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The Basic Materials sector contains companies involved in the extraction and processing of raw materials. This sector includes sub-sectors such as mining, forestry, and chemicals. Examples of companies in this sector include Agnico Eagle Mines, a Canadian gold miner, as well as international miners like BHP and Rio…
A Canadian investor may seek exposure to the Basic Materials sector for diversification, as it tends to perform differently than other sectors. This sector can also be attractive based on a macro thesis, such as expectations of increased infrastructure spending or commodity demand.
Canadian investors should consider balance-sheet quality and competitive moat when picking individual stocks in the Basic Materials sector. A company's ability to withstand cyclical downturns is also crucial. Additionally, evaluating a stock's valuation relative to its peers can help identify potential opportunities.
For Canadian investors in Basic Materials stocks, a non-registered account is tax-optimal due to the potential for eligible dividends, which qualify for the Canadian dividend tax credit. This credit can reduce the tax payable on dividend income from Canadian corporations.
BHP — is a global mining company that extracts and processes natural resources such as iron ore, copper, and coal. RIO — is a multinational mining corporation that produces a range of commodities including iron ore, aluminum, and copper.
Non-registered — Many Canadian mining and chemical companies pay eligible dividends, which benefit from the dividend tax credit in a taxable account.
The best basic materials stocks listed in Canada are typically those of companies involved in the extraction and production of natural resources. These companies are often leaders in the mining and forestry industries, with a strong presence in the Canadian market.
Canadian investors in the Basic Materials sector should consider the tax implications of holding U.S. or Canadian dividend-paying stocks. In a non-registered account, eligible Canadian dividends may qualify for the dividend tax credit, reducing the tax burden. However, U.S.
For Canadian investors interested in the Basic Materials sector, buying a sector ETF can provide diversified exposure to a range of stocks, reducing risk and volatility. This approach can be beneficial for those who want to gain broad access to the sector without having to select individual stocks.
ETFs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
LI LIN Linde plc | Basic Materials | NASDAQ | +3 | $234.7B | US$507.57 | +12.3% | 33.00 | 1.29% | 0.74 | |
BH BHP BHP Group Limited | Basic Materials | NYSE | +8 | $230.8B | US$90.85 | +74.6% | 22.06 | 2.99% | 0.80 | |
SC SCCO Southern Copper Corporation | Basic Materials | NYSE | +87 | $164.0B | US$196.59 | +103.9% | 32.37 | 2.09% | 1.08 | |
RI RIO Rio Tinto Group | Basic Materials | NYSE | +16 | $135.3B | US$107.86 | +82.1% | 17.47 | 3.78% | 0.63 | |
AE AEM.TO Agnico Eagle Mines Limited | Basic Materials | TSX | +123 | $119.4B | $238.71 | +52.5% | 17.24 | 0.97% | 0.57 | |
NE NEM Newmont Corporation | Basic Materials | NYSE | +206 | $114.7B | US$107.47 | +108.1% | 14.24 | 0.95% | 0.45 | |
FC FCX Freeport-McMoRan Inc. | Basic Materials | NYSE | +150 | $101.5B | US$70.64 | +59.3% | 34.77 | 0.91% | 1.32 | |
AB ABX.TO Barrick Mining Corporation | Basic Materials | TSX | +25 | $97.5B | $58.21 | +122.7% | 11.76 | 1.63% | 1.07 | |
AE AEM Agnico Eagle Mines Limited | Basic Materials | NYSE | +123 | $85.8B | US$171.65 | +53.8% | 17.25 | 0.98% | 0.57 | |
WP WPM.TO Wheaton Precious Metals Corp. | Basic Materials | TSX | +69 | $79.0B | $173.92 | +47.8% | 33.76 | 0.58% | 1.18 | |
SH SHW The Sherwin-Williams Company | Basic Materials | NYSE | +155 | $73.1B | US$296.49 | -13.6% | 29.16 | 1.05% | 1.16 | |
EC ECL Ecolab Inc. | Basic Materials | NYSE | +164 | $72.0B | US$255.67 | -3.6% | 34.59 | 1.14% | 0.93 | |
CR CRH CRH plc | Basic Materials | NYSE | $70.8B | US$105.89 | +5.9% | 20.18 | 1.43% | 1.23 | ||
B B Barrick Mining Corporation | Basic Materials | NYSE | +51 | $70.1B | US$41.86 | +122.9% | 11.75 | 1.65% | 1.07 | |
VA VALE Vale S.A. | Basic Materials | NYSE | +13 | $68.5B | US$16.06 | +89.9% | 24.62 | 7.74% | 0.75 | |
AP APD Air Products and Chemicals, Inc. | Basic Materials | NYSE | +122 | $62.9B | US$282.27 | +8.4% | 29.33 | 2.60% | 0.78 | |
FN FNV.TO Franco-Nevada Corporation | Basic Materials | TSX | +51 | $61.5B | $318.84 | +35.7% | 32.46 | 0.75% | 0.89 | |
NU NUE Nucor Corporation | Basic Materials | NYSE | +146 | $58.7B | US$257.73 | +117.7% | 24.80 | 0.90% | 1.88 | |
WP WPM Wheaton Precious Metals Corp. | Basic Materials | NYSE | +69 | $56.7B | US$124.95 | +49.3% | 33.57 | 0.59% | 1.18 | |
MT MT ArcelorMittal S.A. | Basic Materials | NYSE | $54.3B | US$71.39 | +115.6% | 18.17 | 0.86% | 1.72 | ||
CT CTVA Corteva, Inc. | Basic Materials | NYSE | +130 | $52.0B | US$77.80 | +14.3% | 42.31 | 0.92% | 0.59 | |
K K.TO Kinross Gold Corporation | Basic Materials | TSX | +6 | $46.8B | $39.20 | +93.6% | 12.89 | 0.48% | 1.37 | |
NT NTR.TO Nutrien Ltd. | Basic Materials | TSX | +61 | $45.9B | $95.69 | +23.4% | 13.88 | 3.17% | 1.09 | |
AU AU AngloGold Ashanti plc | Basic Materials | NYSE | $45.4B | US$89.85 | +122.4% | 14.22 | 4.75% | 0.62 | ||
FN FNV Franco-Nevada Corporation | Basic Materials | NYSE | +51 | $44.2B | US$229.12 | +35.6% | 32.45 | 0.76% | 0.89 | |
ST STLD Steel Dynamics, Inc. | Basic Materials | NASDAQ | +139 | $39.7B | US$275.13 | +90.7% | 27.85 | 0.81% | 1.49 | |
FM FM.TO First Quantum Minerals Ltd. | Basic Materials | TSX | $37.5B | $45.30 | +76.7% | — | — | 1.94 | ||
VM VMC Vulcan Materials Company | Basic Materials | NYSE | +121 | $37.0B | US$285.30 | -3.1% | 33.56 | 0.74% | 1.09 | |
LU LUN.TO Lundin Mining Corporation | Basic Materials | TSX | $36.2B | $42.29 | +187.6% | 21.45 | 0.27% | 1.98 | ||
ML MLM Martin Marietta Materials, Inc. | Basic Materials | NYSE | +112 | $35.0B | US$583.15 | -5.0% | 36.49 | 0.57% | 1.14 | |
GF GFI Gold Fields Limited | Basic Materials | NYSE | $33.9B | US$37.94 | +85.2% | 10.12 | 5.82% | 0.64 | ||
KG KGC Kinross Gold Corporation | Basic Materials | NYSE | +52 | $33.6B | US$28.17 | +97.8% | 12.84 | 0.48% | 1.37 | |
NT NTR Nutrien Ltd. | Basic Materials | NYSE | +61 | $33.0B | US$68.81 | +19.5% | 13.96 | 3.21% | 1.09 | |
TE TECK Teck Resources Limited | Basic Materials | NYSE | +42 | $32.4B | US$67.23 | +67.8% | 24.23 | 0.55% | 1.57 | |
PA PAAS.TO Pan American Silver Corp. | Basic Materials | TSX | +44 | $30.8B | $73.18 | +124.8% | 17.93 | 1.08% | 1.49 | |
CD CDE.TO Coeur Mining, Inc. | Basic Materials | TSX | +83 | $25.9B | $25.17 | — | 15.47 | 0.21% | 1.24 | |
DO DOW Dow Inc. | Basic Materials | NYSE | +105 | $25.5B | US$35.40 | +33.5% | — | 4.15% | 0.45 | |
PP PPG PPG Industries, Inc. | Basic Materials | NYSE | +135 | $24.8B | US$111.39 | -2.1% | 16.19 | 2.51% | 1.05 | |
PA PAAS Pan American Silver Corp. | Basic Materials | NYSE | +44 | $22.2B | US$52.59 | +127.1% | 17.98 | 1.09% | 1.49 | |
AG AGI.TO Alamos Gold Inc. | Basic Materials | TSX | +46 | $22.0B | $52.49 | +46.7% | 16.30 | 0.39% | 1.29 | |
LY LYB LyondellBasell Industries N.V. | Basic Materials | NYSE | $21.7B | US$67.30 | +31.9% | — | 6.18% | 0.35 | ||
AA AA Alcoa Corporation | Basic Materials | NYSE | +101 | $21.3B | US$80.86 | +158.1% | 19.91 | 0.52% | 1.51 | |
LU LUG.TO Lundin Gold Inc. | Basic Materials | TSX | $21.0B | $86.69 | +39.4% | 17.63 | 5.91% | 1.41 | ||
PK PKX POSCO Holdings Inc. | Basic Materials | NYSE | $20.7B | US$68.53 | +73.9% | 37.71 | 2.47% | 1.67 | ||
RS RS Reliance, Inc. | Basic Materials | NYSE | +86 | $20.1B | US$393.95 | +24.2% | 24.81 | 1.31% | 0.95 | |
AL ALB Albemarle Corporation | Basic Materials | NYSE | +140 | $19.9B | US$168.34 | +201.7% | — | 0.92% | 1.36 | |
DD DD DuPont de Nemours, Inc. | Basic Materials | NYSE | +122 | $19.4B | US$47.97 | +70.7% | 127.42 | 1.65% | 1.06 | |
ED EDV.TO Endeavour Mining plc | Basic Materials | TSX | $19.0B | $78.71 | +95.2% | 17.92 | 2.33% | 1.12 | ||
IF IFF International Flavors & Fragrances Inc. | Basic Materials | NYSE | +88 | $18.8B | US$73.56 | -0.2% | 23.54 | 2.10% | 0.94 | |
CD CDE Coeur Mining, Inc. | Basic Materials | NYSE | +83 | $18.7B | US$18.15 | +120.7% | 15.58 | 0.21% | 1.24 |