In this article we talk about the 5 best material dividend stocks to buy now. If you want to read our detailed analysis of the materials sector, click and read 10 Best Material Dividend Stocks To Buy Now.
5. BHP Group (NYSE: BHP)
Number of Hedge Fund Holders: 20
Dividend Yield: 5.61%
BHP is one of the biggest mining companies in the world. The Australia-based company produces various commodities, including iron ore, metallurgical coal, copper and uranium. With a dividend yield of 5.6% and market cap of $196 billion, BHP is one of the best material dividend stocks to buy now. In January, the company posted a 6% year-over-year increase in iron ore production for the six months ended Dec. 31. On March 1, the company declared a dividend of $2.02/ADS.
According to our database, the number of BHP Group’s long hedge funds positions increased at the end of the fourth quarter of 2020. There were 20 hedge funds that hold a position in BHP by the end of December, compared to the 18 funds in the third quarter. The biggest stakeholder of the company is Fisher Asset Management, with 7.8 million shares, worth $509.7 million.
4. Reliance Steel & Aluminum Co. (NYSE: RS)
Number of Hedge Fund Holders: 27
Dividend Yield: 1.97%
Reliance Steel is one of the best material dividend stocks to buy now, as the company has paid regular dividends for 61 consecutive years without suspensions. Reliance Steel deals in metals like aluminum, brass, alloy, copper, titanium, carbon steel, stainless steel and also provides services related to metals processing. The Fortune 500 company recently posted Q4 results, beating the analysts’ forecast for EPS, while revenue came in-line with the Street’s forecasts.
Royce & Associates is one of the 27 hedge funds tracked by Insider Monkey who held stakes in the company at the end of the fourth quarter of 2020. The fund owns 477,846 shares of the company, having a total worth of $57.2 million.
3. Nucor Corporation (NYSE: NUE)
Number of Hedge Fund Holders: 29
Dividend Yield: 2.63%
North Carolina-based Nucor is one of the biggest steel companies in the U.S. The company also operates about 23 scrap-based steel production mills. In 2019, the company sold about 18.6 million tons of steel and recycled 17.8 million tons of scrap. The company has increased its regular or base dividend for 48 consecutive years. In the last 10 years, Nucor has returned a whopping $6 billion in capital to its stockholders in the form of buybacks and dividends.
There were 29 hedge funds in our database that held stakes in Nucor Corporation, compared to 28 funds in the third quarter. D E Shaw is the biggest stakeholder in the company.
2. Vulcan Materials Company (NYSE: VMC)
Number of Hedge Fund Holders: 44
Dividend Yield: 0.86%
Vulcan Materials is one of the best material dividend stocks to buy now. The company sells gravel, crushed stone, sand and other construction materials. On Feb. 12, the company increased its quarterly dividend by 8.8%. In the fourth quarter, Vulcan Materials earned $1.07 per share, beating the Street’s consensus by $0.08. Revenue in the period came in at $1.18 billion, beating the Wall Street by $20 million.
As of the end of the fourth quarter, 44 hedge funds in Insider Monkey’s database of 887 funds held stakes in Vulcan Materials Company, compared to 42 funds in the third quarter. Egerton Capital Limited is the biggest stakeholder in the company, with 1.7 million shares, worth $250.1 million.
1. The Sherwin-Williams Company (NYSE: SHW)
Number of Hedge Fund Holders: 49
Dividend Yield: 0.95%
Ohio-based Sherwin-Williams is one of the best material dividend stocks to buy now. The company makes paints, coatings and floor coverings. It has raised its dividend for 42 consecutive years. In February, the company increased its quarterly cash dividend by 23.1%. Its board recently approved a three-for-one stock split.
The Sherwin-Williams Company tops the list of 10 material dividend stocks to buy now as 49 hedge funds tracked by Insider Monkey held stakes in the company at the end of the fourth quarter of 2020. Chilton Investment Company is the biggest stakeholder in the company, with 415,447 shares, worth $305.3 million.
In one of their 2020 investor letters, Diamond Hill Capital highlighted a few stocks and Sherwin-Williams Co (NYSE:SHW) is one of them.
Here is what Diamond Hill Capital said about the company:
“We initiated a position in high-quality paints and coatings retailer Sherwin-Williams Co. Sherwin’s crown jewel is its North American paint stores, which cater primarily to professional painting contractors. There has been a two-decade trend of homeowners hiring painting contractors instead of doing it themselves, which we believe is likely to continue. The pricing power of Sherwin-branded paint is very strong and the store network, which continues to expand, generates very strong returns on invested capital. Longer term, there is additional opportunity to improve margins from businesses acquired from Valspar.”
You can also take a peek at Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021 and Billionaire Julian Robertson’s Top 10 Stocks.
