Why can these mining stocks go big in 2022?

4 min read | January 06, 2022 06:56 AM GMT | By Rishika Raina

Highlights

  • Investors should do a thorough research on the debt a mining company is carrying.
  • Investing in dividend stocks is a great way to earn passive income.
  • The UK’s FTSE100 index currently offers a dividend yield of around 4% a year.

 

While investing in stocks, one should consider a few key points, like the economic conditions, inflation, government stability, company’s performance, and others. In general, mining companies are a great bid as they have more money to invest in projects and mines when the economic conditions are favourable. Companies that have low production costs are always profitable and are the best to invest in as they don’t rely heavily on debt. Investors should do a thorough research on the debt a mining company is carrying and should then decide how much to invest. 

Investing in these mining stocks is a great way to earn passive income as they give decent dividends. Despite dividend payments not appearing to be very substantial in the short run, they can possibly make up for a sizeable amount of the total returns from your stock market investments in the long run.

The UK’s FTSE100 index currently offers a dividend yield of around 4% a year. However, some constituents of the index offer a much greater dividend yield, and thus a higher passive income.

Here are 4 FTSE100-listed mining stocks that are currently offering a dividend yield higher than 7% a year. These stocks are worth buying for the long run and may potentially go big in 2022.

 

RELATED READ: Top companies that are set to grow dividends in 2022. Buy alert?

mining stocks that can go big in 2022

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Evraz plc (LON: EVR)

Evraz plc is engaged in mining and steel manufacturing. It is listed on the main market of the London Stock Exchange since 2005 and is a constituent of the FTSE 100 index. The market cap of the company stood at £8,775.48 million and it has given a return of 23.88% to its shareholders in the last one year. It is offering a dividend yield of 12.7% a year as of 4 January 2022. Evraz plc’s shares closed trading at GBX 616.40 on 5 January 2022.

BHP Group PLC (LON: BHP)

BHP Group PLC is a globally operating natural resources firm which produces and processes copper, iron ore, and metallurgical coal. It is listed on the main market of the London Stock Exchange since 1997 and is a constituent of the FTSE 100 index. The market cap of the company stood at £46,455.02 million and it has given a return of 10.07% to its shareholders in the last one year. It is offering a dividend yield of 10.0% a year as of 4 January 2022. BHP Group PLC’s shares closed trading at GBX 2,267.00 on 5 January 2022.

RELATED READ: Anglo American (AAL): Is it the right time to buy this mining share?

Rio Tinto plc (LON: RIO)

Anglo-Australian company, Rio Tinto plc is listed on the main market of the London Stock Exchange since 1973 and is a constituent of the FTSE 100 index. The market cap of the company stood at £61,058.77 million and it has given a negative return of -13.89% to its shareholders in the last one year. It is offering a dividend yield of 10.1% a year as of 4 January 2022. Rio Tinto plc’s shares closed trading at GBX 5,035.00 on 5 January 2022 

Polymetal International plc (LON: POLY)

Anglo-Russian company Polymetal International plc is engaged in the mining of precious metals and is listed on the main market of the London Stock Exchange since 2011 and is a constituent of the FTSE 100 index. The market cap of the company stood at £6,211.61 million and it has given a negative return of -31.51% to its shareholders in the last one year. It is offering a dividend yield of 7.7% a year as of 4 January 2022. Polymetal International plc’s shares closed trading at GBX 1,249.00 on 5 January 2022.


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