5 Best Mining Stocks To Buy Now

2. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 56

On September 21, Freeport-McMoran Inc. (NYSE:FCX) declared a quarterly cash dividend of $0.15 per share of common stock. The dividend is payable on November 1 to stockholders of record at the close of business on October 14. As of October 10, the stock is offering a forward dividend yield of 2.07% and is trading at a PE multiple of 8.87. Freeport-McMoran Inc. (NYSE:FCX) is one of the best undervalued and dividend-paying mining stocks to buy now.

This July, Citi analyst Alexander Hacking raised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $29 from $28 and reiterated a Neutral rating on the shares. On October 5, Deutsche Bank analyst Abhi Agarwal revised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $30 from $35 and maintained a Hold rating on the shares.

At the close of Q2 2022, 56 hedge funds disclosed ownership of stakes in Freeport-McMoran Inc. (NYSE:FCX). The total value of these stakes amounted to $2.47 billion. As of June 30, Fisher Asset Management owns over 52 million shares of Freeport-McMoran Inc. (NYSE:FCX) and is the largest investor in the company. The investment covers 1.07% of Ken Fisher’s 13F portfolio.

Here is what Diamond Hill Capital had to say about Freeport-McMoRan Inc. (NYSE:FCX) in its second-quarter 2022 investor letter:

“In Q1, shares of copper-focused mining company Freeport-McMoRan Inc. (NYSE:FCX) were up meaningfully with other copper producers on rising demand for conductive metals and supply risk concerns from Russia. Despite reporting excellent Q1 results, management raised its cost guidance for the year, attributing it to rising fuel costs and inflation of other materials. Freeport’s share price declined in Q2 with other large miners as a result, and we think the response by market participants is overdone. The company continues to generate strong free cash flow, which it has returned to shareholders in the form of dividends and buybacks. We also remain attracted to Freeport’s unique exposure to high-quality copper producing mines, which is a key industrial input, particularly for green technologies, and we believe it’s a strong business oriented toward strengthening end markets.”