5 Best Money-Making Stocks To Buy Now

In this article, we will look at the 5 best money-making stocks to buy now. If you want to explore similar stocks, you can read 11 Best Money-Making Stocks To Buy Now.

5. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 27

Wall Street is positive on Vale S.A. (NYSE:VALE). On September 12, RBC Capital analyst Tyler Broda raised his price target on Vale S.A. (NYSE:VALE) and upgraded the stock to Outperform from Sector Perform. This October, Deutsche Bank analyst Liam Fitzpatrick revised his price target on Vale S.A. (NYSE:VALE) to $19 from $20 and reiterated a Hold rating on the shares.

Vale S.A. (NYSE:VALE) is one of the best money-making stocks to buy now. The company has free cash flows of over R$11.72 billion and a trailing twelve-month ROE of 50.59%. The stock has pulled back and is giving investors an opportunity to rack up shares while it still trades at an attractive valuation. As of October 19, Vale S.A. (NYSE:VALE) is trading at PE multiple of 3x and is awarding shareholders with a forward dividend yield of 10.35%.

At the end of Q2 2022, 27 hedge funds were bullish on Vale S.A. (NYSE:VALE) and held stakes worth $1.78 billion in the company. As of June 30, Fisher Asset Management is the top shareholder in Vale S.A. (NYSE:VALE) and has stakes worth $324.5 million in the company.

Here is what GMO LLC had to say about Vale S.A. (NYSE:VALE) in its first-quarter 2022 investor letter:

“Let’s look at Vale (NYSE:VALE), the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. ⁴ What did the company do with all that cash? Last year, Vale paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”