Dividends and Basic materials sector

The US basic materials stocks offer low valuations and above-average dividend yields, which is a good reason to examine the best stocks in the sector.

Gary Christie of Trading Central examined the sector with the following criteria:

the universe is the S&P 500

minimum market capitalization threshold of $2 billion to focus on the largest and most stable companies

the Price Earnings or P/E of 29 or less.

the Price to Sales ratio of 1.5 or less

dividend of 2.5% or greater

Company Mkt Cap P/E Price/ Div 1 Yr YTD Recent

$ Bil Sales Yield Perf% Perf % Price

Eastman Chemical 10.8 18.9 1.3 3.3 12.6 -0.1 79.50

Ternium SA (ADR) 3.6 16.6 0.4 6.6 – 2.4 -18.1 18.35

LyondellBassell Ind 24.3 12.0 0.8 5.8 -10.6 -23.1 72.51

Steel Dynamics 6.2 11.7 0.7 3.4 1.3 -13.8 29.32

MDU Resources 4.8 13.3 0.9 3.5 -14.0 -20.3 23.56

Comp Siderurgica Nac 3.9 11.9 1.1 2.5 -16.8 -15.4 2.95

Nucor Corp 13.9 27.6 0.7 3.5 -10.1 -18.2 45.98

Nutrien Ltd 21.7 26.0 1.1 4.7 -25.6 -20.6 38.04

Avient Corp 2.5 27.0 0.9 2.9 -18.1 -25.3 27.67

Linking to dividend paying stocks, when you buy a stock it means you did not buy something else which is ok. There are choices to be made, and the only when you look back will you know what the absolute best thing to buy is. Homework is important, lists similar to the above gives you names to examine and some of the names come up regularly which helps ensure you make a good decision. Most of us follow the industry which pays us or we have a bias toward that industry. There are many good companies for you to buy, which is the best one?

There are more questions than answers, till the next time – to raising questions.

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