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Dividend yields show miners are cheap but risky

Is even a dividend cut fairly priced for the miners?
Dividend yields show miners are cheap but risky
  • Only two FTSE All Share companies pass all our dividend yield tests
  • There are questions to be asked about miners but they might now be good value 

Exposure to Chinese demand has long been listed as a bull point for mining companies. In the wake of the Evergrande real estate crisis, however, worries about a potential collapse in demand for raw materials from China has caused the shares of many mining companies to sell off. 

Dividend yields spike when share prices fall, so are seen as a value indicator but that also means a very high dividend yield can be the sign of a value trap. Investors should bear this in mind when thinking the miners now look good value. 

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