MENU

3 blue chip resources shares to buy this month

Credit: iStock

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.

Here are three more top shares that I think will benefit from a strong global economy.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.