Banco de Chile Stock: A Low-Beta Proxy For The Copper Commodity

Feb. 17, 2025 7:42 AM ETBanco de Chile (BCH) StockBCH6 Comments

Summary

  • Banco de Chile is a low-beta proxy for copper exposure, providing diversified exposure with reduced volatility compared to direct copper investments.
  • Banco de Chile pays a high dividend yield of over 6%, on top of the copper upside.
  • Banco de Chile is undervalued relative to North American banks but justifiably overvalued compared to Andean peers due to superior creditworthiness, profitability, and market recognition.
  • Looking for a helping hand in the market? Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. Learn More »

bank building in the centre of old town Punta Arenas

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Lately, I have been asked frequently by people about ways to express their bullish stance on the copper commodity. This is a timely question, given that China, which consumes nearly half of the world's copper, appears to have regained

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This article was written by

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Laurentian Research is a resource industry veteran with a Ph.D. in geoscience and decades of investment experience. He leads the investing group

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, with an aim of helping membes uncover undervalued opportunities in the energy and mining sectors with multi-bagger potential. He is also passionate about helping members find dividend growth opportunities from long-term growth industries. Members get weekly newsletters, proprietary in-depth analyses, trade alerts, model portfolios, private access to him, and a community of fellow investors to share investment ideas with.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in BCH over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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