Efforts to transition to electric vehicles are gaining momentum, with states like California establishing new legislation banning the sale of new combustion vehicles by 2035.
Additionally, the Science and Chips Act of 2022 will allocate billions of dollars in tax credits to semiconductor companies to build new manufacturing facilities.
Here are two high-yield materials stocks that stand to benefit from these developments in the electric vehicle and semiconductor sectors.
Southern Copper Society SCCO offers a dividend yield of 7.80% or $4.00 per share per year, using quarterly payouts, with an inconsistent history of increasing dividend payouts. Southern Copper Corp is an integrated producer of copper and other minerals such as molybdenum, silver, zinc, lead and gold, as the company operates mining, smelting and refining facilities in Peru and in Mexico.
In the second quarter, Southern Copper saw its copper production decrease by 12%, its silver production by 4%, its molybdenum production by 9%, while its zinc production decreased by 12% compared to the quarter of the previous year.
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Dow Inc. DOW offers a dividend yield of 5.10% or $2.80 per share per year, using quarterly payments, with no increase in dividends over the past year. Dow is a diversified chemical manufacturing company, with a portfolio consisting of six global business units, organized into three operating segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
In 2021, Dow had net sales of $55 billion, with 104 manufacturing sites in 31 countries, employing approximately 35,700 workers.