In this article, we will look at 5 commodities stocks that pay dividends. If you want to see how the commodities market has been performing so far, you can go to 10 Commodities Stocks That Pay Dividends.
5. Enviva Inc. (NYSE:EVA)
Number of Hedge Fund Holders: 5
Forward Dividend Yield as of March 18: 4.24%
Enviva Inc. (NYSE:EVA) is the world’s largest producer of industrial wood pellets, which are used as an energy source to generate heat and electricity. On March 7, 2022, RBC Capital analyst Elvira Scotto raised his price target on Enviva Inc. (NYSE:EVA) to $85 from $78 and maintained an Outperform rating on the shares.
On January 19, 2022, Enviva Inc. (NYSE:EVA) announced a stock offering of 4.3 million shares of common stock. The stock offering was priced a day after, on January 20, at $70 per share. The company granted underwriters an overallotment option to purchase an additional 645,000 shares.
On February 28, 2022, Enviva Inc. (NYSE:EVA) declared a quarterly cash dividend of $0.86 per share, payable by February 25 to shareholders of record on February 14. The stock’s forward yield as of March 18, 2022, is 4.24% and the stock has gained 54.81% over the past twelve months.
Enviva Inc. (NYSE:EVA) was a part of 5 hedge fund portfolios by the end of the fourth quarter of 2021. The total stakes of these funds were valued at roughly $423.05 million, up from $341.70 million in the previous quarter with 8 positions.
Jeff Ubben’s Inclusive Capital is the dominating shareholder in Enviva Inc. (NYSE:EVA) as of Q4 2021. The fund’s stakes in the company amounted to $402.37 million, which covers 41.17% of Inclusive Capital’s 13F portfolio.
4. LyondellBasell Industries NV (NYSE:LYB)
Number of Hedge Fund Holders: 35
Forward Dividend Yield as of March 18: 4.37%
This February, BMO Capital analyst John McNulty raised his price target on LyondellBasell Industries NV (NYSE:LYB) to $103 from $95 and maintained a Market Perform rating on the stock.
On February 25, 2022, LyondellBasell Industries NV (NYSE:LYB) declared a quarterly cash dividend of $1.13 per share. The dividend was payable on March 14, 2022, to shareholders of record on March 7, 2022.
As of March 18, 2022, LyondellBasell Industries NV (NYSE:LYB) has a forward yield of 4.37% and has gained 13.91% over the past six months. Eagle Capital Management is the majority stakeholder in the company as of the fourth quarter of 2021. The fund’s stakes in the company amounted to $281.68 million, which makes up for 0.84% of Eagle Capital’s 13F portfolio.
Investors are bullish on LyondellBasell Industries NV (NYSE:LYB). As of the fourth quarter of 2021, 35 hedge funds held stakes in the company, which were worth $778.62 million, up from $676.59 million in the previous quarter when 39 hedge funds held stakes in the company.
Miller Howard Investments, an investment management firm, mentioned LyondellBasell Industries NV (NYSE:LYB) in its third-quarter 2021 investor letter. Here’s what the firm had to say:
“We initiated a position in LyondellBasell (LYB). Chemical markets are currently robust given the combination of 2020 plant shutdowns and strongly recovering demand. Despite the tailwinds, Lyondell trades at a low valuation and yields just under 5%.”
3. Southern Copper Corporation (NYSE:SCCO)
Number of Hedge Fund Holders: 19
Forward Dividend Yield as of March 18: 5.40%
This February, Southern Copper Corporation (NYSE:SCCO) announced its earnings for the fiscal fourth quarter of 2021, in which the company beat on revenue by $39.64 million. Southern Copper Corporation (NYSE:SCCO) reported earnings per share of $1.08. The company’s revenue saw an upside of 20.12% year over year and went up from $2.35 billion to $2.82 billion.
As of March 18, 2022, Southern Copper Corporation (NYSE:SCCO) has gained 30.64% over the past six months and has a forward dividend yield of 5.40%.
By the end of the fourth quarter of 2021, 19 hedge funds held stakes in Southern Copper Corporation (NYSE:SCCO). The total value of these stakes exceeded $440.2 million. Of these, Ken Fisher-led Fisher Asset Management was the dominating shareholder, having stakes of $221,811,000 in the company. The investment covers 0.12% of the fund’s fourth-quarter 2021 investment portfolio.
On December 9, 2021, Southern Copper Corporation (NYSE:SCCO) was upgraded to Equal Weight from Underweight by Morgan Stanley analyst Carlos De Alba. The analyst reiterated his price target of $55 on the stock.
2. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 22
Forward Dividend Yield as of March 18: 10.90%
Rio Tinto Group (NYSE:RIO) in involved in the exploration, mining, and processing of mineral resources worldwide. On March 14, 2022, Rio Tinto Group (NYSE:RIO) announced its plans to acquire 49% of the issued and outstanding shares of Turquoise Hill (NYSE:TRQ) at Canadian $34 in cash per share. The all-cash transaction is bet at $2.7 billion.
This March, Jefferies analyst Christopher LaFemina raised his price target on Rio Tinto Group (NYSE:RIO) to $92 from $86 and reiterated a Hold rating on the shares.
As of March 11, 2022, Fisher Asset Management is the majority stakeholder in Rio Tinto Group (NYSE:RIO), having stakes amounting to $907.2 million. The investment covers 0.5% of the fund’s Q4 2021 investment portfolio.
Rio Tinto Group (NYSE:RIO) is gaining popularity among investor circles. At the close of the fourth quarter of 2021, Insider Monkey identified 22 hedge funds having stakes in Rio Tinto Group (NYSE:RIO) worth in excess of $1.83 billion. This is compared to 20 positions in the third quarter of 2021, with stakes worth $1.33 billion. It can be concluded from these numbers that the hedge fund sentiment around the stock is positive.
1. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Forward Dividend Yield as of March 18: 13.96%
Vale S.A. (NYSE:VALE) produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through two segments: Ferrous Minerals and Base Metals. This March, Deutsche Bank analyst Liam Fitzpatrick raised his price target on Vale S.A. (NYSE:VALE) to $20 from $19 and reiterated a Buy rating on the shares.
Vale S.A. (NYSE:VALE) was a part of 25 hedge fund portfolios by the end of the fourth quarter of 2021. The total stakes of these funds in the company equaled $1.71 billion. Of these 25 hedge funds, Fisher Asset Management is the majority shareholder in the company as of the close of Q4 2021. The fund’s stake in Vale S.A. (NYSE:VALE) is valued at $434.32 million, which makes up for 0.24% of Fisher Asset Management’s investment portfolio.
Miller Value Partners shared its insights on Vale S.A. (NYSE:VALE) in the firm’s Q3 2021 investor letter. Here’s what Miller Value had to say:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
You can also take a look at 10 Best Commodity Stocks To Buy Now and 10 Best Precious Metals Stocks To Buy
