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20 Basic Material Dividend Stocks With Top Yields And Low Volatility

Basic material dividend stocks with low betas and large market capitalization originally published at "long-term-investments.blogspot.com". When I buy stocks I ever take a look at the risk fundamentals of a company. Beside the market capitalization, the beta ratio is a meaningful ratio. The ratio shows investors how volatile a stock is compared to the overall market. A beta value of 1.2 means: The stock has a 20 percent higher volatility than the market. I use this tool to identify the underlying risks of a business model. For sure, it’s not perfect but a good first step to evaluate the risk situation.

Today I like to run my screen for the safest basic material stocks. These are my criteria:

- Market Capitalization over USD 10 billion
- Beta ratio below 1

Linked are the 20 best yielding stocks. 14 of them have a current buy or better recommendation and five are high-yields. Oil and gas companies are the dominating category.

Here are my favorite stocks:
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Kinder Morgan Energy Partners (NYSE:KMP) has a market capitalization of $33.68 billion. The company employs 10,685 people, generates revenue of $8.642 billion and has a net income of $2.025 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.428 billion. The EBITDA margin is 39.67 percent (the operating margin is 27.08 percent and the net profit margin 23.43 percent).


Financial Analysis: The total debt represents 54.13 percent of the company’s assets and the total debt in relation to the equity amounts to 153.43 percent. Due to the financial situation, a return on equity of 7.34 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $4.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 54.83, the P/S ratio is 3.96 and the P/B ratio is finally 3.98. The dividend yield amounts to 5.72 percent and the beta ratio has a value of 0.40.

Long-Term Stock Price Chart Of Kinder Morgan Energy Partners (KMP)
Long-Term Dividend Payment History of Kinder Morgan Energy Partners (KMP)
Long-Term Dividend Yield History of Kinder Morgan Energy Partners (KMP)

Exxon Mobil (NYSE:XOM) has a market capitalization of $398.72 billion. The company employs 76,900 people, generates revenue of $453.123 billion and has a net income of $47.681 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $79.931 billion. The EBITDA margin is 17.64 percent (the operating margin is 14.06 percent and the net profit margin 10.52 percent).

Financial Analysis: The total debt represents 3.47 percent of the company’s assets and the total debt in relation to the equity amounts to 6.98 percent. Due to the financial situation, a return on equity of 28.03 percent was realized. Twelve trailing months earnings per share reached a value of $9.69. Last fiscal year, the company paid $2.18 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.18, the P/S ratio is 0.88 and the P/B ratio is finally 2.42. The dividend yield amounts to 2.56 percent and the beta ratio has a value of 0.49.

Long-Term Stock Price Chart Of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

Syngenta AG (NYSE:SYT) has a market capitalization of $37.92 billion. The company employs 27,400 people, generates revenue of $14.202 billion and has a net income of $1.875 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.871 billion. The EBITDA margin is 20.22 percent (the operating margin is 16.14 percent and the net profit margin 13.20 percent).

Financial Analysis: The total debt represents 17.26 percent of the company’s assets and the total debt in relation to the equity amounts to 38.28 percent. Due to the financial situation, a return on equity of 23.06 percent was realized. Twelve trailing months earnings per share reached a value of $4.07. Last fiscal year, the company paid $1.76 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.33, the P/S ratio is 2.74 and the P/B ratio is finally 4.39. The dividend yield amounts to 2.40 percent and the beta ratio has a value of 0.71.

Long-Term Stock Price Chart Of Syngenta AG (SYT)
Long-Term Dividend Payment History of Syngenta AG (SYT)
Long-Term Dividend Yield History of Syngenta AG (SYT)


Take a closer look at the full list of the safest basic material stocks. The average P/E ratio amounts to 21.38 and forward P/E ratio is 15.96. The dividend yield has a value of 3.92 percent. Price to book ratio is 3.22 and price to sales ratio 2.27. The operating margin amounts to 16.97 percent and the beta ratio is 0.66. Stocks from the list have an average debt to equity ratio of 1.35.

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

20 Safest Basic Material Dividend Stocks (Click to enlarge)

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Related stock ticker symbols:
ETP, EC, KMP, TOT, OKS, NEM, EPD, ETE, PAA, SE, MMP, ABX, SQM, CVX, ENB, XOM, SNP, PX, SYT, GG

Selected Articles:

*I am long PX. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.