Mining Stocks To Consider Buying

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Mining Stocks To Consider Buying

Two Mining Stocks To Consider Buying

Copper mining companies have also been doing really well over the last few years. The consumption of copper has risen due to EVs, electrification, grid expansion, and data center buildout

This demand has increased copper prices, which has also improved the profits of these mining companies. Right now, there are big names in copper mining. These are BHP Group and Freeport-McMoRan. These are the largest players in the copper mining industry.

Both of these stocks are up by 36% on a YTD basis. That's a lot more than the S&P 500's average return of 12%. Analysts think there are several reasons why you can consider buying these two mining stocks.

Copper Demand Remains High

Copper is used everywhere, and the demand is not going to evaporate all of a sudden. It also takes 10-15 years to develop a new copper mine. So, we can expect higher copper prices for the next several years. This high demand means a good thing for BHP Group and Freeport-McMoRan.

In Q2, Freeport-McMoRan produced 286 million pounds of copper. It also sold around 710 million pounds of copper. On the other hand, BHP is Australian-based, and it produced 2 million tons of copper.

BHP also has several copper mines in Chile. So, the overall position of BHP is also very solid in the copper mining industry.

The bottom line is that demand remains strong, and these companies are in a good position to fill some of that demand. This also means both BHP and Freeport-McMoRan can benefit from the higher prices. The improved profits are sure to have a positive impact on the Freeport-McMoRan and BHP share prices.

These Mining Stocks Pay Dividend

If we talk about dividends, BHP takes the lead with a dividend yield of 4%. The company has also raised its dividend yield in the last 2 years. On the other hand, the dividend yield of Freeport-McMoRan is 0.43%. However, the company has run share repurchase programs, which sent the share price higher.

So, that's yet another reason why you can consider buying Freeport-McMoRan and BHP shares. They are both big names in copper mining and can help you capitalize on rising copper prices.

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