#1 - Rio Tinto (NYSE:RIO)
The first copper stock to consider is also the largest by market cap. Rio Tinto Group (NYSE: RIO) has a 94.3 billion market cap. The multinational miner is the second largest miner worldwide.
Like many stocks on this list, RIO stock has been on a tear since hitting its 52-week low in October 2022. As of February 21, 2023, the stock has climbed 42% - significantly better than the broader market. That has largely matched the recovery in copper prices. That recovery is muting one of the most bearish arguments against owning copper stocks.
Rio Tinto got into some trouble about 15 years ago after going on an acquisition spree. However, the company now has a hefty free cash flow and they’re not anxious to apply that to new acquisitions. That could be good for investors because that means the company’s free cash can be applied to the company’s dividend. The semi-annual dividend has a yield of over 7% as of this writing.
About Rio Tinto Group
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting.
Read More - Current Price
- $70.02
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $72.00 (2.8% Upside)
