The copper sector is integral to the global economy, serving as a barometer for industrial growth due to copper’s widespread use in construction, electronics, and transportation. Copper stocks represent companies involved in copper mining and production, which can be volatile but often reflect broader economic trends. As infrastructure and technology sectors grow, the demand for copper typically increases, potentially boosting the performance of copper stocks.
Investing in copper stocks offers the advantage of exposure to a commodity essential for modern technology and renewable energy, especially with the growing emphasis on electric vehicles and sustainable energy solutions. Copper’s importance in various industries may provide long-term growth opportunities for investors. However, the sector is not without its risks. Prices for copper can be highly volatile, influenced by changes in global economic conditions, geopolitical events, and advancements in recycling technology which may affect supply and demand dynamics.
The high cost of mining and strict environmental regulations also pose challenges and financial risk to copper companies, which can impact stock performance. Nonetheless, for investors looking to add commodities to their portfolio, copper stocks offer a potential way to invest in a physical good with enduring demand. Considering all of this, here are two copper stocks for your watchlist in the stock market today.
Copper Stocks To Watch In The Stock Market Now
Freeport-McMoRan (FCX Stock)
Kicking this off, Freeport-McMoRan Inc. (FCX) is an international mining company. The company specializes in the mining of copper, gold, and molybdenum. Freeport-McMoRan operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. The company’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits.
Last month, Freeport McMoRan announced that its Board of Directors declared quarterly cash dividends of $0.15 per share on its common stock. In detail, these dividends comprise a base of $0.075 and a variable dividend also of $0.075. With that, the dividend will be payable on May 1, 2024, to shareholders of record as of April 15, 2024.
In 2024, shares of FCX stock have gained by 21.00% YTD. While, during Friday morning’s trading session, Freeport McMoRan stock opened green by 1.54%, trading at $50.93 a share.
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Rio Tinto Plc (RIO Stock)
Second, Rio Tinto Plc (RIO) is a global mining group headquartered in London, United Kingdom. It is one of the world’s largest metals and mining corporations. With a primary focus on the extraction of minerals such as iron ore, copper, diamonds, gold, and uranium. The company operates assets located in Australia, North America, Europe, and Asia.
Earlier this month, Rio Tinto announced its first-quarter production results for 2024. The company reported that mined copper production was up 7% compared to the first quarter of the previous year, totaling 156 thousand tonnes. This increase was attributed to higher grades and throughput at several key mines, including Escondida and Oyu Tolgoi. Overall, the report highlighted Rio Tinto’s continued focus on growing its presence in the copper market amidst global demand.
Year-to-date, RIO stock has dropped by 9.70% so far. While, on Friday morning, Rio Tinto’s stock opened modestly higher by 0.78%, trading at $67.20 a share.
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