The mining and materials sector is one of the most cyclical and volatile industries on the TSX. This is primarily because it heavily depends on the global demand and supply of commodities, which could be affected by several factors such as industrial demand, economic growth, environmental regulations, and geopolitical risks.
Nonetheless, some mining and materials stocks listed on the Toronto Stock Exchange also offer attractive opportunities for investors who want to diversify their portfolio or benefit from emerging decarbonization and electrification trends. Considering that, it could be a good idea for long-term investors to include some quality mining stocks in their portfolios.
In this article, I’ll highlight two of the best dividend-paying TSX mining and materials stocks you can buy in February 2024 and hold for years to come.
Kinross Gold stock
Kinross Gold (TSX: K) is the first TSX mining and materials stock you can consider adding to your portfolio in February. This Toronto-headquartered gold miner currently has a market cap of $9.1 billion as its stock trades at $7.41 per share after rising by 15.4% in the last six months. At this market price, the stock has a 2.2% annualized dividend yield.
Shares of Kinross Gold outperformed the broader market by a big margin last year, rallying around 45%, due mainly to its strong financial growth trends. To give you an idea about that, its total revenue rose 27.7% YoY (year over year) to US$3.1 billion in the first three quarters of 2023 by remaining on track to meet its annual production guidance. In these nine months, the company’s adjusted earnings more than doubled to US$0.33 per share, also beating Street analysts’ expectations by a wide margin.
In the third quarter itself, Kinross Gold’s total gold equivalent production increased by 11% YoY to 585,449 ounces with the help of record quarterly production at its central western Mauritania-based Tasiast mine. As the company progresses in other development projects like Manh Choh, its production and financial growth trends are likely to improve in the future, which should help its share prices soar.
Lundin Mining
Lundin Mining (TSX: LUN) is another top TSX mining firm that you can consider investing in for the long term. This Canadian miner primarily focuses on the production of metals like copper, zinc, nickel, and gold from its diversified portfolio of mines in several countries, including Spain, Brazil, and the United States. The company currently has a market cap of $8.6 billion as its stock trades at $11.16 per share after rising 15.2% in the last year. LUN stock offers a 3.2% annualized dividend yield at the current market price.
On January 14, Lundin Mining announced the results of its 2023 production and gave strong guidance. Last year, consolidated copper production reached a record of over 314,798 tonnes, and copper-equivalent production exceeded 550,000 tonnes.
Lundin Mining’s latest guidance indicates a consistent production forecast with previous copper estimates and increased gold ranges in 2024. Overall, this guidance reflects the company’s continued focus on strategic planning in mine sequencing and grade profiles across its operations, which could speed up its financial growth in the long term.
