5 Commodities Stocks That Pay Dividends

1. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 25

Forward Dividend Yield as of March 18: 13.96%

Vale S.A. (NYSE:VALE) produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through two segments: Ferrous Minerals and Base Metals. This March, Deutsche Bank analyst Liam Fitzpatrick raised his price target on Vale S.A. (NYSE:VALE) to $20 from $19 and reiterated a Buy rating on the shares.

Vale S.A. (NYSE:VALE) was a part of 25 hedge fund portfolios by the end of the fourth quarter of 2021. The total stakes of these funds in the company equaled $1.71 billion. Of these 25 hedge funds, Fisher Asset Management is the majority shareholder in the company as of the close of Q4 2021. The fund’s stake in Vale S.A. (NYSE:VALE) is valued at $434.32 million, which makes up for 0.24% of Fisher Asset Management’s investment portfolio.

Miller Value Partners shared its insights on Vale S.A. (NYSE:VALE) in the firm’s Q3 2021 investor letter. Here’s what Miller Value had to say:

“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”

You can also take a look at 10 Best Commodity Stocks To Buy Now and 10 Best Precious Metals Stocks To Buy

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