If you’re looking to diversify your portfolio, then you might want to look at adding a little exposure to the resources sector.
But which shares could be good options? Two that could be worth considering are listed below. Here’s why they are highly rated:
BHP Group Ltd (ASX: BHP)
The Big Australian could be a top option ASX 200 mining share to look at. It is a world-leading resources company extracting and processing minerals and oil and gas. It employees a massive 80,000+ employees and contractors, primarily in Australia and the Americas.
Its operations cover a range of commodities, some of which are commanding very high prices at present. In light of this, the company has been tipped to deliver strong profits in the near term. It also has opportunities, particularly in oil, that could drive further growth in the future.
Another big positive with BHP is the strength of its balance sheet. This positions it perfectly to return surplus cash to shareholders through dividends and buybacks.
Analysts at Macquarie are very positive on BHP. They are forecasting a record second half result next month and a big final dividend. The broker currently has an outperform rating and $63.00 price target on BHP’s shares.
Mineral Resources Limited (ASX: MIN)
Another ASX 200 mining share to consider is Mineral Resources. It is a mining and mining services company with a world class portfolio of operations across lithium and iron ore.
Demand for these two commodities is very strong at the moment. As a result, they are commanding very high prices, which bodes well for Mineral Resources’ profits and dividends.
It is for this reason that Macquarie is also very positive on Mineral Resources. The broker currently has an outperform rating and $73.00 price target on its shares. And as with BHP, Macquarie is forecasting big dividends in the near term.