The copper sector involves companies engaged in the exploration, mining, refining, and distribution of copper. This versatile metal is crucial for construction, electronics, and renewable energy technologies. Copper stocks represent ownership in these companies traded on public exchanges. The sector’s performance often reflects global economic health and infrastructure development trends.
Investing in copper stocks can offer several potential benefits. Copper demand tends to increase during periods of economic growth and urbanization. The metal’s role in green technologies may drive long-term demand. Many copper companies pay dividends, appealing to income-focused investors. However, copper stocks also face challenges. The sector is cyclical, with prices influenced by global economic conditions. Mining operations can be capital-intensive and subject to environmental regulations. Geopolitical factors and trade tensions can impact copper prices and company profits.
When considering copper stocks, it’s important to evaluate a company’s reserve quality and production costs. Assess their geographic diversification and exposure to different end markets. Look at factors like debt levels and ability to weather price fluctuations. Consider the potential impact of new technologies on copper demand. Be aware of environmental, social, and governance (ESG) factors in the mining industry. If this still has you keen on potentially investing in the copper sector, then here are two copper stocks to watch in the stock market today.
Copper Stocks To Buy [Or Avoid] Right Now
- Southern Copper Corporation (NYSE: SCCO)
- Freeport-McMoRan Inc. (NYSE: FCX)
Southern Copper Corp. (SCCO Stock)
First up, Southern Copper Corporation (SCCO) is a major integrated copper producer with operations primarily in Mexico and Peru. They are involved in mining, smelting, and refining copper, as well as producing other minerals like molybdenum, zinc, and silver. Southern Copper is known for having some of the largest copper reserves in the industry.
Back in July, Southern Copper announced its Q2 2024 financial results. In detail, the company reported that its net sales increased by 35.5% to $3,118.3 million, driven by higher sales volumes and metal prices. Additionally, net income rose by 73.6% to $950.2 million. Also, copper production grew by 6.6% quarter-on-quarter. Southern Copper also announced a quarterly cash dividend of $0.60 per share and a stock dividend of 0.0056 shares per share of common stock.
So far this year, shares of SCCO stock have advanced by 43.15% year-to-date. That said, during Friday morning’s trading session, Southern Copper Corp. stock is red on the day so far by 1.01%, currently trading at $119.21 a share.
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Freeport-McMoRan (FCX Stock)
Next, Freeport-McMoRan Inc. (FCX) is one of the world’s largest publicly traded copper producers. They operate significant mines in North America, South America, and Indonesia. In addition to copper, Freeport-McMoRan also produces gold and molybdenum. The company engages in all stages of the mining process, from exploration and extraction to processing and marketing.
Just this week, Freeport-McMoRan announced its Board of Directors’ decision on quarterly dividends. The company declared a cash dividend of $0.15 per share on its common stock. This dividend consists of a base dividend of $0.075 and a variable dividend of $0.075 per share. The dividend will be payable on November 1, 2024, to shareholders of record as of October 15, 2024.
Year-to-date, shares of Freeport-McMoRan stock have increased by 22.29%. Meanwhile, during Friday morning’s trading session, FCX stock is trading lower on the day so far by 0.71%, currently trading at $51.54 a share.
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