Best Materials Dividend Stock Picks

Alvin Rowe
Updated

A favourable economic condition has been a large driver of growth for companies in the materials industry. Hence an eye toward macroeconomic factors, such as demand for commodities, is necessary when investing in the materials sector. Another key driver of a materials company’s profit is the commodity prices which in turn steers the level of dividend payouts 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.

Tahoe Resources Inc. (TSX:THO)

THO has a juicy dividend yield of 5.15% and distributes 74.91% of its earnings to shareholders as dividends . THO’s 5.15% yield puts it in the top quartile of US payers. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years.

TSX:THO Historical Dividend Yield Nov 20th 17
TSX:THO Historical Dividend Yield Nov 20th 17

Labrador Iron Ore Royalty Corporation (TSX:LIF)

LIF has a juicy dividend yield of 4.67% and the company has a payout ratio of 40.74% , with the expected payout in three years being 112.90%. While there’s been some level of instability in the yield, LIF has overall increased DPS over a 10 year period from $0.975 to $1. The company recorded earnings growth of 209.42% in the past year, comparing favorably with the ca metals and mining industry average of 60.80%.

TSX:LIF Historical Dividend Yield Nov 20th 17
TSX:LIF Historical Dividend Yield Nov 20th 17

Intertape Polymer Group Inc. (TSX:ITP)

ITP has a good-sized dividend yield of 3.52% and is distributing 51.23% of earnings as dividends . ITP’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. Intertape Polymer Group’s performance over the last 12 months beat the ca containers and packaging industry, with the company reporting 37.62% EPS growth compared to its industry’s figure of 20.48%.

TSX:ITP Historical Dividend Yield Nov 20th 17
TSX:ITP Historical Dividend Yield Nov 20th 17

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.