2 Mining Stocks That Are Looking Attractive To Buy

Mining stocks have come-off recent highs and have now fallen to near 52-week lows. These makes select mining stocks attractive largely because of their dividend yields. Here are a couple of mining stocks, which could be attractive from a long-term perspective.

Hindustan Zinc

Shares in Hindustan Zinc shares are just 10 per cent below their 52-week lows. At Rs 205, the stock is way below its 150 day moving average of Rs 223 and also way below its 200-day moving average of Rs 233.

The shares are also looking attractive from a dividend perspective. Last year for 2018-19, the company declared a dividend of Rs 20 per share, taking the dividend yield to 9.57 per cent at the current market price. Even if the company reduces the dividend and declares Rs 15 as dividend the yield still works to around 7.3 per cent making the shares very attractive.

The company is one of the top players in the world for zinc and lead and also intends to come in the top three for silver production. The stock is also quoting at a reasonable p/e of 10 times one year forward earnings.

Coal India

The shares of Coal India too are attractive at the current levels. The shares are currently trading at Rs 187, which is again not far from its 52-week low of Rs 178. Again, like Hindustan Zinc, the shares are attractive from a dividend perspective. If last year's dividend of Rs 13.1 per share is maintained, the dividend yield on the stock works to 7 per cent.

Coal India is a cash rich company, with not much money likely to be spent on future projects, which means that the dividend distribution would continue to remain healthy in the coming years.

Investors who are looking at stable and assured dividends could buy into the stock for long-term investment. The shares are also trading way below their long term averages, which makes the shares very attractive.