These TSX-listed mining stocks currently offer a potential for capital gains, as well as a steady stream of income through dividend payouts
SmallCapPower | May 11, 2016: In large part, the commodities market is said to have troughed this year. We have already seen gold prices surge nearly 20% YTD, with additional gains forecasted by analysts as the USD continues to fall. Investors, then, who are planning for a steady stream of income may want to incorporate some dividend-paying resource stocks into their portfolios. Even if the recovery takes longer than anticipated, investors can get paid to wait – never a bad thing. Today we have identified three resource-related stocks that currently have superior dividend yields.
Labrador Iron Ore Royalty Corp. (TSE:LIF) – $12.56
Iron & Steel
Labrador Iron Ore Royalty Corporation (LIORC) is a Canada-based mining company that owns interests in the Iron Ore Company of Canada (IOC), which operates an iron mine near Labrador City, Newfoundland and Labrador on lands leased from LIORC. The Company through its wholly-owned subsidiary, Hollinger-Hanna Limited, owns a 15.10% equity interest in IOC and receives a 7% gross overriding royalty on all iron ore products produced from the leased lands, sold and shipped by IOC and commissions on sales of iron ore by IOC.
Market Cap: $803,840,000
Dividend Yield (LTM): 8.2%
Potash Corporation of Saskatchewan (TSE:POT) – $20.87
Potash Corporation of Saskatchewan Inc. is a fertilizer producer, producing various primary crop nutrients, such as potash, nitrogen and phosphate. The Company operates through three segments: potash, nitrogen and phosphate. It owns and operates approximately five potash operations in Saskatchewan and one in New Brunswick. Its nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid.
Market Cap: $17.44 Billion
Dividend Yield (LFQ annualized): 6.6%
Nevsun Resources Ltd. (TSE:NSU) – $4.28
Specialty Mining & Metals
Nevsun Resources Ltd. is a mining company that is engaged in the acquisition, exploration, development and operation of mineral property interests. The Company’s principal property is the Bisha Property, which hosts a gold, copper and zinc deposit, and includes satellite volcanogenic massive sulfides (VMS) deposits at Harena, Northwest, Hambok, Aderat and Asheli.
Market Cap: $851,949,504
Dividend Yield (LFQ annualized): 5.2%