Finding the right stocks to invest in can be difficult for a new trader, especially with so many different types of stocks on the market. Fortunately for you, there are numerous references available online that will assist you in selecting the best stocks to trade in. In this article, we will look at copper-related stocks that have been performing well recently.
First, what are copper stocks, and why do experts believe they will have a positive price trend in the coming year? Copper-related stocks are those issued by companies involved in the copper industry, primarily those that mine and refine the commodity; these include construction, electronics manufacturing, transportation, and others.
Experts believe the industry will remain bullish as electrification and electric vehicles gain popularity, increasing the world’s appetite for the base metal.
Now, let us go over the top 5 copper-related stocks that investors should consider investing in.
5 Copper Stocks Worth to Invest in Malaysia
1. BHP Group
Source : Facebook
The BHP Group is the largest mining company in the world, producing copper, gold, iron ore, and energy coal. The company is well-known for its respectable dividend payout as well as its 4-percentage-point long-term earnings growth rate. BHP’s most recent dividend payout for the full financial year of 2023 amounted to $1.70 with an annual yield of 5.74%. This brings the company’s total returns to shareholders to more than $8.6 billion for the year, with a payout ratio of 64%.
The biggest near-term growth opportunity for BHP is productivity improvements, or efficiencies from existing assets. As the world’s largest copper mineral resource holder, and the second-largest for nickel sulphide resources BHP shares are available on the Australian Stock Exchange (ASX: BHP), London Stock Exchange (LON: BHP), as well as South Africa, and the NYSE.
2. Southern Copper Corporation
Source : Facebook
Another company to keep an eye on is Southern Copper Corporation. Southern Copper is a Mexican copper producer that also mines other metals such as molybdenum, zinc, and silver. The company is currently the world’s second largest copper producer and holds 13% off the world’s copper reserves, with a quarterly cash dividend of 90c per share.
3. Freeport-McMoRan Inc.
Source : Facebook
Another company with which to trade copper stocks is Freeport-McMoran Inc. This company is a leading international mining company with significant copper and gold reserves, and it is known as one of the fastest growing copper stocks.
Freeport McMoran, based in Indonesia, paid a cash dividend of 0.60c per share in July 2024.
4. Kaz Minerals plc
Source : Facebook
Kaz Minerals, like the rest of the companies on this list, is primarily engaged in mining and processing copper and other metals, with operations in Kazakhstan. The company’s constant focus on implementing modern technology to develop its processes has helped to reduce production costs, ultimately increasing profit and production.
You can buy Kaz Minerals shares on the London Stock Exchange, under ticker LON: KAZ.
5. Coeur Mining, Inc.
Source : Facebook
Last but not least is Coeur Mining, a Chicago-based gold, silver, and zinc producer. The company is known for its emphasis on resource expansion and new discoveries, and it is expected to grow by 127% year on year.
Over the past 12 months, Coeur Mining shares (NYSE: CDE) have gained 106%.
Special Mention – Bonus Names
If you are still curious about other copper related stocks, we have another couple of names you might want to consider on your shortlist.
Rio Tinto (ASX: RIO) – ASX Listed, as well as London Listed Rio Tinto (both under ticker RIO) is the second largest miner in the world, and worthy of consideration on any list. Whilst renowned as a major iron ore producer, Rio also holds a 55% stake one of the world’s largest undeveloped copper projects based in Arizona.
Ta Win Holdings Berhad – Listed on Bursa Malaysia (7097.KL), Ta Win is a Malaysian holding group that owns and operates copper wire and cable manufacturing plants. With a much smaller market cap, and a slightly different angle on copper, this is a locally listed firm that could be one to keep an eye on.
How to Invest in Copper Stocks
So, now that we’ve gone over the top five copper-related stocks in Malaysia, let’s go over how to get started investing in them.
1. Step 1 : Find a Broker
The first possible step for a new investor to take before beginning to invest in copper stocks is to select the right broker to trade with. Once you’ve decided on a broker, you can open a trading and CDS account with them right away.
2. Decide Types of Trade to Invest
Whether you want to trade CFDs, a single stock, or a copper ETF, make sure it fits your financial ability. You should also invest in copper-related stocks that are appropriate for your trading style and knowledge.
CFDs are leveraged, which means you can open a larger position with a small initial deposit (called margin). However, keep in mind that with leverage, your potential profit or loss is calculated based on the total size of your position and can significantly outweigh your margin amount.
If you want a broader exposure to copper, you should invest in an ETF. This gives you access to a basket of different copper industry company shares that you haven’t actively chosen.
3. Open Position and Monitor Trade
Once you’ve made your decision, it’s time to open a position with your chosen broker and closely monitor your trade to ensure risks are well mitigated.
How to Choose the Best Copper Stocks to Invest In Malaysia
1. Find The Best Value Stocks
The best value stocks have the lowest 12-month trailing price-to-earnings (P/E) ratio. A low P/E ratio indicates that you are paying less for each profit generated. As a result, if you want to make more money, it is best to look for copper-related stocks with a low P/E ratio.
2. Consider The Fastest Growing Stocks
The fastest growing stocks are those that are expected to outperform the market in terms of sales and earnings growth. These stocks are usually traded at a high P/E ratio.
3. Keep an Eye on Copper Stocks with the Best Momentum
The best momentum copper related stocks, on the other hand, have the highest total return over a short period of time. In most cases, these stocks can also crash unexpectedly, posing serious risks.
Benefits of Investing in Copper Stocks
Gain Exposure – Ideally, many investors decided to trade in the best copper stocks and ETFs as a way to gain market exposure without owning the commodity. This will allow investors to gain as much experience as possible in the stock market while also controlling the amount of financial loss.
Stable Demand – Copper as a commodity is in high demand, and copper stocks benefit from that demand, assuming they are operationally successful. The metal is widely used in processes ranging from electricity generation to infrastructure construction. Because copper has so many uses, its price is regarded as a reliable indicator of macroeconomic health.
Growing Usage – Furthermore, once the project’s copper reserves are depleted, copper is expected to have a very bright future. Aside from that, there is currently a surge in the production of electric vehicles, which is expected to grow exponentially in the future and drive the copper price even higher.
Invest in Top Copper Stocks Malaysia Today
Those looking to increase their passive income can benefit from stock market investing. Trading, on the other hand, comes at a price. Before you enter the stock market, make sure you have sufficient knowledge. Choosing the right broker can also be beneficial. Finally, before you begin investing, you must ensure that you are only considering the best commodity with the highest return.
In this article, we have assisted you in providing a brief reading on copper-related stocks, the metal that has gained a lot of traction and is performing very well this year. We hope it has given you a sense of what’s important when it comes to buying and selling stocks.
