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In my previous post, I described three energy stocks with dividend yields over 10%. In this article, I describe three basic materials stocks with dividend yields over 10%, which, in my opinion, can reward an investor with a capital gain along with the very rich dividend. I recommend readers use this list of stocks as a basis for further research. All the data for this article were taken from Yahoo Finance, Portfolio123 and finviz.com, on October 10, before the market open.

CVR Partners, LP (NYSE:UAN)

CVR Partners, LP engages in the production, distribution, and marketing of nitrogen fertilizers in North America.

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Source: Company presentation

CVR Partners has a very low trailing P/E of 10.95 and a very low forward P/E of 12.84. The current ratio is very high at 4.90, and the average annual earnings growth estimates for the next five years is at 9.10%. The forward annual dividend yield is very high at 13.22%, and the payout ratio is at 118%.

CVR Partners has recorded revenue and EPS growth, during the last three years, as shown in the table below.

Source: Portfolio123

The charts below, which were taken from CVR Partners' September 2013, investor presentation, emphasize the company's historical financial success, and the key demand drivers.

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CVR Partners' margins have been much better than that of the industry median, the sector median and the S&P 500 median, as shown in the table below.

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CVR Partners' trailing and forward P/E ratios have been much better than that of the industry median, the sector median and the S&P 500 median, as shown in the table below.

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Source: Portfolio123

CVR Partners will report its latest quarterly financial results on November 05. UAN is expected to post a profit of $0.26 a share, a $0.17 decline from the company's actual earnings for the same quarter a year ago.

CVR Partners has recorded revenue and EPS growth, and considering its good earnings growth prospects and its low P/E ratio, UAN stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, and a decline in the price of agriculture products.

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Chart: finviz.com

Rentech Nitrogen Partners, L.P. (NYSE:RNF)

Rentech Nitrogen Partners, L.P. engages in the manufacture and sale of nitrogen fertilizer products for use in the United States.

Rentech Nitrogen Partners has a very low trailing P/E of 11.67 and a very low forward P/E of 9.93. The PEG ratio is very low at 0.97, and the average annual earnings growth estimates for the next five years is quite high at 12%. The forward annual dividend yield is very high at 12.61%, and the payout ratio is at 128%.

The RNF stock price is 4.01% above its 20-day simple moving average, and 0.34% above its 50-day simple moving average. That indicates a short-term and mid-term uptrend.

Rentech Nitrogen Partners has recorded revenue and EPS growth, during the last three years, as shown in the table below.

Source: Portfolio123

Most of Rentech Nitrogen Partners' growth rates have been better than that of the industry median, the sector median and the S&P 500 median, as shown in the table below.

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Most of Rentech Nitrogen Partners' margins have been better than that of the industry median, the sector median and the S&P 500 median, as shown in the table below.

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Rentech Nitrogen Partners' trailing and forward P/E ratios have been much better than that of the industry median, the sector median and the S&P 500 median, as shown in the table below.

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Source: Portfolio123

Rentech Nitrogen Partners will report its latest quarterly financial results in November. RNF is expected to post a profit of $0.46 a share, a $0.28 decline from the company's actual earnings for the same quarter a year ago.

Rentech Nitrogen Partners has strong earnings growth prospects, and considering its compelling valuation metrics, RNF stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, and a decline in the price of agriculture products.

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Chart: finviz.com

PetroLogistics LP (NYSE:PDH)

PetroLogistics LP owns and operates propane dehydrogenation facility that processes propane into propylene in North America.

PetroLogistics LP has a very low trailing P/E of 13.10 and a very low forward P/E of 8.79. The forward annual dividend yield is very high at 10.18%, and the payout ratio is at 133%.

PetroLogistics' trailing and forward P/E ratios have been much better than that of the industry median, the sector median and the S&P 500 median, as shown in the table below.

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PetroLogistics will report its latest quarterly financial results on October 23. PDH is expected to post a profit of $0.39 a share, a 95% rise from the company's actual earnings for the same quarter a year ago.

On July 24, PetroLogistics reported its second-quarter financial results, which beat EPS expectations by $0.01.

In the report, Nathan Ticatch, President and Chief Executive Officer explained:

Although propane-to-propylene spreads were at generally healthy levels over the course of the quarter, an unplanned outage during the month of June negatively impacted results. Since resuming normal operations the plant has run well, and with continued healthy margins the third quarter has started off on a solid footing.

PetroLogistics LP has good earnings growth prospects, and considering its low P/E ratio, PDH stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, and a decline in the price of propylene.

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Chart: finviz.com

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: 3 Basic Materials Stocks With Dividend Yields Over 10% And Very Low P/E Ratios