Do stock options pay dividends

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The construction materials industry is a tough place for income investors.

That's because these companies operate capital-intensive businesses that consume a significant portion of their operating cash dividends. Meanwhile, what free cash flow these companies do generate often gets allocated toward share options and acquisitions over dividends. CXdon't currently pay a dividend. In Cemex's case, it ceased paying a cash dividend during the financial crisis and has redirected that cash toward debt reduction and other priorities ever since.

Meanwhile, stock that do return cash to shareholders only pay a pittance:. Here's a closer look at where the cement stock top three dividend payers spend their cash instead of allocating more toward the payout.

That's about how much cash flow stock companies allocate toward dividends each year. Eagle Materials allocated that cash flow toward several initiatives. The company could have used that cash flow to pay a generous dividend to investors. The materials producer allocated the rest of its cash options share repurchases and acquisitions.

That deal aside, Eagle Materials clearly favors share buybacks over dividends when it comes to returning cash to investors. Unless that pay changes, the company probably won't hold much appeal to income investors.

Martin Marietta Materials produces a variety options building materials including aggregates, cement, ready-mixed concrete, and asphalt. Like Eagle Materials, Martin Marietta has been on a record run lately pay to robust demand for those materials. In the first quarter offor example, sales were up 7. That said, Stock Marietta also favors stock repurchases when it comes to returning cash to shareholders. That continued the company's trend of allocating excess cash flow options buying back stock.

For example, during and Martin Marietta returned four times more cash to investors via a buyback than it did in dividend payments.

Unless that preference changes, income investors shouldn't expect more than a paltry payout from Martin Marietta Materials. Vulcan Materials produces a variety of construction materials, including being a significant producer of Portland pay concrete. Because of that, the company has stock substantial cash flow from operations to use as it sees fit.

However, paying a dividend wasn't Vulcan Materials' top priority for that cash stock. Because Vulcan Materials has dividends a priority on growth and repurchasing stock, its dividends will remain rather unappealing pay income investors. As the top-yielding concrete stocks clearly show, the sector isn't the best place for income-seeking investors to go searching for dividends. Pay because these companies spend a significant percentage of dividends cash flow on capex just to keep their plants running in tip-top shape.

After that, cement producers prioritize free cash flow toward acquisitions and share repurchases over dividends. That's why the top dividend-paying options in the sectors don't have very dividends yields when compared to what income investors can earn in other industries.

Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Eagle Materials. The Motley Fool has a disclosure policy. Matthew is a Senior Energy and Materials Specialist with The Motley Fool. He pay from dividends Liberty University with a degree in Biblical Studies and a Masters of Business Administration.

You can follow him on Twitter for the latest dividends and analysis of pay energy and materials industries: Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login.

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May 23, at Cement Stock Ticker Symbol Options Yield Eagle Materials NYSE: Martin Marietta Materials NYSE: Prev 1 2 options 4 Next. Motley Fool push notifications are finally here Pay push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to dividends You can unsubscribe at any time.