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18 Best Dividend Paying Basic Material Stocks (High Growth With Low Debt)

Best Dividend Paying Basic Material Stocks Researched By “long-term-investments.blogspot.com. The basic material sector is a great investment field with fantastic growth potential if the economy starts to recover. The whole sector has a total market capitalization of USD 210.91 trillion and summarizes 604 companies. The average dividend yield amounts to 3.23 percent and the P/E ratio is 13.51.

In order to find the best dividend paying stocks within the sector, I screened all companies with a positive dividend yield, great earnings per share growth of more than 15 percent and an operating margin over 20 percent. To get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.4. Eighteen basic material companies remained of which three yielding over three percent and sixteen are currently recommended to buy.


Here are my favorite stocks:
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Vale (NYSE:VALE) has a market capitalization of $92.92 billion. The company employs 70,785 people, generates revenue of $58,990.00 million and has a net income of $21,517.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,234.00 million. The EBITDA margin is 58.03 percent (operating margin 51.05 percent and net profit margin 36.48 percent). 

Financial Analysis: The total debt represents 19.04 percent of the company’s assets and the total debt in relation to the equity amounts to 31.53 percent. Due to the financial situation, a return on equity of 30.99 percent was realized. Twelve trailing months earnings per share reached a value of $3.07. Last fiscal year, the company paid $1.73 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.87, P/S ratio 1.53 and P/B ratio 1.18. Dividend Yield: 6.40 percent. The beta ratio is 1.50.


Long-Term Stock History Chart Of Vale (Click to enlarge)
Long-Term Dividends History of Vale (VALE) (Click to enlarge)
Long-Term Dividend Yield History of Vale (NYSE: VALE) (Click to enlarge)

Monsanto (NYSE:MON) has a market capitalization of $47.64 billion. The company employs 20,600 people, generates revenue of $11,822.00 million and has a net income of $1,657.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,115.00 million. The EBITDA margin is 26.35 percent (operating margin 21.16 percent and net profit margin 14.02 percent). 


Financial Analysis: The total debt represents 11.19 percent of the company’s assets and the total debt in relation to the equity amounts to 19.24 percent. Due to the financial situation, a return on equity of 14.85 percent was realized. Twelve trailing months earnings per share reached a value of $4.00. Last fiscal year, the company paid $1.14 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.37, P/S ratio 4.03 and P/B ratio 4.14. Dividend Yield: 1.68 percent. The beta ratio is 0.87.


Long-Term Stock History Chart Of Monsanto (Click to enlarge)
Long-Term Dividends History of Monsanto (MON) (Click to enlarge)
Long-Term Dividend Yield History of Monsanto (NYSE: MON) (Click to enlarge)

Silver Wheaton (NYSE:SLW) has a market capitalization of $12.86 billion. The company employs 24 people, generates revenue of $730.00 million and has a net income of $550.03 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $615.63 million. The EBITDA margin is 84.33 percent (operating margin 76.49 percent and net profit margin 75.35 percent).


Financial Analysis: The total debt represents 7.29 percent of the company’s assets and the total debt in relation to the equity amounts to 7.89 percent. Due to the financial situation, a return on equity of 22.38 percent was realized. Twelve trailing months earnings per share reached a value of $1.60. Last fiscal year, the company paid $0.18 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.76, P/S ratio 17.56 and P/B ratio 4.84. Dividend Yield: 1.10 percent. The beta ratio is 1.57.


Long-Term Stock History Chart Of Silver Wheaton (Click to enlarge)
Long-Term Dividends History of Silver Wheaton (SLW) (Click to enlarge)
Long-Term Dividend Yield History of Silver Wheaton (NYSE: SLW) (Click to enlarge)


Take a closer look at the full table of the best dividend paying basic material stocks. The average price to earnings ratio (P/E ratio) amounts to 17.88 and forward P/E ratio is 13.98. The dividend yield has a value of 2.48 percent. Price to book ratio is 2.61 and price to sales ratio 4.30. The operating margin amounts to 35.13 percent and the beta ratio is 1.15. The average stock has a debt to equity ratio of 0.18.

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

Best Dividend Paying Basic Material Stocks (Click to enlarge)

Related stock ticker symbols:
RNF, AWC, VALE, OXY, TS, IAG, CCJ, BVN, MON, CRR, AUY, CNQ, GG, SLW, CF, DO, EOG, HP

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* 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.