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10/13/2013

11 Basic Material Stocks With Low Debt And Dividend Payout Ratios

Basic material dividend stocks with low dividend payout ratios and small debt figures originally published at long-term-investments.blogspot.com. The basic material sector is not popular at the capital market for the time being. Over the past year, shares from the sector are the worst performing assets class on the market.

But what others hate does not mean that you cannot make money with basic material stocks. If you are a long-term investor, you should definitely find some good stocks with a cheap valuation. But be careful, raw materials are also more cyclic than consumer or healthcare companies.


Today I would like to continue my monthly screen about dividend stocks with low debt ratios and little dividend payments. I observe stocks from the basic material sector with a dividend payout ratio of less than 20 percent of earnings as well as a debt to equity ratio under 0.2.


Exactly eleven stocks fulfilled these criteria of which eight are currently recommended to buy. Agrichemicals and specialty chemical companies are the dominating player on the list.


Here are my favorite stocks:
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Monsanto (NYSE:MON) has a market capitalization of $56.82 billion. The company employs 21,500 people, generates revenue of $14.861 billion and has a net income of $2.514 billion. Monsanto’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.778 billion. The EBITDA margin is 72.53 percent (the operating margin is 72.53 percent and the net profit margin 16.92 percent).


Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, Monsanto paid $1.27 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.37, the P/S ratio is 3.82 and the P/B ratio is finally not calculable. The dividend yield amounts to 1.61 percent and the beta ratio has a value of 1.00.

Long-Term Stock Price Chart Of Monsanto (MON)
Long-Term Dividend Payment History of Monsanto (MON)
Long-Term Dividend Yield History of Monsanto (MON)

National-Oilwell Varco (NYSE:NOV) has a market capitalization of $33.91 billion. The company employs 51,661 people, generates revenue of $20.041 billion and has a net income of $2.483 billion. National-Oilwell Varco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.185 billion. The EBITDA margin is 20.88 percent (the operating margin is 17.75 percent and the net profit margin 12.39 percent).

Financial Analysis: The total debt represents 10.00 percent of National-Oilwell Varco’s assets and the total debt in relation to the equity amounts to 15.56 percent. Due to the financial situation, a return on equity of 13.16 percent was realized by National-Oilwell Varco. Twelve trailing months earnings per share reached a value of $5.40. Last fiscal year, National-Oilwell Varco paid $0.49 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.68, the P/S ratio is 1.69 and the P/B ratio is finally 1.67. The dividend yield amounts to 1.31 percent and the beta ratio has a value of 1.43.

Long-Term Stock Price Chart Of National-Oilwell Varco (NOV)
Long-Term Dividend Payment History of National-Oilwell Varco (NOV)
Long-Term Dividend Yield History of National-Oilwell Varco (NOV)

Minerals Technologies (NYSE:MTX) has a market capitalization of $1.80 billion. The company employs 1,992 people, generates revenue of $1.005 billion and has a net income of $76.27 million. Minerals Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $161.85 million. The EBITDA margin is 16.09 percent (the operating margin is 10.94 percent and the net profit margin 7.58 percent).

Financial Analysis: The total debt represents 7.64 percent of Minerals Technologies’s assets and the total debt in relation to the equity amounts to 11.71 percent. Due to the financial situation, a return on equity of 9.68 percent was realized by Minerals Technologies. Twelve trailing months earnings per share reached a value of $2.21. Last fiscal year, Minerals Technologies paid $0.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.38, the P/S ratio is 1.78 and the P/B ratio is finally 2.29. The dividend yield amounts to 0.39 percent and the beta ratio has a value of 1.37.

Long-Term Stock Price Chart Of Minerals Technologies (MTX)
Long-Term Dividend Payment History of Minerals Technologies (MTX)
Long-Term Dividend Yield History of Minerals Technologies (MTX)

Take a closer look at the full list of dividend potentials from the basic material sector. The average P/E ratio amounts to 18.41 and forward P/E ratio is 16.78. The dividend yield has a value of 1.48 percent. Price to book ratio is 2.60 and price to sales ratio 2.42. The operating margin amounts to 17.81 percent and the beta ratio is 1.19. Stocks from the list have an average debt to equity ratio of 0.09.

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

Dividend Potentials From The Basic Material Sector (Click to enlarge)


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Related Stock Ticker Symbols:
BVN, HP, AE, MON, KWR, NOV, GOLD, AVD, KMG, BCPC, MTX

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. You put in a lot of work. Keep it up. How do you find the certain stocks?

    ReplyDelete

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