3 blue chip resources shares to buy this month

I think recent share price weakness in the resources sector means BHP Billiton Limited (ASX:BHP) shares and two others are trading at very attractive prices…

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Recent rhetoric out of the White House has many investors concerned that a global trade war could occur in the near future.

This has understandably led to investors growing nervous about the prospects of it derailing global economic growth.

I am optimistic that there won't be a global trade war, which should allow the global economy to continue growing at a solid rate for the foreseeable future.

This would likely mean that demand for commodities grows, supporting or even improving current prices.

With that in mind, I think now could be an opportune time to consider gaining a little exposure to the resources sector if you don't already have it.

Three shares I would consider buying today are:

BHP Billiton Limited (ASX: BHP)

My first preference in the resources sector would have to be this mining giant. I think the quality of its assets and the relatively cheap price its shares trade at makes it a stand out pick. In addition to this, it is also a generous dividend payer and currently provides investors with a trailing fully franked 4.4% yield.

Mineral Resources Limited (ASX: MIN)

I think this diversified miner and mining services company is one to consider after its recent share price weakness. Although the future price of lithium is a matter of fierce debate, I remain confident that prices will remain high enough for miners like Mineral Resources to generate high levels of free cash flow.

Rio Tinto Limited (ASX: RIO)

After BHP Billiton, Rio Tinto would be my next favourite option in the resources sector. Especially after its exit from the coal industry last month. I thought that Rio Tinto commanded even better than expected prices for these assets, which should put it in a position to return money to shareholders in the form of a special dividend or share buybacks. Based on the last close price Rio Tinto's shares provide a trailing fully franked 5% yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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