic Colours’s PE ratio is 12.6 while its industry average is 13.7. Dig deeper into Dynamic Colours here.

New Toyo International Holdings Ltd (SGX:N08)

N08 has an alluring dividend yield of 6.42% and their current payout ratio is 73.00% . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from S$0.0093 to S$0.017. When we compare New Toyo International Holdings’s PE ratio with its industry, the company appears favorable. The Global Forestry industry’s average ratio of 14 is above that of New Toyo International Holdings’s (11.4). Continue research on New Toyo International Holdings here.

Tat Seng Packaging Group Ltd (SGX:T12)

T12 has a decent dividend yield of 3.80% and is currently distributing 15.46% of profits to shareholders . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Tat Seng Packaging Group’s earnings per share growth of 40.20% over the past 12 months outpaced the global packaging industry’s average growth rate of 13.67%. Dig deeper into Tat Seng Packaging Group 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.