FXPO, DEC, RIO, ANTO: Mining and energy stocks to watch for dividend

Highlights

• Dividends are often seen viable investment option as it offers decent returns.  
• The blue-chip index has outperformed its global peers the year due to a large constituent of mining and oil stocks.

The London’s blue-chip index, FTSE100 contains a lot of large, well-established companies that offers high average dividend yields to their shareholders that are hard to ignore.  

As the UK continue to grapple with rising inflation and cost-of-living crisis, the outlook for the UK dividend shares this year looks bright even after the setback of the pandemic and its aftermath.

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The blue-chip index has outperformed its global peers the year due to a large constituent of mining and oil stocks. The sharp rise in the commodity and energy prices due to pandemic, Russia-Ukraine war, inflation and supply chain crisis has pushed the blue-chip index higher.

Many companies in the top index have announced share buyback this year, which means there is spare cash available to offer its shareholders. Dividends are often viewed as a crucial element of an investment strategy, as it providers a regular stream of income.   

Dividend stocks more than just an investing option as it offers investors a viable option to invest in companies with with strong fundamentals. Investor should also look at the level of dividends and how they are funded.  

Let us take a look at four FTSE listed mining and oil companies that you may consider.

Ferrexpo Plc (LON: FXPO)

The Swiss-based commodity trading and mining group, Ferrexpo Plc’s market cap stands at £676.33 million as of 12 July. The shares of the company have depreciated by -75.02% over the last one year as of 12 July, with its YTD returns placed at -62.89%. The FTSE 250 listed company’s annual dividend yield stands at 15.9%, while its five-year average dividend yield stands at 5.9%. Ferrexpo Plc was trading at GBX 110.90, down by 3.48%, at 10:05 AM (GMT+1) on 12 July.

Diversified Energy Company Plc (LON: DEC)

The independent energy company, Diversified Energy Company Plc’s market cap stands at £952.23 million as of 12 July. The shares of the company have appreciated by 8.68% over the last one year as of 12 July, with its YTD returns placed at 7.84%. The FTSE 250 listed company’s annual dividend yield stands at 12.2%, while its five-year average dividend yield stands at 8.2%. Diversified Energy Company Plc was trading at GBX 112.60, up by 0.63%, at 10:15 AM (GMT+1) on 12 July. 

Rio Tinto Plc (LON: RIO)

The Anglo-American multinational metals and mining company, Rio Tinto Plc’s market cap stands at £60,423.61 million as of 12 July. The shares of the company have depreciated by -22.70% over the last one year as of 12 July, with its YTD returns placed at -3.49%. The FTSE 100 listed company’s annual dividend yield stands at 12.0%, while its five-year average dividend yield stands at 6.4%. Rio Tinto Plc was trading at GBX 4,711.50, down by 2.08%, at 10:15 AM (GMT+1) on 12 July.

Antofagasta Plc (LON: ANTO)

The UK-based copper mining and exploration company, Antofagasta Plc’s market cap stands at £10,519.09 million as of 12 July. The shares of the company have depreciated by -27.00% over the last one year as of 12 July, with its YTD returns placed at -21.33%. The FTSE 100 listed company’s annual dividend yield stands at 10.0%, while its five-year average dividend yield stands at 3.4%. Antofagasta Plc was trading at GBX 1,053.00, down by 1.31%, at 10:15 AM (GMT+1) on 12 July.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.