Which Mining Companies Can Withstand the Plummeting Iron Ore Prices?

China's internal infrastructure growth has slowed, causing the demand for iron ore to dissipate. In recent years, miners spent billions of dollars on projects that are no longer needed. Now there's an oversupply of iron ore. What does this mean for the mining companies?

In this episode of The Motley Fool's Where the Money Is, Motley Fool analysts Joel South and Taylor Muckerman discuss how mining companies are going to have to tighten their iron grips.

While smaller companies don't have the scale to drop prices, they will suffer until iron ore consumption picks up. Companies that produce at lower cost levels and have solid balance sheets -- BHP Billiton and Rio Tinto , for example -- will be better protected from the current distress in the materials market. 

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


The article Which Mining Companies Can Withstand the Plummeting Iron Ore Prices? originally appeared on Fool.com.

Joel South, Taylor Muckerman, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story