4 High Yielding Resource Stocks to Buy: Cliffs Natural Resources Inc (CLF), Alliance Resource Partners, L.P. (ARLP)

Strong nitrogen partnership

Terra Nitrogen Company, L.P. (NYSE:TNH) with a market cap of around $4.5B is a strong dividend play on the list with a 6.8% yield. The marketer of nitrogen fertilizer used primarily to improve the yield and quality of crops saw significant gains from 2010 to early 2012. The stock currently trades near all-time highs and will continue to benefit from the growing demand for food in emerging markets.

The principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which are manufactured at the facility in Verdigris, Oklahoma.

1-Year Dividend Yield Chart

The below chart highlights the dividend yields of these four resource stocks. The yields have mostly remained steady over the last year as strong cash flows continue to lead to high yields.

ARLP Dividend Yield data by YCharts

Conclusion

Investors now have the unique opportunity to invest in quality resource stocks with solid dividend yields above 3%. Naturally the MLPs normally trade with less volatility due to the high yields, but all of the investment options provide solid yields depending on which commodity investors perceive has having a strong future.

The article 4 High Yielding Resource Stocks to Buy originally appeared on Fool.com and is written by Mark Holder.

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