Digging For Dividends Pt. 2: Southern Copper Corporation

Over the past few weeks, I've been looking into the possibility of investing in precious and non-precious metal stocks and/or exchange-traded products in anticipation of a possible upsurge in commodity prices at some point in the medium- to long-term. This article will take a look at one of the important industrial metals, as well as a company that has some of the lowest-cost deposits of this metal.
Copper is the 3rd most widely-used metal after iron and aluminum. With its high electrical conductivity, malleability, and ductility, it is ideal for a wide variety of applications, of which the most common are electrical wiring, plumbing, machinery parts, and as the basis for a number of commonly-used alloys, including bronze and brass.
As a tradeable commodity, copper has fluctuated dramatically in value, as the chart below illustrates. While prices have rebounded significantly from their 2015-2016 lows, they are still significantly below their post-financial crisis highs. Should the pace of economic growth in the global economy - especially the resource-hungry emerging markets - accelerate, we could see a return to these levels in the not-too-distant future.

Source: Infomine.com
On the other hand, investing directly in a commodity such as copper can be a dicey proposition. Excluding the dangers inherent in the use of leveraged commodity futures, most direct investments in copper or copper proxies such a copper-linked exchange-traded note do not pay investors... Read more

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