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
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
This article comes from a recent Preferred Share Update on The REIT Forum. Be advised that share prices are constantly changing, so it's...
-
But aside from its track record as a Dividend Aristocrat with 27 consecutive years of payout hikes under its belt, there's another reaso...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
This is a clear recipe for investors to follow, and will lead us quite naturally to two recent stock recommendations from Morgan Stanley’s a...
-
Dividend Kings, stocks with at least 50 consecutive years of dividend growth, are favorites of many income investors. High-dividend yields c...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.