Materials and metals companies that pay investors.
When looking for dividend-paying stocks that deliver reliable paydays, many investors look to consumer products companies that they recognize for the expected stability in almost any economy. However, income-oriented investors shouldn't overlook the big potential in materials stocks that mine for the raw products that go into so much of what the global economy needs – from the iron in skyscrapers to the gold in jewelry to the copper in wires and electronics. If you're looking beyond traditional staples stocks for income, then consider these seven miners with significant dividends as part of your portfolio.
Next:Southern Copper Corp. (ticker: SCCO) Credit
(Getty Images)
Southern Copper Corp. (ticker: SCCO)
As you can probably guess, Southern Copper is one of the largest dedicated copper miners. The company also produces zinc, lead, silver and even gold as byproducts of its massive mining operations. After all, there's no reason to overlook other potential minerals if you're digging that many holes in the ground. The $31 billion miner has exploration operations in Peru, Mexico, Argentina and Chile that are constantly bringing a steady flow of valuable metals to market. And as a result, SCCO offers a steady and reliable dividend.
Advertisement
Current yield: 4%
Next:
Materials and metals companies that pay investors.
When looking for dividend-paying stocks that deliver reliable paydays, many investors look to consumer products companies that they recognize for the expected stability in almost any economy. However, income-oriented investors shouldn't overlook the big potential in materials stocks that mine for the raw products that go into so much of what the global economy needs – from the iron in skyscrapers to the gold in jewelry to the copper in wires and electronics. If you're looking beyond traditional staples stocks for income, then consider these seven miners with significant dividends as part of your portfolio.
Southern Copper Corp. (ticker: SCCO)
As you can probably guess, Southern Copper is one of the largest dedicated copper miners. The company also produces zinc, lead, silver and even gold as byproducts of its massive mining operations. After all, there's no reason to overlook other potential minerals if you're digging that many holes in the ground. The $31 billion miner has exploration operations in Peru, Mexico, Argentina and Chile that are constantly bringing a steady flow of valuable metals to market. And as a result, SCCO offers a steady and reliable dividend.
Current yield: 4%
BHP Group (BBL)
Even bigger is BBL, a stock recently highlighted as one of the best megacap dividend stocks to buy. At $200 billion in market value, it is the biggest publicly traded mining stock – and among one of the largest corporations across any sector. That reach and stability should be a great draw for income-oriented investors looking for consistent dividend payers. And with a diversity of minerals in its mining portfolio, from base metals like copper and zinc to more valuable metals including silver and uranium, BHP Group is sure to find customers across the global economy in any market environment.
Current yield: 4.3%
Vale (VALE)
Brazil-based mining conglomerate Vale is another big and stable player. Vale is a major player in ferrous minerals including iron ore as well as coal. The company also dabbles in other metals such as nickel and gold as by-products of extracting materials from its mines. The company's base of operations in Rio de Janeiro allows Vale to enter into strategic relationships with many Latin American manufacturers and industrial corporations, giving it a key foothold in many high-potential emerging markets. That allows for important sales that support generous dividends. Just be aware these payments can fluctuate quarter to quarter and aren't fixed like U.S.-based blue-chip stocks.

Current yield: 4.1%
Vedanta Ltd. (VEDL)
Vedanta is a $10 billion miner based in India, with diverse operations that extract zinc, lead, silver, iron ore, copper and aluminum. It also produces thermal coal, which it actually deploys in its own power plants to provide electricity to businesses and residential customers in India. As an emerging market investment with a bit more risk, the dividends aren't quite as consistent at VEDL. The company typically pays once in the spring and once in the fall at rates that can fluctuate significantly. However, based on the last two payouts, the annual yield on this stock is approaching double digits, so it is certainly worth a look by more aggressive dividend investors.
Current yield: 9.8%
Nexa Resources (NEXA)
Though headquartered in laissez faire Luxembourg, Nexa owns and operates five mines across the Central Andes of Peru and in Brazil. There, Nexa is focused mainly on zinc extraction, though it also produces copper, lead, silver and gold as byproducts from its mining. A relative newcomer to the dividend scene, there's only two years of history for payments. And furthermore, the distributions are annual – not quarterly – so you'll have to do some waiting between paydays. But as many dividend investors think in terms of years not months, the current yield north of 4% may be worth waiting for.
Current yield: 4.2%
Compass Minerals International (CMP)
Not all miners take familiar metals like copper or gold out of the ground to make a buck. Case in point is Compass, which is as much a chemicals company as a miner as it extracts rock salt and magnesium chloride. The products are used in various ways, including plant fertilizers and the road salt you may see on your local highway in the winter. Salts aren't a high-margin business, but they do enjoy reliable demand from corporations and local governments that need these products no matter the economic environment. That lends stability to CMP stock and reliability to its dividend to shareholders.
Current yield: 5.3%
Ciner Resources (CINR)
Relatively unknown miner Ciner Resources is only $500 million in market capitalization but has consistently paid a quarterly dividend of more than 50 cents a share for several years. And despite a massive yield, those dividends remain comfortable under its projected earnings per share and thus don't appear at any risk of drying up. Another unconventional minerals company, Ciner is focused on lesser known raw materials such as trona ore and soda ash. These materials are used in glass products, detergents and other chemicals and industrial products. It may not be as glamorous as digging for gold, but income investors who receive the paydays are pleased with CINR stock nevertheless.
Current yield: 8.9%
Smart materials stocks to buy for the dividends.
Southern Copper Corp. (SCCO)BHP Group (BBL)Vale (VALE)Vedanta Ltd. (VEDL)Nexa Resources (NEXA)Compass Minerals International (CMP)Ciner Resources (CINR)1 of 10
Jeff Reeves, Contributor
A veteran journalist with extensive capital markets experience, Jeff Reeves began writing for ... Read more
The Most Important Ages for Retirement Planning
ad content by FidelityInvesting for Retirement: How to Design A Plan that Anticipates the UnexpectedRetirement
The Most Important Ages for Retirement Planning: Age 65
Retirement
The Most Important Ages for Retirement Planning: Age 70 ½