Holding cyclical stocks through the best bit of the cycle
Last year, BHP and Rio both paid a gross yield of more than 13%, a figure that jumps to more than 20% once you include buybacks. Peter Gardner from Plato Investment Management gave Livewire readers a heads up on this opportunity in mid-2018, so we followed up on the theme when we had him in the studio recently.
He is still positive on the big miners and explains here why he thinks “investing in iron ore companies is actually fairly defensive at the moment”, and then goes on to discuss what yield he expects next year. While there’s no denying that resource stocks are cyclical, it sounds like we’re in the best bit of the cycle to own them.
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