This article presents an overview of the 5 Best Materials Dividend Stocks To Buy Now. For a detailed overview, read our article 12 Best Materials Dividend Stocks To Buy Now.
5. PPG Industries Inc (NYSE:PPG)
Number of Hedge Funds: 49
Paints and specialty materials company PPG Industries Inc (NYSE:PPG) has a dividend yield of 1.82% as of December 6. In October PPG Industries Inc (NYSE:PPG) posted Q3 results. Adjusted EPS in the period came in at $2.07, beating estimates by $0.13.
Out of the 910 hedge funds tracked by Insider Monkey, 49 hedge funds had stakes in PPG Industries Inc (NYSE:PPG). Andreas Halvorsen’s Viking Global is the biggest stakeholder of PPG Industries Inc (NYSE:PPG) with a $525 million stake in PPG Industries Inc (NYSE:PPG).
ClearBridge Large Cap Value Strategy made the following comment about PPG Industries, Inc. (NYSE:PPG) in its Q2 2023 investor letter:
“We were fairly active in the quarter as market dislocations allowed us to be opportunistic, while focusing on companies with stronger moats, better pricing power, more predictable long-term growth and higher returns. In the materials sector we exited PPG Industries, Inc. (NYSE:PPG) and initiated a position in Sherwin-Williams. While both companies operate in the paint and coating industry and are benefiting from improving margins as raw material prices have come down of late, we believe Sherwin-Williams’ dominant retail footprint affords it better pricing power through the cycle. The company provided conservative 2023 guidance and has been successfully gaining market share in the pro segment. While PPG has more European and industrial exposure, Sherwin-Williams’ residential and more domestic focus should also benefit the company as housing indicators appear to be troughing. Weak housing in the face of higher mortgage rates caused Sherwin-Williams stock to sell off in the first quarter, creating a compelling investment opportunity for long-term focused fundamental investors.”
4. Newmont Corporation (NYSE:NEM)
Number of Hedge Funds: 49
Newmont Corporation (NYSE:NEM) is an important part of the wider basic materials industry. The stock has a dividend yield of about 4%. Newmont Corporation (NYSE:NEM) was one of the stock that enjoyed an industry-wide boost in gold stocks after the precious metal broke the $2,000/oz barrier.
Newmont Corporation (NYSE:NEM) talked about its dividend policies during its Q3 earnings call:
This quarter, we declared a dividend of $0.40 per share or $1.60 per share on an annualized basis. This dividend was declared within our established framework calibrated at a gold price of $1,700 million per ounce and in line with our 2023 dividend payout range of $1.40 to $1.80 per share. Newmont had paid over $5 billion in dividends since closing the Goldcorp transaction in 2019, demonstrating our commitment to our shareholders. On the close of the Newcrest acquisition, Newmont will integrate 5 new operations into our robust global operating model.
February of next year, we expect to provide our 2024 outlook for the combined company with our fourth quarter and full year results. Consistent with our process, our outlook will inform our 2024 dividend payout range, which we will calibrate within our established dividend framework. As a reminder, we assess the variable portion of our dividends annually in alignment with the business planning cycle, projected cash flows and the current macroeconomic environment. Similar to this year, our 2024 dividend payout range will apply to our fourth quarter dividend to be declared in February and will be reviewed and approved by our Board of Directors each quarter. For a longer-term view of our portfolio, we will apply a disciplined and thoughtful approach to setting market guidance for the combined company.
Read the full earnings call transcript here.
3. Ecolab Inc (NYSE:ECL)
Number of Hedge Funds: 53
Water purification services company Ecolab Inc (NYSE:ECL) has a dividend of 1.12% as of December 6. A total of 53 hedge funds tracked by Insider Monkey had stakes in Ecolab Inc (NYSE:ECL). The most significant stakeholder of Ecolab Inc (NYSE:ECL) is Michael Larson’s Bill & Melinda Gates Foundation Trust which owns an $884 million stake in the company.
ClearBridge Sustainability Leaders Strategy made the following comment about Ecolab Inc. (NYSE:ECL) in its Q2 2023 investor letter:
“A rebound for materials in June was helpful for water and hygiene solution company Ecolab Inc. (NYSE:ECL), where strong pricing and productivity gains are more than offsetting ongoing inflationary pressure, as well as aluminum packaging company Ball, which rose on reports of a possible sale of its aerospace unit.”
2. Linde Plc (NASDAQ:LIN)
Number of Hedge Funds: 71
Ireland-based chemicals company Linde Plc (NASDAQ:LIN) has a dividend yield of 1.26% as of December 6. BofA recently counted Linde Plc (NASDAQ:LIN) among the bullish stocks to watch by the end of this year. BofA has a price target of $387.10 on the stock.
1. Freeport-McMoRan (NYSE:FCX)
Number of Hedge Funds: 73
Freeport-McMoRan (NYSE:FCX) is a comparatively low dividend yield stock in our list. However hedge funds love this stock due to its performance and growth catalysts. Over the past five years the stock has gained about 234%. A total of 73 hedge funds tracked by Insider Monkey had stakes in Freeport-McMoRan (NYSE:FCX) as of the end of the third quarter.
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