The Top 12 Yield-Generating Basic Material Stocks

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 |  Includes: APD, COP, DOW, EPD, ETE, ETP, KMP, NUE, PPG, SCCO, SE, WPZ
by: Efsinvestment

Basic material producers are among the safest companies to invest for the long-run. Their products are crucial for industrial companies, as well as individuals. Most basic material companies pay good dividends, thanks to their cash-rich balance sheets. Here is a list of high-dividend U.S. large caps which offer a minimum 2% yield. Data is derived from finviz.

Air Products & Chemicals, Inc. (APD) : Pennsylvania-based APD provides processed and specialty gases, performance materials, and atmospheric gases. The market capitalization of APD is $20.14 billion, and P/E ratio is 19.09, while forward P/E is 14.53. The company had an EPS growth of 9.26% over the last five years. With a net profit margin of 11.61%, APD paid a dividend yield of 2.53% last year. Recent dividend history per share are as follows:

Mar 30, 2011 $0.58
Dec 30, 2010 $0.49
Sep 29, 2010 $0.49
Jun29, 2010 $0.49
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ConocoPhillips (COP): Founded in 1917, Texas-based ConocoPhillips operates as an integrated energy company worldwide. COP has a market capitalization of $116.45 billion, and a P/E ratio of 10.51, while the forward P/E is 8.84. Although ConocoPhillips had an EPS growth of -4.57% over the last five years, the company is expected to have an EPS growth of 10.70% in the next five years. The company offered a dividend yield of 3.34%. Following are the recent dividend history of ConocoPhillips:

Feb 17, 2011 $0.66
Oct 27, 2010 $0.55
Jul 29, 2010 $0.55
May 20, 2010 $0.55
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The Dow Chemical Company (DOW): Michigan-based company manufactures and supplies products used as raw materials in the production of raw materials. The market capitalization of DOW is $44.85 billion, and P/E ratio is 22.23. Forward P/E ratio is 11.24. The company had an EPS growth of 7.33% over the last five years. Last year's dividend yield is 2.65%. Recent dividend history of DOW is as follows:

Mar 29, 2011 $0.15
Dec 29, 2010 $0.15
Sep 28, 2010 $0.15
Jun 28, 2010 $0.15
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Enterprise Products Partners LP (EPD): EPD offers a variety of services such as; natural gas, crude oil, refined products. The market cap of EPD is $36.70 billion, and current P/E ratio is 37.63, while forward P/E ratio is 43.34. Enterprise Products Partners had an annual EPS growth of 4.57% during the last five years. EPD's dividend yield is 5.56%. Following is the recent dividend history:

Jan 27, 2011 $0.59
Oct 27, 2010 $0.58
Jul 28, 2010 $0.57
Apr 28, 2010 $0.57
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Energy Transfer Equity, LP (ETE) : ETE engages in the transportation and storage of natural gas. ETE has a market cap of $10.01 billion. The company had an EPS growth of 3.37% over the last five years. ETE has a net profit margin of 5.12%, and a dividend yield of 4.80%. However, with a P/E ratio of 51.72, the stock is pricey. ETE's recent dividends per share are as follows:

feb 3, 2011 $0.54
nov 4, 2010 $0.54
aug 5, 2010 $0.54
may 5, 2010 $0.54
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Energy Transfer Partners, LP (ETP): Texas-based ETP engages in the transportation and storage of natural gas. The market capitalization of ETP is $11.03 billion, and P/E ratio is 45.24, while forward P/E ratio is 19.2. ETP paid a dividend yield of 6.75%. Note that ETP had an EPS growth of -14.20% over the last five years. Recent dividend payments of ETP per share are as follows:

Feb 3, 2011 $0.894
Nov 4, 2010 $0.894
Aug 5, 2010 $0.894
May 5, 2010 $0.894
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Kinder Morgan Energy Partners LP (KMP): Founded in 1992, Texas-based KMP engages in the energy transportation and storage assets. KMP has a market capitalization of $23.92 billion, and a P/E ratio of 54.04, while the forward P/E is 33.13. Although KMP had an annualized EPS growth of -2.30% over the last five years, the company is expected to have an EPS growth of 6.80% in the next five years. Current yield is 6.01%. Following is the recent dividend history:

Jan 27, 2011 $1.13
Oct 27, 2010 $1.11
Jul 28, 2010 $1.09
Apr 28, 2010 $1.07
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Nucor Corporation (NUE): North Carolina-based company engages in manufacturing and sale of steel and its products around the world. The market cap of Nucor is $14.59 billion, and P/E ratio is 109.88. Forward P/E ratio is 11.57. The company had an EPS growth of -36.83% over the last five years but the expected EPS growth in the next five years is 65.30%. NUE's dividend yield is 3.21%. Recent dividend history of NUE is as follows:

Mar 29, 2011 $0.363
Dec 29, 2010 $0.363
Sep 28, 2010 $0.36
Jun 28, 2010 $0.36
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PPG Industries, Inc. (PPG): PPG engages in manufacturing and supplying protective and decorative coatings. The market cap of PPG is $15.24 billion, and trailing P/E ratio is 20.40, while forward P/E ratio is 13.37. PPG had an annual EPS growth of 7.26% during the last five years. Its profit margin is 6.56% and its dividend yield is 2.37%. Following is the recent dividend history of PPG Industries:

Feb 16, 2011 $0.55
Nov 8, 2010 $0.55
Aug 6, 2010 $0.55
May 6, 2010 $0.54
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Southern Copper Corporation (SCCO): Founded in 1952, SCCO engages in mining, smelting, and refining mineral properties in Peru, Mexico and Chile. SCCO has a market cap of $31.33 billion, and a P/E ratio of 20.14. The company had an EPS growth of 2.90% over the last five years, and its expected EPS growth next five years is 27.60%. With a net profit margin of 30.35% and a dividend yield of 5.02%, SCCO is a promising stock. Southern Copper Corporation's recent dividend history per share are as follows:

Feb 11, 2011 $0.58
Nov 12, 2010 $0.43
Aug 10, 2010 $0.37
May 10, 2010 $0.45
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Spectra Energy Corporation (SE): Texas-based SE participates in the ownership and operation of a portfolio of complementary natural gas-related energy assets. The market capitalization of Spectra Energy Corporation is $18.18 billion, and P/E ratio is 17.39, while forward P/E ratio is 14.93. The company had an EPS growth of -6.38% over the last five years, but the expected EPS growth of the company is 8.85%. With a net profit margin of 22.71%, SE's dividend yield is 3.78%. Recent dividend history of SE per share are as follows:

Feb 9, 2011 $0.26
Nov 9, 2010 $0.25
Aug 11, 2010 $0.25
May 12, 2010 $0.25
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William Partners L.P. (WPZ): Founded in 2005, Oklahoma-based WPZ focuses on transporting, gathering, storing natural gas, and oil transporting activities. WPZ has a market capitalization of $15.68 billion, and a P/E ratio of 20.42, while the forward P/E is 14.76. Although WPZ had an annualized EPS growth of 35.26% over the last five years, the company is expected to have an EPS growth of 6.23% in the next five years. The company offered a nice dividend yield of 5.32%. Following is the recent dividend history:

Feb 2, 2011 $0.70
Nov 3, 2010 $0.69
Aug 4, 2010 $0.67
May 5, 2010 $0.66
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Note that almost all of the companies listed above significantly increased their dividend payments this year. That is a strong signal to include basic material stocks as an integral part of high-yield retirement portfolio.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.