The Global Mining Company Everyone Needs on Their Portfolio
Shah Gilani|January 18, 2022
Remember when the Fed claimed last year’s inflation was “transitory” and was “only temporary”? How J. Powell must feel now that every other news article is about how it has only gotten worse…
But I hope you aren’t bored of the topic yet. This inflation isn’t going anywhere and will be one of the top money movers of 2022. You’ll need to play the appreciation of hard assets to really profit off of it – and I have just the play in mind for you.
Click the video below to watch or read the transcript…
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Transcript:
Hey everybody. Shah Gilani here with “Take It to the Bank Tuesday,” where I recommend what you should do with $100 today.
What’s on the front burner for everybody? Inflation.
And if you want to play inflation, you’ll want to play the appreciation of hard assets – and what’s harder than the mining industry?
This company is one of the best – one of my favorites. It is the largest mining company in the world: BHP Group (NYSE: BHP).
This is a huge company – $140 billion+ market cap, huge revenues, we’re talking about $62 billion in the trailing 12 months.
Profit margins close to 18.5%. Just a very well run, huge, diversified mining company.
But not only do they mine everything from petroleum, oil and gas, zinc, iron ore, molybdenum, all of the stuff that everybody wants and needs, they mine it to the enth degree globally… they have mines all around the world.
It’s not just a mining company – it’s a logistics company, they have towing, they have freight, market, and they trade.
They trade everything that they mine. So they can make money on the trading side as well as on the mining side.
Profitability on the mining side is pretty set. Margins are pretty set. But on the trading side, they can make some big gains there.
I love BHP in here. It’s really trading around $66 and change. It was recently at $80, it’s going back to $80, it’s going to make new highs. I think it’s going to $100.
This is absolutely a stock you want to own for the long haul.
So for $100, it’s BHP all the way.
Oh, and it’s got a kicker.
BHP pays you to hold it.
The dividend yield on BHP is 9.33%. That’s the forward dividend yield.
So if you buy BHP, it pays you over 9% a year just to hold the stock. Alright, you’re not gonna get that kind of return anywhere else, especially on a dividend, on a 70% payout ratio – which is incredibly healthy for a giant company with huge cash flows, huge cash position. Yes, it’s got a lot of debt, but it’s got all the cash flow, lever-free cash flow to pay for it.
Love this company, I love playing it in the inflation space.
BHP Billiton for your $100. Buy it today, and take it to the bank.
Catch ya next week.
Thanks for watching,
Shah Gilani