The Motley Fool

BHP and these ASX resources shares have smashed the market in 2019

The resources sector has proven to be a very good place to invest once again in 2019.

Since the start of the year the S&P/ASX 200 Resources index has pushed an impressive 18.9% higher.

Key drivers of this strong rise have been the performances of the three shares listed below. Here’s why they are smashing the market in 2019:

The BHP Group Ltd (ASX: BHP) share price has provided a return of 15% since the start of the year, excluding dividends. If you add in the mining giant’s interim and special dividends this return stretches to over 21%. There have been a number of catalysts for this strong return, including a solid production performance, favourable commodity prices, and the company’s decision to return funds to shareholders via a share buyback and special dividend.

The Fortescue Metals Group Limited (ASX: FMG) share price has been a very strong performer in 2019 with a gain of 95% excluding dividends or a stunning 117% if you include them. Investors have been fighting to get hold of Fortescue’s shares due to a material rise in iron ore prices following supply issues in both Brazil and Australia. Both low grade and benchmark fines have hit multi-year highs this year, putting Fortescue in a position to deliver a bumper full year result in FY 2019. The good news for the company is that some analysts believe that iron ore prices can continue climbing higher in the near term.

The Rio Tinto Limited (ASX: RIO) share price has smashed the market with a return of 31% since the turn of the year excluding dividends. If you include its final dividend, this return increases to just under 39%. As with the others, this has been driven by favourable commodity prices, strong production, and its decision to return excess funds to shareholders.

Overall, I believe this demonstrates why having a little exposure to the resources sector can be a great thing for a portfolio.

Missed these gains? Then don't miss out on these shares that have been tipped for very big things.

These ASX shares have shot up 204% and even 954%, but we think they’re just getting started

The $700 billion “war on cash” is on… and even The New York Times is calling it “a goldmine of staggering proportions”…

That’s why The Motley Fool has just released a brand-new research report: “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.” Inside, you’ll find 2 expert-picked ASX shares poised to profit from this sweeping tech revolution.

Heck, stock #1 is already up 204% in just the last two years. While Stock #2 has climbed an eye-watering 954% since 2015 alone…

Yet we’re convinced the sheer biggest returns could be still ahead, with 10X or more potential profits still on the table. Simply click the link below now and we’ll show you how to snap up this timely (and potentially highly profitable) new research for FREE.

Click here to snap up your copy of “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.”

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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!