Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, iron-ore miner Cliffs Natural Resources (CLF -6.84%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Cliffs and see what CAPS investors are saying about the stock right now.
Cliffs facts
Headquarters (founded) |
Cleveland (1847) |
Market Cap |
$5.2 billion |
Industry |
Steel |
Trailing-12-Month Revenue |
$6.2 billion |
Management |
Chairman/CEO Joseph Carrabba CFO Terrance Paradie |
Return on Equity (average, past 3 years) |
25.8% |
Cash / Debt |
$36.3 million / $3.9 billion |
Dividend Yield |
6.9% |
Competitors |
Alpha Natural Resources (NYSE: ANR) CONSOL Energy (CNX -1.49%) Peabody Energy (BTU) |
On CAPS, 96% of the 1,559 members who have rated Cliffs believe the stock will outperform the S&P 500 going forward.
Just a few weeks ago, one of those Fools, DrGoldin, highlighted Cliffs as a rather solid bargain opportunity:
I understand that iron-ore prices are under pressure. I understand that the company isn't particularly well-diversified. I also see that their dividend yield is over 6% and their payout ratio is tiny. And China is not CRASHING; it's just slowing down. [Cliffs] has repeated that the dividend is safe, and I really don't see much danger. So why on earth is this not a buy at these prices? I'm getting hammered right now because I made my buy call a touch early, but in the long run I don't think it's going to matter much.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cliffs may not be your top choice.
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