Are mining stocks a good investment?

Investors in mining stocks should be keenly aware of both the mining industry's cyclicality and its capital-intensive nature. The best mining companies have proven their ability to generate profits regardless of economic conditions. If you are comfortable with some volatility and dividends are a priority, adding high-quality mining stocks to your portfolio might be the right move.

What are the best mining stocks to invest in?

The best mining stocks to invest in are Barrick, BHP Group, and Rio Tinto. These mining giants have low-cost operations, focus on precious or industrial metals, and have strong balance sheets. That puts them in the best position to create long-term shareholder value.

What are the mining stocks with the highest dividends?

Mining stock dividend yields tend to be very volatile. They rise and fall with mining company share prices (which can be very volatile) and with dividend payments (which can vary from period to period for many mining companies). In early May 2026, the three highest dividend yields among U.S.-listed mining stocks were:Alliance Resource Partners (NASDAQ: ARLP): 9.6%Vale (NYSE: VALE): 6.4%Rio Tinto: 4%

Are mining stocks considered growth or value stocks?

Many investors would consider most mining stocks to be value stocks. Most mining companies operate mature businesses that generate lots of cash flow, which they use to expand their mining operations and return cash to shareholders through dividends and share repurchases. Given the sector's maturity and the volatility of metal prices, many mining companies trade at valuations below the market average.

Does Warren Buffett invest in mining?

Warren Buffett and the company he built, Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), don't typically invest in mining. Berkshire Hathaway bought over $550 million in shares of gold and copper miner Barrick (NYSE: B) in early 2020, though it sold its entire stake later that year.

What are the top five mining companies?

The top mining companies by market cap are:BHP GroupRio TintoChina Shenhua EnergySouthern Copper (NYSE: SCCO)Zijin Mining

Best Mining Stocks to Buy in 2026

Best Mining Stocks to Buy in 2026: Your Complete Guide

By Matthew DiLallo – Updated May 6, 2026 at 1:55 PM EST | Fact-checked by Frank Bass

Key Points

Invest in mining giants like Barrick, BHP, and Rio Tinto for low-cost operations and strong dividends.
Consider Barrick for its Tier One assets, focusing on low-cost, high-output gold and copper mines.
Diversify with majors like Rio Tinto and BHP for broad exposure to multiple key industrial metals.

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People in a coal mine. — Image source: Getty Images.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Rio Tinto Group (NYSE:RIO)	$132.4 billion	3.81%	Metals and Mining
BHP Group (NYSE:BHP)	$214.2 billion	3.15%	Metals and Mining
Barrick Mining (NYSE:B)	$69.7 billion	2.03%	Metals and Mining
Freeport-McMoRan (NYSE:FCX)	$87.5 billion	0.49%	Metals and Mining
MP Materials (NYSE:MP)	$12.9 billion	0.00%	Metals and Mining

Data as of May 7, 2026. Showing 5 of 5 tickers.

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NYSE: B

Barrick Mining

Today's Change

(7.39%) $2.86

Current Price

$41.58

Key Data Points

Market Cap

$70B

Day's Range

$40.23 - $41.62

52wk Range

$17.41 - $54.69

Volume

47K

Avg Vol

13M

Gross Margin

48.22%

Dividend Yield

2.03%

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Barrick Mining (B +7.39%) is one of the largest gold miners in the world, with operations in 17 countries. It's also a leading copper producer.

One thing that sets Barrick apart from other mining companies is its focus on Tier One mining assets. It defines a Tier One mine as one that:

Produces more than 500,000 ounces per year.
Has at least 10 years of productive life remaining.
Delivers total cash costs per ounce in the lower half of the industry cost curve.

Tier One mines produce a relatively steady supply of low-cost gold and copper, enabling Barrick to continue generating profits even when prices are low.

Barrick’s Tier One mines can generate significant cash flow, enabling it to pay an attractive dividend. Barrick announced a new dividend policy in 2026, targeting a payout of 50% of its annual free cash flow. It does that through a base dividend, which it boosted by 40% in 2026. The company will also pay a performance top-off dividend each year. Its dividend could be higher or lower than its 50% target, depending on the strength of its cash flow, capital needs, balance sheet, and other factors.

It also invests in exploring and developing new mines and expanding existing ones to increase production. Those projects have Barrick on track to grow its gold production from nearly 3.3 million ounces in 2025 to 3.4 million-3.75 million ounces by 2029. Additionally, Barrick expects to expand its copper output from 220,000 tons in 2025 to between 255,000 and 285,000 tons by 2028.

Barrick also plans to complete an initial public offering of its North American gold assets by the end of 2026 to highlight the value of this portfolio.

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2. BHP Group

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NYSE: BHP

BHP Group

Today's Change

(6.42%) $5.09

Current Price

$84.33

Key Data Points

Market Cap

$214B

Day's Range

$82.18 - $84.42

52wk Range

$45.74 - $84.42

Volume

Avg Vol

3.5M

Gross Margin

40.96%

Dividend Yield

3.15%

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BHP Group (BHP +6.42%) is a diversified resources company. It operates fully integrated mining assets that extract and process copper, iron ore, metallurgical coal, zinc, and potash. Its mining assets span the globe.

The large-scale global mining company combines its low-cost operations with a strong balance sheet, which it strengthens by routinely selling non-core assets. It has unlocked $6.3 billion in value through monetization transactions over the past year, putting it on track to reach $10 billion in the near term. It also seeks to acquire rival miners to increase its scale and growth prospects. In 2025, the company partnered with Lundin Mining (LUNMF +7.53%) to acquire Filo for its Filo del Sol copper project. BHP Group invested $2 billion in the 50/50 joint venture. BHP Group tried to acquire Anglo American in late 2025 to further bolster its copper business, but walked away after the two companies couldn't reach an agreement.

The mining company is investing heavily to grow its production. BHP plans to grow its copper-equivalent production at a 3% to 4% compound annual rate through 2035. Notable projects include Vicuna, a potential top-five global copper and gold project. Stage one would cost $8 billion and come online by 2030.

Although its cash flow ebbs and flows with commodity prices, BHP’s low costs enable it to generate free cash flow to pay dividends and repurchase stock. The company set a target to pay out at least 50% of its profits each reporting period in dividends, so its dividend outlay will rise or fall with its cash flow.

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3. Rio Tinto

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NYSE: RIO

Rio Tinto Group

Today's Change

(4.99%) $5.01

Current Price

$105.51

Key Data Points

Market Cap

$132B

Day's Range

$102.91 - $105.97

52wk Range

$55.64 - $105.97

Volume

12K

Avg Vol

Gross Margin

25.17%

Dividend Yield

3.81%

Rio Tinto (RIO +4.99%) is a diversified mining company. It's a leading producer of the three most consumed industrial metals -- iron ore, aluminum, and copper. Rio Tinto is also building a world-class lithium operation.

Like BHP Group, Rio Tinto aims to be a low-cost producer of metals and minerals. It's able to keep costs down by operating integrated, large-scale mining assets. Rio Tinto's investments in new technologies, such as autonomous vehicles, artificial intelligence (AI), and renewable energy, reduce costs and increase productivity.

Rio Tinto has proven its ability to make money even during weak market conditions. It has a strong balance sheet and routinely sells noncore mines to reallocate cash to better opportunities. For example, in recent years, it has exited the coal mining business due to the sector’s dwindling prospects amid climate change concerns.

Meanwhile, in late 2024, Rio Tinto approved the $2.5 billion Rincon project in Argentina, its first commercial-scale lithium operation. It followed that up in early 2025 by closing its $6.7 billion acquisition of Arcadium Lithium. The deal establishes the mining giant as a major lithium producer.

The company also regularly invests in expanding its best mines. It approved the $180 million Norman Creek access project in August 2025 at its world-class Amrun bauxite mine. It's also evaluating the even larger-scale Kangwinan project at the mine. Rio Tinto also approved the Richards Bay Minerals' Zulti South project in early 2026. The $473 million investment will support the continued sales of titanium oxide.

Rio Tinto is another mining company that pays dividends to shareholders and repurchases its own shares throughout the economic cycle. It pays 40% to 60% of its cash flow in dividends, with payments varying each period based on its earnings.

Like BHP Group, Rio Tinto has pursued a major acquisition in the past year (Glencore), but the two sides failed to reach an agreement.

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NYSE: FCX

Freeport-McMoRan

Today's Change

(5.57%) $3.21

Current Price

$60.89

Key Data Points

Market Cap

$88B

Day's Range

$60.01 - $61.28

52wk Range

$35.01 - $70.97

Volume

41K

Avg Vol

17M

Gross Margin

25.93%

Dividend Yield

0.49%

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Freeport-McMoRan is one of the world's leading copper producers. It has mines in Indonesia, South America, and the U.S. Its mines also produce gold and molybdenum, a mineral primarily used to strengthen steel.

The company is investing heavily to expand its copper business. It's spending more than $1 billion to develop and implement new leaching technologies to maximize the recoveries at its existing mines. Freeport is also working towards a potential $3.5 billion project to expand its Bagdad mine in Arizona. Those investments could boost its U.S. copper production 60% by 2030. The company is also evaluating potential large-scale expansions of its Lone Star (Arizona), El Abra (Chile), and Grasberg (Indonesia) mines.

Freeport-McMoRan also aims to return about 50% of its cash flow to shareholders through its base dividend, share repurchases, and variable dividends.

5. MP Materials

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NYSE: MP

MP Materials

Today's Change

(6.74%) $4.59

Current Price

$72.65

Key Data Points

Market Cap

$13B

Day's Range

$67.61 - $73.10

52wk Range

$18.64 - $100.25

Volume

84K

Avg Vol

5.5M

Gross Margin

-280.15%

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MP Materials is the only fully integrated U.S. producer of rare-earth metals. It operates the world's second-largest rare-earth mine in Mountain Pass, Calif. It also has an advanced metallization and magnet manufacturing facility in Texas. Rare-earth metals are crucial to many industries, including the technology and defense sectors.

The company received a $400 million investment by the Department of Defense (DoD) in 2025 to support the construction of a second manufacturing facility. Additionally, it signed a $500 million partnership with Apple (AAPL +1.17%) to produce recycled rare-earth magnets in the U.S. The company also joined the DoD in late 2025 on a partnership with the Saudi Arabian Mining Company to develop a rare-earth refinery joint venture in Saudi Arabia. These deals position MP Materials to grow in the coming years.

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The future of the mining industry

The mining industry is crucial to the economy, especially for supporting the growth of new technologies. Industrial metals like copper are crucial to electric vehicles and renewable energy. Meanwhile, demand for lithium, cobalt, and rare-earth metals is rising due to their importance for batteries and the technology industry. These catalysts should enable mining companies to invest capital in exploring for and developing new mines, supporting growing production and potentially rising stock prices in the mining sector.

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Investing in mining stocks: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Apple and BHP Group and has the following options: short January 2026 $265 calls on Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends BHP Group and MP Materials. The Motley Fool has a disclosure policy.

Best Mining Stocks to Buy in 2026: Your Complete Guide

Key Points

Key Data Points

2. BHP Group

Key Data Points

3. Rio Tinto

Key Data Points

Key Data Points

5. MP Materials

Key Data Points

The future of the mining industry

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Investing in mining stocks: FAQ

Are mining stocks a good investment?

What are the best mining stocks to invest in?

What are the mining stocks with the highest dividends?

Are mining stocks considered growth or value stocks?

Does Warren Buffett invest in mining?

What are the top five mining companies?

1. Barrick Mining

2. BHP Group

3. Rio Tinto

4. Freeport-McMoRan

5. MP Materials

Types of Mining Stocks

How to invest in mining stocks

Should you buy mining stocks?

Factors That Influence Mining Stocks

Benefits and risks of investing in mining stocks

Building a Mining Stock Portfolio

The future of the mining industry

Related investing topics

FAQ

Top mining stocks to buy in 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points