5 Commodity Dividend Stocks With Over 4% Yield

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

Dividend Yield as of March 21: 11.91%

Number of Hedge Fund Holders: 25

Vale S.A. (NYSE:VALE) is one of the biggest iron ore producers in the world. The Brazilian miner offers a dividend yield of 11.91%. In February, the mining behemoth declared $3.5 billion in interim dividends to shareholders. As of March 22, shares of Vale S.A. (NYSE:VALE) jumped 42% in the past three months.

As global economic activity returns to pre-pandemic levels, Vale S.A. (NYSE:VALE) is one of the iron ore producers that has benefited from increased iron ore demand. In 2021, the company’s iron ore production grew 5.1% from 2020. Vale S.A.’s (NYSE:VALE) net income came in at $22.4 billion, an increase of 360% year over year. 

As of the end of December 2021, Fisher Asset Management holds the largest stake in Vale S.A. (NYSE:VALE) worth $434 million. Overall, 25 funds of the 924 elite funds tracked by Insider Monkey reported owning stakes in Vale S.A. (NYSE:VALE) at the end of the fourth quarter.

Miller Value Partners, in its Q3 2021 investor letter, mentioned Vale S.A. (NYSE:VALE) and discussed its stance on the firm. Here is what the fund said:

“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 peek at the 10 Best High Dividend Stocks to Buy Now and Michael Burry’s Warning On Inflation and His Top 6 Stock Picks.

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