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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 are 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, 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:

1. Southern Copper (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).

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.

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.

2. BHP Billiton (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).

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.

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.

3. Freeport-McMoRan Copper (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).

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.

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.

Take a closer look at the full table of most profitable basic material dividend stocks. 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.

Related stock ticker symbols:

TNH, BPT, SCCO, ARLP, AHGP, BBL, RES, BHP, CEO, FCX, KRO, BVN, POT

Selected Articles:

· Basic Material Stocks With Strongest Earnings Forecasts And Good Dividends

· 11 Basic Material Dividend Stocks With Buy Or Better Rating

· Best Yielding Basic Material Wholesale Stocks

· 12 Basic Material High Yields With Very Low Beta Ratios

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 3.2/5 (5 votes)

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