I know naff all about mining. However one thing my portfolio lacks is exposure to minerals/metals etc. I dont wnt to buy ETFs of metals and not looking to buy physical either so looking at some mining stocks, potential to choose 1 to hold initially, leaning towrds perhaps Rio Tinto but open to recommendations.
Key factors for me are exposure to more than 1/2 metals, so ideally a miner who produces multiple essentials whether Gold/Silver/Lithium/Iron/Copper etc.
Help your freidnly bomber out then I will go research the top candidates
Glencore reinstated dividends. Looks like next one should be ex-div 22nd April (announced yesterday).
I’ve got quite a few mining stocks for dividends mainly. Will see how the increases in commodities, squeezes, nuclear and EV/battery influences will counteract typical mining cycle effects.
Currently in:
Anglo American
BHP Group
Evraz
Glencore
Polymetal International
Rio Tinto
I hold quite a few mining stocks in the interest of diversification, ranging from big players to penny stocks, but my biggest holding is Rio Tinto. It’s just so solid, look at the news about it today for example. Massive growth and huge dividend and I’m feeling really confident about their operations compared to some of the others.
I’m fortunate that all my mining stocks are up, some more than Rio (due to being much smaller), but I still plan on keep Rio as my biggest. If I was just starting to buy now though, I’d be averaging in.
The dividend wasn’t worth the risk and where the price seemed to be in the cycle for me when I looked at Fresnillo. I think the fact it’s in Gold and Silver is a large plus though as silver looks good.
I know! Not too bad for those of us that have been in a while of course but if you haven’t started your position yet, you might want to average in to it in case there’s a pull back. It’s obviously a long term dividend stock though so I’d still consider it safe to go in.
For a growing dividend stock, sometimes I want pullbacks for the higher yield on cost. Like GSK right now for example, same dividend payout, just cheaper to buy in. If you’re holding for the income, Rio’s fine to get in IMO.
No one really knows what commodity will do well or best…
It depends on what you think is coming.
If inflation, then likely precious metals (Gold, Silver, etc)
If we are going to “Build Build Build”, then metals used in construction such as copper and aluminium
If there is an oil shortage due to demand coming bac quicker than the OPEP releasing oil, then oil
If governments need a non-polluting, stable energy source and the public perceives nuclear energy as safe, then uranium
If the middle class in India grows rapidly in number and in wealth then gold might do well (apparently India and China consumers as well as central banks have been driving demand in recent years)
If we get into a massive recession then I don’t know… Any good commodities for a recession?
