The basic materials sector is sometimes overlooked by investors due to its reliance on commodity prices, global trade, and the health of the economy. Beneath the surface, however, the sector is highly diverse. For our latest addition to the Best Materials Dividend Stocks List, we chose a 2% yielding chemical manufacturing company that features a good earnings outlook and returns potential.
The chemicals industry is the single largest component of the S&P 500’s Materials Index with a market capitalization of roughly $1 trillion. While the sector is heavily influenced by economic trends, increased demand for herbicides and insecticides for food production has kept agricultural and fertilizer chemical producers extremely busy, including our latest pick that is currently witnessing strong purchasing power across its key end markets.
To make room for the chemical manufacturer, we had to remove a packaging firm from the list this week.
You can check out the Best Material Dividend Stocks List to explore all the stocks.
