New solder compositions which can have improved mechanical properties are disclosed. In a preferred embodiment, the solder comprises a matrix material and magnetically dispersed particles. A desirable dispersion of the magnetic particles in the matrix material, is accomplished by applying a magnetic field to the molten matrix material containing magnetic particles and solidifying it in the presence of the magnetic field. The particle-dispersed microstructures improve the mechanical properties of the solder composition. The improved solder composition can be made into a powder to be used in solder paste, cream or reshaped while substantially retaining the improved mechanical properties.