Two Materials Stocks for 2021

The materials sector includes metals and mining. And with gold, copper, palladium, and rare earth prices moving higher, the companies that mine them are poised to well in 2021. In mining, your costs typically are fixed, so when the value of what you’re mining goes up… what you get is leverage. 

Two stocks to get some of that leverage are:

Newmont Corporation (NYSE: NEM) — Newmont is the fifth-largest weighting in the S&P Materials Index. It is the world’s number one gold producer, slated to produce greater than seven million gold equivalent ounces per year through 2029. It also produces silver, copper, lead, and zinc. With recent higher metals prices, the bottom line at Newmont has improved. It delivered record free cash flows in 2020 and hiked its dividend twice. It now yields over 2%. And I expect this to continue into 2021.

Freeport-McMoRan (NYSE: FCX) — Freeport is the seventh-largest weighting in the S&P Materials Index. It is one of the world’s largest mining companies, focusing on large, long-lived assets with significant reserves of copper, gold, and molybdenum. It is also growing revenues and expects to reinstate its dividend, which it suspended in 2020, in 2021. That will bring in a new class of buyers.
 

Call it like you see it, 

Nick Hodge
Editor, Daily Profit Cycle

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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