Mining companies like Cliffs Natural Resources (NYSE: CLF ) and its close peers have vastly underperformed the market, as measured by the S&P 500, over the past year. That being said, there are several reasons why one could offer a bullish thesis on Cliffs, especially if global growth decides to accelerate. The capital intensive nature of this industry virtually insures against new competitors cropping up organically, and Cliffs' peer-leading dividend pays investors to wait out cyclical downturns before the growth bug strikes. Take a look at the video below in which Motley Fool energy and materials analyst, Taylor Muckerman, goes into these topics in more detail.
For those seriously interested in CLF
Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has performed well, relative to many competitors, in a very cyclical industry because of several factors that are likely to remain advantageous for Cliffs' management. For details on these advantages and more, click here now to check out The Motley Fool's brand-new premium report on the company.