4-Star Stocks Poised to Pop: Southern Copper
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, copper giant Southern Copper (NYS: SCCO) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Southern Copper's business and see what CAPS investors are saying about the stock right now.
Southern Copper facts
|Headquarters (Founded)||Phoenix (1952)|
|Market Cap||$26 billion|
|Trailing-12-Month Revenue||$6.65 billion|
|Management||CEO Oscar Rocha (since 2004)|
CFO Genaro Mercado (since 2008)
|Return on Equity (Average, Past 3 Years)||35.6%|
|Cash/Debt||$1.78 billion / $2.75 billion|
|Competitors||BHP Billiton (NYS: BHP) |
Freeport-McMoRan Copper & Gold (NYS: FCX)
Rio Tinto (NYS: RIO)
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this fall, floridaoranges tapped Southern Copper as a solid income opportunity: "You can buy it now, and even if it drops further, you have a stock that has very good earnings and pays a great dividend. Once this economic debacle gets moved to page 2, look for the metals to shine."
In fact, Southern Copper sports a particularly juicy dividend yield of 9.1%. That's much higher than that of competitors like BHP (2.9%), Freeport (2.5%), and Rio Tinto (2%).
CAPS member Dan22italy elaborates on the bull case:
High dividend, will be boost by the increase in copper price as the euro area problems are resolved and growth back on track. Stock recently impaired by problems at mine, change of mining legislation in Peru and outflow of investor capital ... due to risk off general sentiment. Stock may stay low in a negative macro environment but still pay a very good dividend.
What do you think about Southern Copper, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Freeport. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.