In this article, we discuss the 4 coal stocks that pay dividends. If you want to read about some more coal stocks that pay dividends, go directly to 8 Coal Stocks that Pay Dividends.
4. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 19
Dividend Yield as of August 19: 12.25%
BHP Group (NYSE:BHP) is a diversified metals and mining firm. The firm has a stellar dividend history stretching back over thirteen years. The company has also grown the dividend payout in the past year. The sector median for consistent payouts in the sector is just two years, and thirteen years of payouts attests to the strength of the business model of BHP Group. On August 16, the firm announced a dividend of $1.75 per share, making a peak annual distribution of $3.25 per share.
On August 17, investment advisory Credit Suisse maintained a Neutral rating on BHP Group (NYSE:BHP) stock and raised the price target to GBP 2,300 from GBP 2,200. Analyst Danielle Chigumira issued the ratings update.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in BHP Group (NYSE:BHP), the same as in the preceding quarter worth $2.2 billion. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE:BHP), with 18 million shares worth more than $1 billion.
3. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 27
Dividend Yield as of August 19: 22.27%
Vale S.A. (NYSE:VALE) markets iron ore products. The firm posted earnings for the second quarter of 2022 on July 29, reporting earnings per share of $1.32, beating market estimates by $0.52. The revenue over the period was $11.6 billion, down more than 33% compared to the revenue over the same period last year and missing analyst expectations by $450 million. In February, the firm had declared an interim dividend of $0.73 per share. More than $3.5 billion were disbursed to shareholders through the payout.
On June 22, Morgan Stanley analyst Carlos De Alba maintained an Equal Weight rating on Vale S.A. (NYSE:VALE) stock and lowered the price target to $16 from $22, noting that decreasing iron ore prices would weigh on the shares of the firm in the near term.
At the end of the second quarter of 2022, 27 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Vale S.A. (NYSE:VALE), the same as in the preceding quarter worth $2.3 billion. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Vale S.A. (NYSE:VALE), with 22 million shares worth more than $324 million.
In its Q1 2022 investor letter, Grantham Mayo Van Otterloo & Co. LLC, an asset management firm, highlighted a few stocks and Vale S.A. (NYSE:VALE) was one of them. Here is what the fund said:
“Let’s look at Vale S.A. (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 S.A. (NYSE: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.”
2. Arch Resources, Inc. (NYSE:ARCH)
Number of Hedge Fund Holders: 44
Dividend Yield as of August 19: 0.63%
Arch Resources, Inc. (NYSE:ARCH) produces and sells coal. The firm is making inroads in the dividend space as it seeks to woo long-term investors. Two years of consistent payouts would bring the firm in line with the sector median in this regard. In late July, the company declared a dividend of $6 per share, which is equivalent to 50% of the second quarter discretionary cash flow, per Paul A. Lang, the CEO of the firm. In late April, the firm had declared a quarterly dividend of $0.25 per share, in line with previous.
On July 29, B. Riley analyst Lucas Pipes maintained a Buy rating on Arch Resources, Inc. (NYSE:ARCH) stock and lowered the price target to $221 from $234, noting that the recent weakness in the shares was a buying opportunity.
At the end of the second quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $723 million in Arch Resources, Inc. (NYSE:ARCH), compared to 45 in the previous quarter worth $1 billion.
In its Q2 2022 investor letter, Kingdom Capital Advisor, an asset management firm, highlighted a few stocks and Arch Resources, Inc. (NYSE:ARCH) was one of them. Here is what the fund said:
“Arch Resources, Inc. (NYSE:ARCH): When we began following Arch, we focused on their metallurgical coal segment and viewed their thermal coal segment as a source of potential upside. However, especially since Russia’s invasion of Ukraine, energy security has surged into focus and Arch’s thermal operation now faces higher spot prices than their met sales. Arch retired most of their convertible debt during Q2, another example of their strong commitment to delivering shareholder value. Estimates for Q2 suggest Arch Resources, Inc. (NYSE:ARCH) should earn over $20/share vs a $130 share price, and they remain committed to distributing half of their cash flow via dividends.”
1. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 46
Dividend Yield as of August 19: 1.12%
Teck Resources Limited (NYSE:TECK) is a diversified metals and mining firm. The company has one of the most impressive dividend profiles in the coal sector. In the past eleven years, it has consistently paid a dividend to shareholders. The sector median in this regard is just two years. This payout has registered growth in the past twelve months. On July 27, the firm declared a quarterly dividend of C$0.125 per share, in line with previous. The dividend is payable to shareholders by mid-September.
On August 16, investment advisory Stifel maintained a Buy rating on Teck Resources Limited (NYSE:TECK) stock and lowered the price target to C$59 from C$62. Analyst Alex Terentiew issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Soroban Capital Partners is a leading shareholder in Teck Resources Limited (NYSE:TECK) with 13 million shares worth more than $416 million. Overall, at the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Teck Resources Limited (NYSE:TECK), compared to 56 in the preceding quarter worth $2.6 billion.
You can also take a peek at Why These 10 Stocks Are Trending on Monday and 10 ETFs to Buy and Hold for the Next 10 Years.
