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.
Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.