Best dividend large-cap basic materials stocks for 2025

Large-cap basic materials companies with strong dividend yields offer a compelling investment opportunity for those seeking income and stability. This article highlights top-tier basic materials firms recognized for their financial resilience and shareholder-focused dividend strategies.

Steel Dynamics, a leading steel producer, stands out for its efficient operations and robust dividend payouts, backed by consistent demand in construction and manufacturing. Reliance Industries, a global conglomerate, showcases its dividend potential through diverse revenue streams spanning energy, petrochemicals, and retail. Nucor Corporation, another giant in the steel sector, continues to deliver reliable dividends thanks to its industry leadership and focus on innovation.

For 2025, these large-cap basic materials stocks represent the perfect blend of income generation and long-term growth, making them worthy additions to any well-balanced portfolio.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • Steel Dynamics (NYSE:STLD)

    Steel Dynamics, Inc. is a leading steel producer headquartered in Fort Wayne, Indiana. Founded in 1993, the company has rapidly grown to become one of the largest steel producers in the United States. Steel Dynamics operates multiple steel mills and recycling facilities across North America, supplying a wide range of steel products to industries such as automotive, construction, and energy.

    The company specializes in the production of carbon steel products, including flat-rolled and long products, as well as the recycling of scrap metal into high-quality steel. Steel Dynamics is known for its advanced manufacturing technologies and commitment to sustainability, producing steel with a focus on energy efficiency and reduced environmental impact. With a strong emphasis on innovation and customer satisfaction, Steel Dynamics continues to be a key player in the global steel industry.

    Steel Dynamics financial statements

    Analysts recommendation: 1.81

    Financial Health

    • Return on assets (ROA): 7.56%
    • Return on equity (ROE): 13.08%
    • Return on investment (ROI): 9.29%

    Profitability

    • Gross margin: 13.12%
    • Operating margin: 8.52%
    • Net profit margin: 6.8%

    Growth

    • EPS (past 5 years): 26.49%
    • EPS (current): 7.57
    • EPS estimate (next quarter): 2.75
    • EPS growth (this year): 1.68%
    • EPS growth (next year): 25.54%
    • EPS growth (next 5 years): 14.42%
    • EPS growth (quarter-over-quarter): -60.71%
    • Sales growth (past 5 years): 10.88%
    • Sales growth (quarter-over-quarter): -6.92%

    💡 Why invest in Steel Dynamics?

    Several key factors make Steel Dynamics an attractive prospect for investors seeking exposure to the ever-evolving steel industry with a focus on sustainability:

    • Steel Leadership: Steel Dynamics stands as a recognized leader in sustainable steel production using electric arc furnace technology and recycled scrap materials, translating into significant market share and brand recognition.
    • Innovation Focus: Steel Dynamics prioritizes research and development, constantly innovating to create lighter, stronger, and more environmentally friendly steel products, positioning the company for future growth.
    • Steel Portfolio: Steel Dynamics offers a comprehensive suite of flat-rolled steel products, long products, and fabricated steel solutions, catering to various construction and manufacturing needs across multiple industries.
    • Customer Relationships: Steel Dynamics fosters long-term relationships with major manufacturers and construction companies, ensuring a steady stream of demand for its sustainable steel products and services.

    🐌 Key considerations before investing in Steel Dynamics

    While Steel Dynamics navigates the dynamic steel industry landscape with its leadership in sustainable steel production, focus on innovation, and strong customer relationships, there are challenges to consider before investing in this venture:

    • Cyclical Demand: Economic slowdowns can lead to decreased demand for construction and manufactured goods, impacting Steel Dynamics' sales and profitability, requiring careful monitoring of economic indicators.
    • Raw Material Volatility: Steel Dynamics' production processes rely heavily on various recycled metals and virgin materials, with price fluctuations in these raw materials potentially impacting profit margins.
    • Sector Competition: The steel manufacturing sector presents a competitive landscape with established players and emerging companies vying for market share, necessitating continuous innovation and strategic positioning.

    Final thoughts on Steel Dynamics

    Steel Dynamics' leadership in sustainable steel production, innovation focus, product diversification, and strong customer relationships create compelling opportunities for investors seeking exposure to environmentally responsible steel manufacturing. However, economic sensitivity, material cost fluctuations, and market competition require careful evaluation of cyclical risks and competitive positioning. Like a master steelworker who forges strength through precise temperature control and timing, Steel Dynamics combines operational excellence with sustainable practices to deliver value in the evolving steel industry.

  • Nucor (NYSE:NUE)

    Nucor Corporation is one of the largest steel manufacturers in the United States, headquartered in Charlotte, North Carolina. Founded in 1940, Nucor has grown to become a leader in the production of steel products, serving a wide range of industries including construction, automotive, and energy. The company operates numerous mills across North America and has a strong focus on sustainability and innovation within the steel industry.

    Specializing in the production of carbon and alloy steel products, Nucor's offerings include flat-rolled, long products, and structural steel. The company is known for its efficient and environmentally friendly mini-mill technology, which allows for the recycling of scrap metal into high-quality steel. With a commitment to operational excellence and customer satisfaction, Nucor continues to be a major force in the steel production sector, driving both industry growth and sustainability.

    Nucor financial statements

    Analysts recommendation: 1.69

    Financial Health

    • Return on assets (ROA): 3.88%
    • Return on equity (ROE): 6.54%
    • Return on investment (ROI): 4.98%

    Profitability

    • Gross margin: 10.65%
    • Operating margin: 7.12%
    • Net profit margin: 4.38%

    Growth

    • EPS (past 5 years): 15.38%
    • EPS (current): 5.62
    • EPS estimate (next quarter): 2.23
    • EPS growth (this year): -5.04%
    • EPS growth (next year): 31.84%
    • EPS growth (next 5 years): 14.76%
    • EPS growth (quarter-over-quarter): -80.62%
    • Sales growth (past 5 years): 6.35%
    • Sales growth (quarter-over-quarter): -3.77%

    💡 Why invest in Nucor?

    Several factors make Nucor an attractive prospect for investors seeking exposure to the vital steel industry:

    • Industry Leadership: Nucor's position as the leading U.S. steel producer ensures a steady stream of revenue and strong market presence, backed by decades of operational excellence and strategic positioning.
    • Environmental Leadership: Their commitment to recycling and minimizing environmental impact positions them well as the industry embraces greener practices, utilizing advanced mini-mill technology and sustainable processes.
    • Operational Excellence: Nucor's continual investment in technology and innovation helps optimize production processes, leading to cost-effectiveness and competitive advantages through advanced manufacturing.
    • Supply Integration: From raw materials to finished products, Nucor controls much of their supply chain, providing greater control over quality and costs while ensuring reliable delivery and customer satisfaction.

    🐌 Key considerations before investing in Nucor

    The steel industry presents its own set of challenges:

    • Market Cyclicality: Demand for steel can fluctuate depending on economic conditions and construction activity, impacting Nucor's revenue streams and requiring careful management of production capacity and inventory levels.
    • Global Competition: The global steel market faces intense competition from foreign producers with lower cost structures, potentially affecting Nucor's pricing power and market share in key industrial segments.
    • Input Price Volatility: Fluctuations in the price of iron ore, scrap metal, and other raw materials can significantly impact Nucor's profitability and require effective hedging strategies to manage cost volatility.
    • Policy Compliance: Environmental regulations and trade policies can influence Nucor's operations and costs, requiring ongoing compliance investments and adaptation to changing regulatory frameworks and policies.

    Final thoughts on Nucor

    Nucor's industry leadership, sustainability focus, operational excellence, and supply integration create compelling opportunities for investors seeking exposure to American steel manufacturing and industrial growth. However, market cyclicality, global competition, material cost volatility, and regulatory challenges require careful evaluation of industry dynamics and economic conditions. Like a master blacksmith who transforms raw materials into essential tools through skill and precision, Nucor combines advanced technology with operational expertise to forge value in the competitive steel industry.

  • Kinross Gold (NYSE:KGC)

    Kinross Gold Corporation is a Canadian-based senior gold mining company with a diversified portfolio of mines and projects across the Americas, West Africa, and Russia. Founded in 1993 and headquartered in Toronto, the company has established itself as one of the world's leading gold producers with a focus on responsible mining practices and operational excellence. Kinross has built a strong track record of delivering consistent gold production while maintaining cost discipline and pursuing strategic growth opportunities through exploration and development.

    The company operates multiple gold mines including Paracatu in Brazil, Round Mountain in Nevada, Tasiast in Mauritania, and Kupol in Russia, among others. Kinross focuses on maximizing free cash flow generation through operational efficiency improvements, cost optimization, and strategic capital allocation. With a commitment to environmental stewardship and community engagement, the company aims to create long-term value for stakeholders while maintaining its position as a reliable gold producer in an increasingly competitive mining landscape.

    Kinross Gold financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 5.4%
    • Return on equity (ROE): 9.8%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: N/A
    • Operating margin: N/A
    • Net profit margin: 12.5%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current):
    • EPS estimate (next quarter):
    • EPS growth (this year): N/A
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): N/A

    💡 Why invest in Kinross Gold?

    Kinross Gold shines like a well-polished nugget in the mining sector, offering investors multiple pathways to precious metal prosperity:

    • Geographic Diversification: Kinross operates mines across multiple continents including North America, South America, West Africa, and Russia, reducing single-country political and operational risks while accessing diverse ore bodies.
    • Cost Management Excellence: The company has demonstrated strong cost discipline with competitive all-in sustaining costs, enabling profitable operations even during periods of lower gold prices and market volatility.
    • Strong Cash Generation: Kinross maintains robust free cash flow generation capabilities supported by efficient operations and strategic capital allocation, providing flexibility for debt reduction and shareholder returns.
    • Gold Price Leverage: As a pure-play gold producer, Kinross offers direct exposure to gold price movements, benefiting from inflation hedging demand and central bank purchasing during economic uncertainty periods.

    🐌 Key considerations before investing in Kinross Gold

    Even the most lustrous gold can tarnish under certain conditions, and Kinross faces several mining industry headwinds:

    • Geopolitical Risk Exposure: Operations in politically sensitive regions including Russia and West Africa expose Kinross to regulatory changes, sanctions, and operational disruptions that could impact production and profitability.
    • Commodity Price Volatility: Gold price fluctuations directly impact revenues and profitability, creating earnings volatility and making financial planning challenging during periods of weak precious metals demand.
    • Regulatory Compliance: Mining operations face increasing environmental regulations and community opposition, requiring significant capital investments in compliance and potentially limiting expansion opportunities.
    • Resource Depletion: As existing mines mature, Kinross must continuously invest in exploration and development to replace depleted reserves, creating ongoing capital requirements and execution risks for future production.

    Final thoughts on Kinross Gold

    Kinross Gold provides investors with diversified exposure to global gold production through its geographically spread operations and cost-efficient mining practices. While the company benefits from strong cash generation and gold price leverage, geopolitical risks and commodity volatility present ongoing challenges. Like a seasoned prospector with multiple claims, Kinross offers both the promise of precious metal profits and the inherent risks of mining in an unpredictable world.

  • Agnico Eagle Mines (NYSE:AEM)

    Agnico Eagle Mines Limited is a senior Canadian gold mining company with operations and exploration activities in Canada, Finland, Mexico, and Australia. Founded in 1957 and headquartered in Toronto, the company has established itself as one of the world's premier gold producers with a strong track record of operational excellence and financial performance. Agnico Eagle operates multiple high-quality, long-life gold mines and has built a reputation for responsible mining practices and sustainable development.

    The company specializes in gold mining and exploration, with a diversified portfolio of producing mines including operations in Quebec, Nunavut, Finland, and Mexico. Agnico Eagle focuses on maintaining low-cost operations, extending mine life through exploration success, and developing new projects to sustain long-term production growth. With a commitment to environmental stewardship, community engagement, and shareholder value creation, the company continues to strengthen its position as a leading gold producer in the global mining industry.

    Agnico Eagle Mines financial statements

    Analysts recommendation: 2.1

    Financial Health

    • Return on assets (ROA): 4.8%
    • Return on equity (ROE): 8.2%
    • Return on investment (ROI): 6.1%

    Profitability

    • Gross margin: 38.5%
    • Operating margin: 18.7%
    • Net profit margin: 12.4%

    Growth

    • EPS (past 5 years): 22.8%
    • EPS (current): 2.85
    • EPS estimate (next quarter): 0.72
    • EPS growth (this year): 15.2%
    • EPS growth (next year): 18.5%
    • EPS growth (next 5 years): 12.5%
    • EPS growth (quarter-over-quarter): 8.3%
    • Sales growth (past 5 years): 14.2%
    • Sales growth (quarter-over-quarter): 12.1%

    💡 Why invest in Agnico Eagle Mines?

    Agnico Eagle's diversified mining portfolio and operational excellence create compelling opportunities for investors seeking exposure to gold production and precious metals markets:

    • Mining Excellence: Agnico Eagle operates high-quality, long-life gold mines across stable jurisdictions including Canada and Finland, providing predictable production and reducing operational risks effectively.
    • Production Growth: The company maintains a strong pipeline of development projects and exploration opportunities, with consistent reserve replacement and mine life extensions supporting sustainable production growth over time.
    • Cost Leadership: Agnico Eagle achieves competitive all-in sustaining costs through operational efficiency and strategic capital allocation, maintaining profitability during lower gold price periods.
    • Gold Exposure: As a pure-play gold producer, Agnico Eagle offers direct exposure to gold price appreciation while benefiting from the metal's role as an inflation hedge and safe-haven asset during economic uncertainty.

    🐌 Key considerations before investing in Agnico Eagle Mines

    Despite its operational strengths, Agnico Eagle faces significant challenges that investors should carefully evaluate before making investment decisions:

    • Gold Volatility: The company's financial performance is directly tied to gold price fluctuations, creating earnings volatility and making financial planning challenging during periods of weak precious metals demand.
    • Mining Risks: Gold mining operations face inherent geological, environmental, and operational risks including resource depletion, equipment failures, and regulatory compliance that can disrupt production and increase costs.
    • Capital Intensity: Mining operations require substantial capital investments for exploration, development, and maintenance, creating ongoing funding requirements and execution risks that impact returns.
    • Compliance Challenges: Mining operations face complex environmental regulations, permitting requirements, and community relations challenges that can impact project development timelines and increase compliance costs.

    Final thoughts on Agnico Eagle Mines

    Agnico Eagle's mining excellence, production growth potential, and cost leadership create attractive opportunities for investors seeking exposure to gold production and precious metals markets. However, gold price volatility, mining risks, and capital intensity warrant careful evaluation of commodity cycles and operational execution. Like a skilled prospector who combines geological expertise with operational discipline, Agnico Eagle leverages its mining capabilities to extract value from precious metal deposits while navigating the complex dynamics of global commodity markets.

  • RPM International (NYSE:RPM)

    RPM International Inc. is a global leader in specialty coatings and sealants, headquartered in Medina, Ohio. Founded in 1947, the company has expanded to become a major player in the coatings industry, with a broad portfolio of brands and products across multiple sectors. RPM International operates in more than 160 countries, serving customers in industries such as construction, automotive, and industrial manufacturing.

    The company specializes in the development, production, and distribution of high-performance coatings, sealants, and related products. RPM International's brands include well-known names such as Rust-Oleum, Tremco, and DAP, offering solutions for both consumer and professional markets. With a strong commitment to innovation, sustainability, and product quality, RPM International continues to lead the way in providing coatings and sealants that enhance performance, durability, and aesthetics across a wide range of applications.

    RPM International financial statements

    Analysts recommendation: 2.06

    Financial Health

    • Return on assets (ROA): 9.86%
    • Return on equity (ROE): 25.53%
    • Return on investment (ROI): 12.66%

    Profitability

    • Gross margin: 41.09%
    • Operating margin: 12.12%
    • Net profit margin: 8.78%

    Growth

    • EPS (past 5 years): 17.81%
    • EPS (current): 4.99
    • EPS estimate (next quarter): 1.59
    • EPS growth (this year): 4.73%
    • EPS growth (next year): 8.44%
    • EPS growth (next 5 years): 8.33%
    • EPS growth (quarter-over-quarter): -14.89%
    • Sales growth (past 5 years): 5.68%
    • Sales growth (quarter-over-quarter): -3.05%

    💡 Why invest in RPM International?

    RPM International offers several potential advantages for investors seeking exposure to the building and construction materials industry:

    • Market Diversification: RPM operates across multiple segments including consumer, construction, and industrial markets, reducing reliance on any single industry while providing stability through diverse revenue streams.
    • Brand Portfolio: The company owns several well-known brands such as Rust-Oleum, DAP, and Zinsser, enhancing market penetration and customer loyalty while commanding premium pricing in specialty coating and sealant markets.
    • International Presence: RPM maintains a global presence across more than 160 countries, enabling it to capitalize on growth opportunities in various regions while diversifying geographic risk and accessing emerging markets.
    • Dividend History: The company maintains a history of increasing dividends and consistent shareholder returns, making it attractive to income-oriented investors seeking reliable cash flow and long-term wealth building.

    🐌 Key considerations before investing in RPM International

    However, before investing in RPM, it's crucial to consider these potential challenges:

    • Economic Cyclicality: The construction and industrial sectors can be cyclical and sensitive to economic conditions, impacting demand for RPM's products during economic downturns and affecting revenue growth and profitability.
    • Market Rivalry: The coatings and sealants market is highly competitive with both established players and new entrants vying for market share, pressuring margins and requiring continuous innovation and marketing investment.
    • Input Costs: Fluctuations in the price of raw materials such as resins and chemicals can significantly impact profitability, requiring effective cost management and pricing strategies to maintain margins.
    • Environmental Standards: Environmental regulations and safety standards can influence product development costs, manufacturing processes, and market access, requiring ongoing investment in compliance and product reformulation.

    Final thoughts on RPM International

    RPM International's diversified product portfolio, strong brand recognition, and global reach make it an attractive investment for those seeking exposure to the building and construction materials industry. However, the cyclical nature of the industry, competition, raw material costs, and regulatory environment necessitate careful consideration. Thorough research on RPM's product innovation, market expansion plans, and financial performance is crucial before investing.

If you are interested in other stock categories, check out my other lists of the best dividend large-cap utility, tech, retail, industrial, healthcare, financial, energy, basic materials stocks.