5 Best Materials Dividend Stocks To Buy Now

1. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Shareholders: 56

Dividend Yield: 4.73%

Topping the list of best materials dividend stocks to buy now is Newmont Corporation (NYSE:NEM), which has raised its dividend by a hefty CAGR of 57.8% over the past five years. Its quarterly payouts now amount to $0.55, up from an average of just $0.0625 in 2017. The company’s payout ratio is now hovering around 100% however as it’s become significantly more expensive for the company to mine for gold in recent quarters.

Newmont Corporation (NYSE:NEM) adjusted EPS of $0.27 in the third quarter was only a little more than half what analysts were expecting, while its sales of $2.63 billion were down from $2.9 billion last year. In the second quarter, Newmont’s cost per ounce jumped by 23% due to intensifying energy and labor costs. However, the company doesn’t anticipate costs rising any higher, and they should be offset partially by rising gold prices over the coming year. Boasting a good portfolio of assets and a strong commitment to returning money to shareholders, Newmont is a materials dividend stock that should be on the radars of all dividend investors.

Newmont Corporation (NYSE:NEM) is the most popular materials dividend stock among hedge funds, having hit an all-time high in ownership among smart money managers during Q2. There’s been a 23% rise in the number of funds long NEM in 2022. Rajiv Jain’s GQG Partners owned 34.8 million shares of Newmont on June 30 worth $2.08 billion. The company accounted for a 5.09% stake in the fund’s 13F portfolio and ranked as its fifth-largest holding.

For more of the latest stock picks worth considering for your portfolio, check out 15 Best NASDAQ Dividend Stocks To Buy and 15 Biggest Gas Companies in the World.

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