01. Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA)
Dividend Yield: 7.30%
Payout Ratio: N/A
Topping our list of eleven dividend stocks with over 5% yield that could rally in 2025 is Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA). Loma Negra, Argentina’s leading cement and construction materials producer, is a standout pick for dividend investors seeking both yield and resilience. With a dividend yield of 7.3% and a conservative payout ratio, this century old company offers a solid income stream while maintaining financial discipline. But there’s more than just yield here, LOMA also boasts a forward P/E of just 9.47, a debt to equity ratio of 0.23, and a PEG ratio of 0.16, signaling strong growth potential at a bargain price.
Despite Argentina’s macroeconomic challenges and a sluggish construction market in 2024, Loma Negra delivered impressive results. The company’s adjusted EBITDA hit $198 million for the year, with a margin of 25.9%, reflecting a sharp improvement in profitability thanks to cost controls and operational efficiency. In Q4 alone, EBITDA rose 2.4% despite lower volumes, and margins jumped over 600 basis points to 29%. That kind of margin expansion during a downturn is a strong vote of confidence in management’s strategy.
Financially, Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) is in great shape. Net debt dropped by $20 million, bringing its net debt to EBITDA ratio to just 0.89x, and most of its debt is dollar denominated with no major maturities until late 2025. On the cost front, Loma successfully locked in better energy rates and improved efficiencies in both electricity and fuel sourcing, key in a cost sensitive industry like cement.
Even more promising is the market outlook. After a tough start to 2024, the second half saw signs of recovery. Cement dispatches in January 2025 rose nearly 9% year over year, the first uptick in over a year, hinting that demand is beginning to rebound. As Argentina stabilizes economically and large infrastructure projects return, Loma is well positioned to benefit.
With its strong balance sheet, disciplined cost management, and high yield payout, Loma Negra is more than just a defensive play, it’s a potential turnaround story with upside in both income and capital appreciation in 2025.