Mining companies like Cliffs Natural Resources (CLF -0.49%) 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.
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.