The copper dividend stocks we’ve uncovered could be stellar performers in a cleaner technology economy
SmallCapPower | October 27, 2020: Copper prices hit a two-year high recently on supply concerns from Chile and signs of strengthening economic growth in China. Copper is also a key raw material that is expected to power a green energy economy, as each tonne of copper contributes to an annual reduction of up to 7,500 tonnes of CO2, according to the European Institute. Today we have dug up three copper dividend stocks that are expected to be solid, long-term performers, paying investors as they wait for capital gains.
*Returns are based on closing stock prices as of October 26, 2020
Lundin Mining Corporation (TSX:LUN) – $8.23
Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States, producing primarily copper, zinc, gold and nickel. The Company’s flagship locations include the Eagle mine located in the United States, the Neves-Corvo mine in Portugal, and the Zinkgruvan mine in Sweden. Lundin considers itself a copper-dominant company. LUN has a current dividend yield of 1.9%.
- One-Year Return: 25%
Rio Tinto Plc (NYSE:RIO) – US$58.28
Rio Tinto is the world’s second-largest metals and mining company, with operations in 36 countries, producing iron ore, aluminum, copper, diamonds, titanium, and borates. During the first half of 2020, Rio Tinto generated $2.8 billion in free cash flow. RIO has a current dividend yield of 5.2% with a payout ratio of 53%.
- One-Year Return: 23%
Teck Resources Limited (TSX:TECK.B) – $17.60
Teck Resources is a diversified resource company focused on the production of copper, steelmaking coal and zinc. The Company also has investments in energy assets, but derives a large segment of its revenue from copper. During its second-quarter 2020, Teck realized $250 million in operating cost reductions and $430 million in capital cost reductions to date, even as COVID-19 weighed on its financial results. TECK.B has a current dividend yield of 1.1%.
- One-Year Return: – 19%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
