I believe that having a little bit of exposure to the resources sector is a great way of maintaining a diverse portfolio.
But with so many shares for investors to choose from, I thought I would have a look at a few popular choices to see if there are investment opportunities. They are as follows:
BHP Billiton Limited (ASX: BHP)
Although the shares of this mining giant have performed reasonably better than the market this year, I don't think it is too late to consider an investment. Petroleum and iron ore are the two major contributors to BHP's EBITDA. While the outlook for iron ore is a little mixed, petroleum is looking far better. If oil prices remain close to current levels or improve further then I expect BHP will be in a position to deliver a strong profit result and consider increasing its dividend.
Fortescue Metals Group Limited (ASX: FMG)
This leading iron ore producer's shares are trading close to a 52-week low following recent declines in the iron ore price. While I am not convinced the iron ore price has found its bottom, I still see a lot of value in Fortescue's share price and the current level. This could make it worth considering today in my opinion.
Santos Ltd (ASX: STO)
As I mentioned above, the outlook for oil has improved drastically over the last few months and led to a solid rise in prices. I believe this puts Santos in a great position to profit over the coming years, especially given how the company has managed to reduce costs and become far more profitable. Its shares may be up 34% in the last three months, but I don't think it is too late to jump in.
