Are miners worth another look for yield?

ON UK INCOME

Investors should take another look at beaten-up mining stocks, according to Smith & Williamson's Tineke Frikkee.

Two of the cheapest industry groups, basic materials and oil and gas, are currently offering dividend yields above market average but these sectors have more volatile share prices and less predictable profits. Oil and gas performed poorly in August, but mining delivered a positive return in a falling market. Has the time come to re-assess mining with most UK equity income funds underweight the sector? Low multiples and attractive dividend yields are not enough. We want companies to create long-term value by self-financing profitable growth. We find mining companies more interesting th...