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

RPC Group Plc (LSE:RPC)

RPC has a good-sized dividend yield of 2.64% and has a payout ratio of 65.71% . RPC’s DPS have risen to £0.244 from £0.084 over a 10 year period. It should comfort existing and potential future shareholders to know that RPC hasn’t missed a payment during this time. Analysts are enthusiastic about the company’s future growth, estimating a 92.31% earnings per share increase in the next three years.

Vedanta Resources plc (LSE:VED)

VED has a sumptuous dividend yield of 5.57% and a reasonably sustainable dividend payout ratio , and analysts are expecting the payout ratio in three years to hit 36.48%. Despite there being some hiccups, dividends per share have increased during the past 10 years. The last 12 months have seen an earnings growth of 98.47% for Vedanta Resources.

Synthomer plc (LSE:SYNT)

SYNT has a solid dividend yield of 2.34% and is currently distributing 37.16% of profits to shareholders , with analysts expecting a 40.83% payout in three years. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from £0.094 to £0.113. The company recorded earnings growth of 33.67% in the past year, comparing favorably with the gb chemicals industry average of 21.09%.

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.