#7 - Vale (NYSE:VALE)
Analysts believe that 2025 may be a strong year for commodities, including gold, copper, oil, and steel. The latter defines the case for Vale S.A. (NYSE: VALE). The company is a leading mining company specializing in extracting iron ore and iron ore pellets. Iron ore is a core component of steel, and it is likely to be in high demand no matter which candidate wins the White House.
Vale also mines copper and nickel which puts it in a strong position as demands for AI are spurring the need for power, much of which will come in the form of electricity. The company is in the middle of its Value-Based Management (VBM) initiative that is focusing on operational efficiency and cost reduction.
VALE stock is down over 30% in 2024, but analysts give the stock a consensus price target of $16.17. That’s an upside of over 50% from the current price. Plus, investors get a high-yield dividend that has a yield of 10.80%.
About Vale
Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.
Read More - Current Price
- $11.13
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $16.17 (45.3% Upside)
Dividend yields don't tell the entire story of what makes a stock a good investment. In fact, there are many stocks with dividend yields that look too good to be true. These stocks can be yield traps.
Stocks that are yield traps lure investors in with a tantalizing dividend yield. However, the fundamentals of the business make sustaining that dividend impossible. For example, they could be financing the dividend with debt, or they could have low or even negative cash flow. You also have to watch for signs of trouble in the company's underlying business. Taking a long position in these stocks could leave you underwater on the stock and with little or no dividend to speak of.
The stocks in this presentation are from companies that have solid balance sheets that support a high dividend yield. Investing in these stocks can bring an appealing mix of dividend yield, dividend growth, and stock price appreciation. That combination can keep your portfolio growing no matter what's going on in the equity markets.
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