Basic Materials Sector.
The basic materials sector includes companies involved with the discovery, development and processing of raw materials. This includes companies engaged in the mining and refining of metals, chemical production and forestry products. All of which requires access to materials, or a large capital base to process it. Put another way, it takes time, money and access for new competitors to enter the market.
The downside to the basic materials sector is its reliance on a strong economy to create demand for its products; as such, the sector is highly cyclical. Since most of its products are considered to be commodities, the sector is sensitive to supply and demand fluctuations with end-users able to substitute based on price. Historically, yields in this sector have been on the lower end of the scale.
This week week, I screened my dividend growth stocks database for Basic Materials companies with a yield at or above 3.0% and that have increased their dividends for at least 20 consecutive years. The results are presented below:
MDU Resources Group Inc. (MDU)
Yield: 3.0% | Years of Dividend Growth: 22
MDU Resources Group Inc. is involved in electric and natural gas distribution, natural gas storage, gathering and transmission, construction materials and mining, and oil and natural gas production.
Air Products And Chemicals Inc. (APD)
Yield: 3.2% | Years of Dividend Growth: 30
Air Products and Chemicals Inc. is a major producer of industrial gases and electronics and specialty chemicals with interests in environmental and energy-related businesses.
RPM International Inc. (RPM)
Yield: 3.3% | Years of Dividend Growth: 39
RPM International Inc. makes specialty coatings and products for the structural waterproofing and corrosion control markets, as well as products for the consumer, do-it-yourself, and hobby markets.
Nucor Corporation (NUE)
Yield: 3.8% | Years of Dividend Growth: 39
Nucor Corporation is the largest minimill steelmaker in the U.S., and has one of the most diverse product lines of any steelmaker in the Americas.
Sonoco Products Co. (SON)
Yield: 4.0% | Years of Dividend Growth: 29
Sonoco Products Co. makes paper and plastic packaging products serving various industries and markets in more than 85 countries.
As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 220+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long NUE. See a list of all my dividend growth holdings here.
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
For many investors, there is no clear conviction as to how they should invest. Today's investments are guided by what was read or heard ...
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force....
Linked here is a detailed quantitative analysis of Raytheon Company (RTN). Below are some highlights from the above linked analysis: Com...
Linked here is a detailed quantitative analysis of Medtronic Inc. (MDT). Below are some highlights from the above linked analysis: Compan...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Yield does not come without a price, usually in the form of added risk and/or complexity. Ultimately, dividend growth investors realize that...
If your goal is to accumulate wealth for a comfortable retirement , then there is no risk-free path. Throughout time every angle has been tr...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life