Best Rated ASX Materials Dividend Stocks
The highly cyclical materials industry has benefited producers in times of economic growth and seen many players out of business during a downturn. 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. Here are my top dividend stocks in the materials industry that could be valuable additions to your current holdings.
Fortescue Metals Group Limited (ASX:FMG)
FMG has a sumptuous dividend yield of 12.64% and their payout ratio stands at 51.33% , with analysts expecting the payout in three years to be 63.52%. Besides the potential capital gains, FMG’s yield alone is better than the low risk savings rate. Plus, a 12.64% yield places it amidst the market’s top dividend payers. Fortescue Metals Group’s performance over the last 12 months beat the au metals and mining industry, with the company reporting 112.70% EPS growth compared to its industry’s figure of 6.76%.
Adelaide Brighton Limited (ASX:ABC)
ABC has a nice dividend yield of 3.83% and pays 73.02% of it’s earnings as dividends , and analysts are expecting a 73.20% payout ratio in the next three years. 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.
Mineral Resources Limited (ASX:MIN)
MIN has a sizeable dividend yield of 3.77% and the company currently pays out 50.16% of its profits as dividends , with the expected payout in three years being 50.98%. Despite there being some hiccups, dividends per share have increased during the past 10 years. Analysts are optimistic on the company’s future earnings growth, estimating a 61.67% increase in the next three years.
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.
