This week the DividendMax Optimiser and Countdown combine to provide the dividend of the week. Mining stocks are currently bombed out with commodity prices under pressure and this is the time for the contrarian investor to take a stance. A lot of people are fretting about China's growth slowing, but surely this is inevitable. The Government is now focussing on higher-end productivity and wants to move away from the 'made in China' image. They are looking to increase the overall standard of living with better healthcare, education, etc. Even so, the economy still continues to grow at very high rates. If we believe all of the news coming out of America, then that means the two largest economies in the world are growing. It might not be full steam ahead, but the US is certainly moving through the gears and China is in cruise control.
So, now could be a good time to look at mining stocks. One such company is India based Vedanta, which is now trading at its net asset value. It has a very strong track record and is very well diversified being involved with Oil and Gas production and Electricity power generation as well as pure mining activities. Obviously, you need to recognise that earnings are currently under pressure and the dividends could be in short term danger but when commodity prices do turn, the mining stocks will rally hard.
