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3/10/2012

The Best Basic Material Dividend Stocks

Basic Material Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield - Stock, Capital, Investment. Basic materials are the source of all economic activities but their prices are very cyclic and something like the fever curve of the economy. In booming times, basic resources are rare and prices high; therefore margins are very high.

I screened the basic material sector by the most profitable stocks (stocks with an operating margin and return on investment over 20 percent) with a dividend yield over 1 percent. Because of the huge amount of results (24 stocks), I selected only those stocks with a market capitalization above USD 2 billion. Thirteen companies’ fulfilled these criteria of which five are high yields and nine are recommended to buy or better.

Here are my favorite stocks:
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Southern Copper (NYSE:SCCO) has a market capitalization of $26.40 billion. The company employs 12,145 people, generates revenues of $6,818.72 million and has a net income of $2,344.35 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,913.52 million. Because of these figures, the EBITDA margin is 57.39 percent (operating margin 53.17 percent and the net profit margin finally 34.38 percent).


Financial Analysis:
The total debt representing 34.05 percent of the company’s assets and the total debt in relation to the equity amounts to 68.38 percent. Due to the financial situation, a return on equity of 59.11 percent was realized. Twelve trailing months earnings per share reached a value of $2.76. Last fiscal year, the company paid $2.46 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 11.36, P/S ratio 3.91 and P/B ratio 6.57. Dividend Yield: 6.52 percent. The beta ratio is 1.60.


Long-Term Stock History Chart Of Southern Copper Corp. (Click to enlarge)


Long-Term Dividends History of Southern Copper Corp. (SCCO) (Click to enlarge)


Long-Term Dividend Yield History of Southern Copper Corp. (NYSE: SCCO) (Click to enlarge)


BHP Billiton (NYSE:BBL) has a market capitalization of $66.67 billion. The company employs 40,757 people, generates revenues of $71,739.00 million and has a net income of $23,946.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $37,927.00 million. Because of these figures, the EBITDA margin is 52.87 percent (operating margin 44.35 percent and the net profit margin finally 33.38 percent).


Financial Analysis:
The total debt representing 15.46 percent of the company’s assets and the total debt in relation to the equity amounts to 28.02 percent. Due to the financial situation, a return on equity of 44.92 percent was realized. Twelve trailing months earnings per share reached a value of $8.49. Last fiscal year, the company paid $2.02 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 7.43, P/S ratio 2.60 and P/B ratio 1.17. Dividend Yield: 3.48 percent. The beta ratio is 1.55.


Long-Term Stock History Chart Of BHP Billiton plc (ADR) (Click to enlarge)


Long-Term Dividends History of BHP Billiton plc (ADR) (BBL) (Click to enlarge)


Long-Term Dividend Yield History of BHP Billiton plc (ADR) (NYSE: BBL) (Click to enlarge)


Freeport-McMoRan Copper (NYSE:FCX) has a market capitalization of $36.78 billion. The company employs 31,800 people, generates revenues of $20,880.00 million and has a net income of $5,731.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,094.00 million. Because of these figures, the EBITDA margin is 48.34 percent (operating margin 43.45 percent and the net profit margin finally 27.45 percent).


Financial Analysis:
The total debt representing 11.03 percent of the company’s assets and the total debt in relation to the equity amounts to 22.61 percent. Due to the financial situation, a return on equity of 32.40 percent was realized. Twelve trailing months earnings per share reached a value of $4.77. Last fiscal year, the company paid $1.50 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.12, P/S ratio 1.76 and P/B ratio 2.35. Dividend Yield: 2.58 percent. The beta ratio is 1.96.


Long-Term Stock History Chart Of Freeport-McMoRan Coppe... (Click to enlarge)


Long-Term Dividends History of Freeport-McMoRan Coppe... (FCX) (Click to enlarge)


Long-Term Dividend Yield History of Freeport-McMoRan Coppe... (NYSE: FCX) (Click to enlarge)


Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 10.63 and forward P/E ratio is 10.24. The dividend yield has a value of 4.04 percent. Price to book ratio is 4.68 and price to sales ratio 3.76. The operating margin amounts to 44.66 percent. Finally, the return on equity has a fantastic margin of 48.70 percent and the return on investment follows with a value of 42.56 percent.

Here is the full table with some fundamentals (TTM):

The Best Basic Material Dividend Stocks (Click to enlarge)

Related stock ticker symbols:
TNH, BPT, SCCO, ARLP, AHGP, BBL, RES, BHP, CEO, FCX, KRO, BVN, POT

Selected Articles:


* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

1 comment:

  1. Theirs a company simlar to BHP Billiton. Its Anglo American Symbol AAUKY they are a large mutinational natural resource company their holdings range from de beers diamonds to platinum,and other commodities.

    ReplyDelete

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