Best ASX Materials Dividend Payers
The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. 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. I’ve made a list of other value-adding dividend-paying stocks in the materials industry for you to consider for your investment portfolio.
Mount Gibson Iron Limited (ASX:MGX)
MGX has an alluring dividend yield of 5.20% and the company has a payout ratio of 25.79% , with an expected payout of 35.21% in three years. With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that MGX is in the top quartile of market payers. When we compare Mount Gibson Iron’s PE ratio with its industry, the company appears favorable. The AU Metals and Mining industry’s average ratio of 13.5 is above that of Mount Gibson Iron’s (5). Interested in Mount Gibson Iron? Find out more here.
Adelaide Brighton Limited (ASX:ABC)
ABC has a wholesome dividend yield of 3.62% and is currently distributing 73.22% of profits to shareholders , with the expected payout in three years being 82.04%. Despite there being some hiccups, dividends per share have increased during the past 10 years. Dig deeper into Adelaide Brighton here.
Fortescue Metals Group Limited (ASX:FMG)
FMG has a juicy dividend yield of 7.53% and pays 57.46% of it’s earnings as dividends , with analysts expecting this ratio to be 59.50% in the next three years. With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that FMG is in the top quartile of market payers. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the AU Metals and Mining industry. Fortescue Metals Group’s PE ratio is 7.4 while its industry average is 13.5. Continue research on Fortescue Metals Group here.
For more solid dividend paying companies to add to your portfolio, explore this 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.
