IKN

Take physic, pomp

BHP and Rio Tinto will come out of the downturn better than the rest

Yesterday I was sent a research note on large cap resource stocks published by BofA/ML in April 2015. Flicking through it last night, this chart really caught my eye:
What with the travails of Glencore now well documented, the shape of the comparative EVs, plus the distinct lack of bad news coming out of Rio Tinto or BHP, got me thinking about which large-caps are going to get out of this mess first and fastest.

UPDATE: Reader ‘R’ writes in with this:

Further to your post, a quick check on Yahoo finance…
BHP pays $2.48/sh in dividends for a 7.3% yieldand
RIO pays $2.14/sh for a 6.2% yield
Hard to argue where the ‘smart’ money has gone to hide.

Good observation.

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