Dividend Plays: Metals And Mining

Includes: BHP, SCCO, WLB
by: Matt Schilling

Metals and Mining stocks have always been seen as an attractive investment. The small-cap companies trade on the results of a recent find or expansion of an exploratory dig site. The large-cap companies trade on continued growth and dividend distributions, as well as news of larger finds or acquisitions. Within the Metals and Mining sector three of these companies standout as not only great growth plays, but excellent dividend plays as well.

Oxford Resource Partners NYSE: (OXF) - OXF is currently hovering near its 52-week low, even though it continues to pay a very attractive dividend. The stock currently yields 23.90%, which equates to an annual dividend of $1.75/share. The company operates 21 active mines and has a presence in Illinois, Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia. Even though recent results were very weak, the company continues to show promise. Revenue for the full year was up 12% to just over $400 million.

BHP Billiton NYSE: (NYSE:BHP) - BHP is one of the largest companies in the metals and mining sector. Based in Melbourne, Australia, this mining behemoth is valued at almost $200 billion. As of the close of trading on March 20th the company currently yields 2.9%, and pays an annual dividend of $2.20/share. Investors should keep an eye out for a buying opportunity in the short term as prices for gold, silver and copper have dropped and economic woes have struck in Western Europe and parts of China.

Southern Copper Corporation NASDAQ: (NYSE:SCCO) - Investors should pay very close attention to the price of copper as SCCO moves hand in hand with copper trading. Copper posted one of its worst days in the last month on March 20th, and in the coming weeks it may be a very bumpy ride. However, that doesn't mean investors should shy away from the stock. The drop in commodities could present a buying opportunity if the stock continues to fall. SCCO currently yields 2.4% and pays about $0.76/share annually. That being said investors also received shares on top of the cash distribution that took place February 13.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.