4. Sibanye Stillwater Limited (NYSE:SBSW)
Dividend Yield as of March 21: 7.38%
Number of Hedge Fund Holders: 10
With a yield of 7.38%, Sibanye Stillwater Limited (NYSE:SBSW) is one of the high-yielding dividend stocks from the mining sector. The South African mining company has a five-year dividend growth rate of 44.29%. In 2021, Sibanye Stillwater Limited (NYSE:SBSW) paid its shareholders a total of $1.23 billion in dividends and $575 million in share repurchases.
Given that Russia, one of the world’s largest mineral-producing countries, is in conflict with Ukraine, market analysts are optimistic about Sibanye Stillwater Limited’s (NYSE:SBSW) significant market share in the global precious metal and minerals sector. On March 10, Deutsche Bank analyst Liam Fitzpatrick increased his price target for Sibanye Stillwater Limited (NYSE:SBSW) to $21 from $18.50 and maintained his Buy rating on the shares. As of March 22, the mining stock gained 45% in the past three months.
Similarly, hedge funds increased their stake in Sibanye Stillwater Limited (NYSE:SBSW) during the fourth quarter, with 10 of the 924 funds tracked by Insider Monkey reported owning shares in the company in the period, up from 9 in the previous quarter.
In its Q3 2021 investor letter, Desert Lion Capital mentioned Sibanye Stillwater Limited (NYSE:SBSW) and discussed its stance on the firm. Here is what the fund said:
“Sibanye Stillwater is one of the largest PGM (platinum group metal) producers in the world with major operations in South Africa and the U.S. They also have gold mining operations in SA. There is significant upside optionality in their growing lithium, nickel, and uranium activities, which are not yet contributing to earnings and not recognized by the market in SSW’s price.
During the third quarter, the company reported record earnings for the interim period ended June 2021. TTM EPS was R12.03, placing the stock on a PE multiple of 4. Cash generation was excellent, and the company is effectively debt-free with surplus net cash. The management team continues to stay disciplined in their capital allocation, using cash profits to settle debt, repurchase 5% of the company’s shares at a discount, pay a healthy dividend (~11% annualized dividend yield), and expand their battery metals strategy with lithium and nickel acquisitions… (Click here to see the full text)
..Sibanye Stillwater is a well-managed, profitable business with excellent capital allocation discipline. I view it as a dividend-paying call option on the normalization of auto manufacturing, climate change initiatives, and inflation. The company’s lithium, nickel, and uranium activities also position them to participate in the continued drive towards “cleaner” energy, and so far, these options are not priced in at all.”
