Analysis: Wall Street’s Top Analysts Highlight 3 Materials Stocks With >4% Dividend Yields

The January 6, 2026 Benzinga report [1] comes at a time when investors often seek dividend-yielding stocks for stability amid market turbulence. The three highlighted materials sector stocks—SON (packaging & containers), EMN (specialty chemicals), and TX (steel)—exhibit varied but notable performance traits:

• All three traded positively on the day (+0.21% to +0.63% [0]), with SON and EMN posting strong 1-month gains (+10.45% and +5.77% respectively [0]) and TX delivering exceptional 6-month (+23.45%) and 1-year (+31.04%) returns [0].
• Their dividend yields (>4% [0]) stand well above the S&P 500’s ~1.5-2% average [0], making them attractive for income-focused investors.
• Analyst consensus rates all three as “BUY,” with target prices indicating potential upside: SON (+11.5% [0]), EMN (+15.2% [0]), and TX (+1.3% [0]).
  Financially, SON and EMN show relative stability—SON has a low P/E (7.26x TTM) and strong ROE (22.30% [0]), while EMN has diversified revenue streams and healthy operating margins (13.19% [0]). TX, in contrast, is undervalued on P/B (0.64x TTM [0]) but has volatile earnings and low profitability metrics [0].

1. Dividend Yield Premium Amid Market Uncertainty
   : The >4% yields of these stocks provide a meaningful income buffer compared to broader market benchmarks, which is particularly valuable during turbulent periods [0].
2. Sub-Sector Diversification within Materials
   : The stocks span packaging, specialty chemicals, and steel—mitigating some sector-specific risks by exposing investors to different end markets (consumer goods, advanced materials, construction/manufacturing) [0].
3. Valuation and Performance Disparities
   : TX’s strong long-term returns contrast with its short-term volatility and undervaluation, while SON and EMN offer more stable financial profiles with solid shorter-term gains [0].
4. Analyst Consensus Alignment
   : The “BUY” ratings from top analysts underscore market confidence in these stocks’ potential, despite sector headwinds [1, 0].

• Ternium’s Volatility
  : TX’s recent earnings volatility and low profitability (ROE 2.44%, profit margin 1.87% [0]) raise concerns about dividend stability and stock price performance.
• Sector Cyclicality
  : The materials sector is highly sensitive to global economic conditions; a downturn in manufacturing or construction could negatively impact all three stocks [0].
• Dividend Sustainability Gaps
  : Missing data on payout ratios and full dividend history limits clarity on long-term yield maintainability, especially for TX [0].
• External Factors
  : Commodity price fluctuations, interest rate changes, and (for TX) currency risks (Latin American operations) pose additional threats [0].

• Income Potential
  : Above-average dividend yields appeal to income-focused investors amid market uncertainty [0].
• Upside from Analyst Targets
  : SON and EMN have double-digit projected upside, while TX’s undervaluation may present a long-term opportunity [0].
• Shorter-Term Momentum
  : SON and EMN’s recent 1-month gains signal positive investor sentiment [0].

• Q4 FY2025 earnings reports (February 2026 for all three [0])
• Commodity price movements (steel, chemical feedstocks) [0]
• Global economic indicators (manufacturing PMIs, construction spending) [0]
• Company dividend policies and capital allocation plans [0]

The three highlighted stocks—SON, EMN, and TX—offer >4% dividend yields and “BUY” ratings from top analysts amid market turbulence. SON and EMN exhibit stable financial profiles with solid recent performance, while TX shows strong long-term returns but higher volatility. Investors should consider sector cyclicality, Ternium’s earnings risks, and gaps in dividend sustainability data, while monitoring upcoming earnings and economic indicators for decision-making context.