7 Dividend-Paying Metals Investments to Purchase as Protection Against Inflation

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:

- The Magnificent Marvelous Money Machine

- International Securities For A Diversified Income Portfolio
- Rising Dividends = Rising Returns

- 4 Higher-Yielding Consumer Stocks With A History of Rising Dividends

- The Most Dangerous Investment