3 Top Dividend Stocks in Commodities
Commodity investing isn't for the faint of heart, but one smart way to offset the volatility associated with it is by getting into that arena via dividend-paying stocks. You might be surprised to hear that despite the unpredictable nature of their businesses, a number of commodity stocks boast strong dividend track records, and offer good yields today.
With key commodity prices bottoming, now is an excellent time to invest in top companies such as metals and mining giant Rio Tinto (NYSE: RIO), agricultural titan Archer Daniel Midlands (NYSE: ADM), and oil and gas heavyweight ExxonMobil (NYSE: XOM). Read on to know what makes their stocks such compelling commodity plays today.
With its yield hovering around 5.7%, Rio Tinto is among the top dividend stocks in commodities today. What is important to recognize is that the stock price has also climbed almost 25% year to date, meaning that growing dividends rather than declining share prices are driving its yield. At the heart of this growth is Rio's commitment to return 40% to 60% of its underlying earnings to shareholders in the long run, and its practice of topping that off with extra dividends during boom periods. During the first half of 2017, Rio returned $2 billion to shareholders in interim dividends as its underlying earnings jumped 2.5 times year over year.
Source: Fool.com
Exxon Mobil Corp. Stock
With 34 Buy predictions and not a single Sell prediction Exxon Mobil Corp. is an absolute favorite of our community.
As a result the target price of 126 € shows a slightly positive potential of 15.6% compared to the current price of 109.0 € for Exxon Mobil Corp..
