Top 7 Dividend Stocks From The Basic Materials Sector

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 |  Includes: COP, FRD, GNI, HSC, NUE, RPM, SCCO
by: Dividend Dog

Many basic materials stocks have dividend yields that exceed Treasury yields. Taking a long-term (10-year) view, many of these firms have steadily paid dividends, increased dividend payouts and generated respecitible returns on euqity. Seven such basic materials firms were found:

Southern Copper Corp. (NYSE:SCCO) recently traded at $31.88 per share. At this price level, the stock has a 7.7% dividend yield. For 10 out of the past 10 fiscal years, a share of SCCO paid a total of $9.72 in dividends. Of these dividend payments, a total of $8.04 were paid in the last five years.

SCCO shareholders have suffered a -29.8% fall in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 6.5, a price-to-earnings multiple of 11.8, and a price-to-sales multiple of 4.0 (trailing twelve months). Over the past decade shareholders savored a 31.9% average annual return on equity.

RPM International Inc. (NYSE:RPM) recently traded at $23.78 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of RPM paid a total of $6.68 in dividends. Of these dividend payments, a total of $3.89 were paid in the last five years.

RPM shareholders have enjoyed a 11.7% change in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 2.4, a price-to-earnings multiple of 15.8, and a price-to-sales multiple of 0.9 (trailing twelve months). Over the past decade shareholders savored a 10.1% average annual return on equity.

Great Northern Iron Ore Properties (NYSE:GNI) recently traded at $109.99 per share. At this price level, the stock has a 11.8% dividend yield. For 10 out of the past 10 fiscal years, a share of GNI paid a total of $88.75 in dividends. Of these dividend payments, a total of $52.25 were paid in the last five years.

GNI shareholders have suffered a -16.6% fall in share price over the past year. At present, shares of this microcap stock trade at a price-to-book ratio of 13.4, a price-to-earnings multiple of 7.8, and a price-to-sales multiple of 6.6 (trailing twelve months). Over the past decade shareholders savored a 98.6% average annual return on equity.

Friedman Industries Inc. (NYSEMKT:FRD) recently traded at $10.81 per share. At this price level, the stock has a 4.8% dividend yield. For 10 out of the past 10 fiscal years, a share of FRD paid a total of $2.22 in dividends. Of these dividend payments, a total of $1.35 were paid in the last five years.

FRD shareholders have savored a 29.5% increase in share price over the past year. At present, shares of this microcap stock trade at a price-to-book ratio of 1.2, a price-to-earnings multiple of 8.1, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 11.9% average annual return on equity.

Nucor Corporation (NYSE:NUE) recently traded at $40.61 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of NUE paid a total of $7.12 in dividends. Of these dividend payments, a total of $5.89 were paid in the last five years.

NUE shareholders have endured a -4.7% fall in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 1.7, a price-to-earnings multiple of 20.5, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 17.1% average annual return on equity.

ConocoPhillips (NYSE:COP) recently traded at $71.95 per share. At this price level, the stock has a 3.7% dividend yield. For 10 out of the past 10 fiscal years, a share of COP paid a total of $13.36 in dividends.

COP shareholders have seen a 9.6% change in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 1.5, a price-to-earnings multiple of 9.2, and a price-to-sales multiple of 0.4 (trailing twelve months). Over the past decade shareholders savored a 10.8% average annual return on equity.

Harsco Corporation (NYSE:HSC) recently traded at $20.66 per share. At this price level, the stock has a 4.0% dividend yield. For 10 out of the past 10 fiscal years, a share of HSC paid a total of $6.42 in dividends. Of these dividend payments, a total of $3.76 were paid in the last five years.

HSC shareholders have suffered a -25.0% drop in share price over the past year. At present, shares of this smallcap stock trade at a price-to-book ratio of 1.2, a price-to-earnings multiple of 53.0, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 13.2% average annual return on equity.

These firms were able to provide positive results over the past 10 fiscal years, a period that included a severe economic downturn. Anything can happen, but at the very least these stocks are worth a look.

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

Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing.