3 Undervalued Basic Materials Dividend Stocks

Standard & Poors shows the Basic Materials as being the 2nd worst sector year-to-date in 2011, up only .84%, lagging only the dreaded Financial sector, which was down -2.99%, as of May 25th. One might think that such poor share performance would suggest lousy future growth prospects for Basic Materials stocks, but, on the contrary, Standard & Poors shows the 2011 estimated EPS growth for this sector as second only to Energy stocks - (click charts to expand): (Data Source: Standard & Poors. EPS Estimates as of 5-18-2011) Digging back further into past years, 2006 was the record year for overall S&P earnings, and even though 2010 was a good year, only 5 out of the 10 sectors managed to exceed their 2006 aggregate EPS figures: The Basic Materials sector, along with most other sectors, is projected to beat its record 2006 Operating EPS in 2011, by over 17%, and... Read more