Commodities are on sale. Everything that we need to survive, from grains and beans to iron and copper, are getting hit in the markets due to recession fears.
But something other investors seem to have forgotten is, despite the recession talk, these commodities are needs. We can’t live without them, meaning demand for them will not wane during a recession the same way it does with luxury goods.
So, companies with solid financials, in-demand products, and stocks that could double or triple within the next few years, like the stock I am recommending today, are now on sale. Think: 41% off a mining stock once worth close to $100 per share.
This is an opportunity we can’t pass up, so watch today’s video to learn how to take advantage of dipping prices, or scroll down to read the transcript.
07/06/2022 Take It to the Bank Transcript
Hey everybody! Shah Gilani coming to you with your Take It to the Bank Tuesday… on a Wednesday because we had a fabulous (I did, and I hope you did) 4th of July holiday. Cheers everybody! Happy Independence Day, America!
Now, for your $100… I’ve got a break on for you today.
Look, stuff is down. We know the market is down. Stuff is getting hit on recession talk, including things we need, like food.
Commodities, materials, metals… The miners are all getting hit on recession fears, but they are a buy. Maybe you think the market’s going to come down lower. That just means you buy some here and you buy some more lower. That’s what I would do. But right here, one in particular is an absolute must for you $100 today.
It’s Rio Tinto Group (RIO).
I’ve talked about this one before. It’s one of my favorite mining stocks (probably my favorite mining stock) for a number of reasons. This company is great. It’s trading at $56.56 right now – midday on Tuesday. That’s down from $95.97 earlier this year where it hit its highs. It’s down 41%.
That’s bargain-basement territory. Trading at $56.56, I really like it down here.
Rio has a tremendous revenue of $63.05 billion – that’s just the trailing 12-months. That’s phenomenal revenue.
Profit margins… Are you ready for this? They are north of 33%!
Now, these numbers are probably gonna come down a little bit, but the quarterly revenue growth (on a trailing 12-month basis) is 20%. Quarterly earnings growth (on a trailing 12-month basis), 36%. We’ve got growth here, people!
Again, I think it’s gonna come down because of the recession fears. Maybe things won’t start to slow down globally. I think they will, but at a 41% discount to where this stock was trading, where it should be trading, RIO is a buy all day long.
For you $100, buy Rio Tinto. And don’t worry about holding onto it, even if it goes lower. You’re going to get paid to hold it. Rio Tinto pays a fabulous dividend. The dividend yield currently on Rio Tinto (on a forward basis) is 13.25%.
You’re getting paid a yield of 13 and a quarter percent to sit on a stock that can rally 40-70%, or higher of the next couple of years. That’s a no-brainer for your $100 this week.
And this is the kind of stock you want to average down if it goes lower. For your next $100, if RIO gets down to some further support at $44, I would buy $100 more of RIO. This is a double, maybe even a triple in a couple of years.
So, Rio Tinto: buy it. Take it to the bank.
Catch you next week.