Gold offers the “most reliable inflation hedge” among the various metals, said Bob Carlson, chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets. Carlson, who also leads the Retirement Watch investment newsletter, counseled that he recommends having a base inflation-hedge in gold through exchange-traded funds (ETFs). “An investment in a metals and mining company often will result in more than an investment in a metal, Carlson continued. The companies usually have debt that can be used as leverage to ramp up returns, he added.
“Investors who want to seek these leveraged gains should invest in a diversified mutual fund or ETF,” Carlson said. “Those who want an inflation hedge should choose a fund focused on gold mining companies. A good choice is iShares MSCI Global Gold Miners (RING).” For investors who want a broader portfolio that will benefit from both inflation and global growth, check out iShares MSCI Global Metals & Mining Producers (PICK), Carlson counseled. For investors who would consider a non-dividend-paying ETF, Carlson favors iShares Gold Trust (NYSE:IAU). It has shown quite a bit of volatility in the past year. BHP Group Ltd. (NYSE:BHP) is the biggest miner on the planet across many metrics. A metals stock that has been on a run in the past year with no signs of sliding is Nucor Corp. (NYSE:NUE), a Charlotte, North Carolina based producer of steel and related metals. Reliance Steel & Aluminum (NYSE:RS), a Los Angeles-based metal solutions provider and the biggest metals service center company in North America. BoA gave Reliance Steel a price target of $185 per and praised its cash return to shareholders, as well as support for the share price through buybacks. Plus, Reliance Steel has a track record of free cash flow generation. Fort Wayne, Indiana-based Steel Dynamics, Inc. (NASDAQ/GS: STLD) is one of the largest U.S. steel producers and metals recyclers in the United States.
Source: Dividend Investor
Related Articles:
7 Dividend-Paying Metals Investments to Purchase as Protection Against Inflation
Posted by D4L | Thursday, July 01, 2021 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We decided to go on a hunt for quality stocks that for one reason or another have been buried, and not just this year. We found three incred...
-
Buy and hold ... forever? It's a tall order, but a select few companies are potentially up to the task. You can build a wealth-compoundi...
-
Does the high interest rate environment we're living in have you feeling down? Here's something to remember that can help you turn t...
-
Essentially, we’re looking for more Apples – tech firms with a large market cap (at least $1-billion) and the financial means necessary to p...
-
Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-th...
-
High-quality dividend stocks are always worth loading up on. This is doubly true for companies that offer shareholders an attractive mix of ...
-
Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty ...
-
Some dividend-paying companies have seen their financials struggle over the years. These companies become vulnerable to dividend cuts which ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.