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The oil price recovery and strong economic momentum have benefited the materials sector with companies involved in steel, chemicals and mining. Thus, there is ample opportunity to take advantage of improving economic conditions which has led to strong demand for commodities. These materials stocks are also well-positioned to take advantage of rising commodity prices while offering an attractive dividend yield. Below is my list of huge dividend-paying stocks in the materials industry that continues to add value to my portfolio holdings.
Mount Gibson Iron Limited (ASX:MGX)
MGX has a large dividend yield of 5.00% and distributes 85.30% of its earnings to shareholders as dividends . MGX is among the markets top 25% of dividend payers, which is certainly enticing for interested investors. Mount Gibson Iron is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years. More on Mount Gibson Iron here.
Amcor Limited (ASX:AMC)
AMC has a wholesome dividend yield of 3.72% and distributes 83.35% of its earnings to shareholders as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0.34 to $0.531437. Over the next three years, analysts predict double digit earnings growth for Amcor of 50.92%. Interested in Amcor? Find out more here.
Rio Tinto Limited (ASX:RIO)
RIO has a great dividend yield of 4.77% and the company currently pays out 58.34% of its profits as dividends . Despite there being some hiccups, dividends per share have increased during the past 10 years. Dig deeper into Rio Tinto 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.