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.
