Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Glencore Stock Can Bring Growth And Dividends

By Investing.com (Tezcan Gecgil/Investing.com )Stock MarketsNov 13, 2020 10:24
uk.investing.com/analysis/glencore-stock-can-bring-growth-and-dividends-200449717
Glencore Stock Can Bring Growth And Dividends
By Investing.com (Tezcan Gecgil/Investing.com )   |  Nov 13, 2020 10:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

November has so far been a good month for investors in a number of stocks both in US and UK markets, including commodity trading and mining giant Glencore (LON:GLEN) (OTC:GLNCY). So far in the month, the shares are up over 20%.

Glencore Daily
Glencore Daily

Therefore we will take a closer look at whether GLEN shares deserve to be in long-term portfolios and introduce several other names that may pique investors' interests.

Glencore

Switzerland-headquartered FTSE 100 member, Glencore is regarded as a giant in the commodities sector. Its history goes to the 1970s and it employs around 160,000 worldwide in over 35 countries.

Glencore's 150 mining and metallurgical sites, as well as oil production assets, make up most of the operations.

Metals and minerals assets include copper, cobalt, nickel, zinc and lead, ferroalloys, aluminum, iron ore, gold and silver.

Thermal coal, crude oil, oil products and natural gas are among the energy products.

Glencore's marketing activities differentiate the group from producers. In other words, it physically sources commodities from other suppliers and sells to global customers.

Despite a strong month so far, year-to-date (YTD), GLEN stock is down about 21%. On Nov. 12, the stock closed at 188.58p ($4.88 for US-based stock).

Despite the decline in 2020, we must note that the shares have had a strong comeback since the lows hit in March.

The reason for this drop was mostly the pandemic, which meant a pause in some mining operations during various lockdowns. The company also incurred high storage costs for energy products.

In early August, the group released its half-year report. CEO Ivan Glasenberg said:

"we are pleased to announce an overall strong financial performance from our various businesses, reflecting the countercyclical earnings power from our large scale Marketing activities, combined with a cash generative industrial asset base, which quickly adapted to the changed environment."

Despite his optimism, net loss was $2.6 billion. A year ago, it reported a gain of $226 million. Management also canceled the interim-dividend as it wants to reduce its debt.

We believe GLEN stock offers an acceptable margin of safety for long-term investors. In other words, most of the bad news has already been factored into the price.

Forward P/E, P/S, and P/B ratios stand at 11.68, 0.19, and 0.92, respectively. Therefore, we'd look to buy the dips.

Bottom Line

Those investors who are not ready to commit capital into the commodity giant may also consider exchange-traded funds (ETFs) that also have Glencore as a holding. As most of these funds offer juicy dividend payments, they could appeal to passive income seekers, too.

Examples of such funds include:

  • FlexShares Morningstar Global Upstream Natural Resources Index Fund (NYSE:GUNR)—down 11.6% YTD; dividend yield 4.1%;
  • Global X Copper Miners ETF (NYSE:COPX)—up 16.8% YTD; dividend yield 0.5%;
  • iShares Global Materials ETF (NYSE:MXI)—up 9.67% YTD; dividend yield 3.8%;
  • iShares MSCI Global Metals & Mining Producers ETF (NYSE:PICK)—down 0.5% YTD; dividend yield 5.5%;
  • SPDR S&P Global Natural Resources ETF (NYSE:GNR)—down 12.3% YTD; dividend yield 3.6%;

These funds offer access to a range of both US and global companies, such as:

  • UK-based miner Anglo American (LON:AAL), (OTC:NGLOY)—down 5.2% YTD; dividend yield 2.7%;
  • Australia-headquartered global resources group BHP Billiton (ASX:BHP), (NYSE:BHP)—down 3.9% YTD; dividend yield 7.5%;
  • Canada-based First Quantum Minerals (OTC:FQVLF)—up 19.8% YTD; dividend yield 0.06%;
  • Phoenix, Arizona-headquartered Freeport-McMoRan (NYSE:FCX)— up 52.3% YTD;
  • Canada-based Ivanhoe Mines (OTC:IVPAF)—up 33.9% YTD;
  • UK-based industrial gases and engineering company Linde (NYSE:LIN) —up 20.4% YTD; dividend yield 1.5%;
  • Greenwood Village, Colorado-based miner Newmont (NYSE:NEM)—up 50.3% YTD; dividend yield 2.4%;
  • British-Australian mining and metals company Rio Tinto (NYSE:RIO)—up 5.3% YTD; dividend yield 8.6%;
  • India-based natural resources group Vedanta (NYSE:VEDL)—down 34.7% YTD; dividend yield 12.9%.
Glencore Stock Can Bring Growth And Dividends
 

Related Articles

Edison Group
DiscoverIE Group: Record Order Book Drives Upgrades By Edison Group - Dec 06, 2021

DiscoverIE Group PLC (LON:DSCV) reported strong organic growth in H122, up 8% compared to pre-COVID H120, and the underlying operating margin increased 0.8pp y-o-y to 10.3%. With...

Glencore Stock Can Bring Growth And Dividends

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Ram Narayana
Ram Narayana Nov 16, 2020 5:53
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good presentation
Arun Vakharia
Arun Vakharia Nov 15, 2020 13:44
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biggest bubble of the century
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email