Commodity stocks are attached to companies that sell basic goods. And these can include gold, silver, copper, corn, or oil. There are plenty of others, too. The main way to know if an item is a commodity is this:

“Does it matter very much who produced these goods? Are they being advertised on the product?”

If they aren’t, it’s probably a commodity. Corn is a great example of this. Gold is, too. Now, I’m not talking about who is selling it. I’m talking about who originally produced the product. And, that could also be the company who’s selling it.

Commodity stocks are a great hedge against inflation. And that’s because when inflation rises, so do the prices of these goods. But, they are a necessity for most. So, the masses are forced to continue buying. Meanwhile, supply continues to dwindle. Thus, driving prices up even higher. So, it becomes a never-ending cycle. That is, until more supply can be pumped into the marketplace.

And when the prices of these commodities go up, so do the accompanying stocks. And not just for the producers. This happens all along the supply chain.

Below, I’ve listed a dozen of the best commodity stocks to watch and buy.

Top commodity stocks to buy.

Best Commodity Stocks

  • LyondellBasell Industries NV (NYSE: LYB)
  • Vale SA (NYSE: VALE)
  • Freeport McMoRan Inc. (NYSE: FCX)
  • Alcoa Corporation (NYSE: AA)
  • Barrick Gold Corporation (NYSE: GOLD)
  • Rio Tinto Limited (OTC: RTNTF)
  • Cleveland- Cliffs Inc. (NYSE: CLF)
  • Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (Nasdaq: PDBC)
  • Newmont Corporation (NYSE: NEM)
  • Southern Copper Corp. (NYSE: SCCO)
  • Schweitzer- Mauduit International, Inc. (NYSE: SWM)
  • SunCoke Energy, Inc. (NYSE: SXC)

Commodity Stocks to Buy

No. 12 LyondellBasell Industries NV

Dividend Yield: 4%

Market Cap: $34 billion

This commodity stock headquarters in the Netherlands. And there, it licenses polyethylene and polypropylene technologies. For five years in a row, Fortune has named it as one of the “World’s Most Admired Companies.” So, the company’s vision of being the most valuable company in its industry has come true.

No. 11 Vale SA

Dividend Yield: 15%

Market Cap: $90 billion

Vale SA operates worldwide, producing iron ore, nickel and other related products. Plus, employing over 120K people, this is a huge business. And, the company offers logistics such as shipping. It’s also engaged in the energy sector. The core of this company was incorporated in 1942. So, it has a long history and a solid foundation for success.

No. 10 Freeport McMoRan Inc.

Dividend Yield: $65 billion

Market Cap: 0.8%

Freeport McMoRan operates in North and South America. And, this commodity stock produces copper, gold and other minerals. Plus, they own a mine in Indonesia. Recently, they’ve appointed another person to the Board of Directors, Hugh Grant. He’s the CEO of Monsanto Company.

No. 9 Alcoa Corporation

Dividend Yield: 0.5%

Market Cap: $14 billion

This commodity stock deals only with aluminum. And it seems they are constantly striving to innovate and change the world with it. Plus, they are heading toward net-zero emissions. And another great thing that the company boasts about is inventing the industry. I dug a little into its history. And, as it turns out, it did. All the way back in 1886, Charles Hall figured out a way to produce aluminum. And, it was a process that cut down on the cost a lot. Then, he founded the company that is now Alcoa.

No. 8 Barrick Gold Corporation

Dividend Yield: No

Market Cap: $41 million

This commodity stock headquarters in Canada. And, no surprise, they produce gold and copper. I say “no surprise” because some of the world’s best resource stocks come out of Canada. Not only that, but the company operates worldwide, in thirteen other countries.

No. 7 Rio Tinto Limited

Dividend Yield: No

Market Cap: $112 million

This commodity stock was founded in 1873 in Spain. And, the company is very ambitious. It does business in 35 countries worldwide. On top of that, they have a whole list full of commodities they produce. Aluminum, copper, boron and iron are only a few. Even diamonds are mined by Rio Tinto. Plus, they make sure to protect wildlife that their facilities may interact with.

No. 6 Cleveland- Cliffs Inc.

Dividend Yield: No

Market Cap: $13 billion

This commodity stock is an oil company that focuses on producing iron ore. It takes care of the entire supply chain. And, the company even does some stamping and creates machines. Plus, it’s the largest producer in the entire U.S. of flat-rolled steel.

No. 5 Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

Dividend Yield: 41.82% (in the past year)

Market Cap: none, since this is an ETF

This ETF and commodity stock is heavily exposed to the energy sector. And, that would explain the huge gains in the past year. But, you may still be able to ride this huge wave into next year. That is, if oil and gas prices keep going higher. But, there might be some alternative energy stocks thrown in there. And, in that case, it may continue to give great returns to investors.

No. 4 Newmont Corporation

Dividend Yield: 3%

Market Cap: $60 billion

This commodity stock is the world’s largest gold mining company. And, it has mines all over the globe. Including the United States, Dominican Republic and Suriname.

No. 3 Southern Copper Corp.

Dividend Yield: 6%

Market Cap: $54 billion

Founded in 1952, this commodity stock has a long, rich history. And that lays a great foundation for success within the company and the industry. Plus, it’s large market cap and big dividend yield are also great indicators of company health.

No. 2 Schweitzer- Mauduit International, Inc.

Dividend Yield: 6%

Market Cap: $920 million

This commodity stock produces all sorts of materials and everyday products. And that includes things like films, nets, paper and textiles. Recently, they’ve partnered up with Anko Glass. And, the company is working on something very exciting. It’s creating a special type of glass for autonomous vehicles. And this is a big deal. Because companies have been working on their mass production under the surface.

Commodity Stocks to Invest In No. 1 SunCoke Energy, Inc.

Dividend Yield: 3%

Market Cap: $680 million

Suncoke is a commodity stock that has an edge. So, rather than producing these commodities, they handle them. The company takes care of logistics and processing the raw materials. Also, they engage in cokemaking. And coke is an ingredient that’s needed to blast steel. SunCoke can make 5.9 million tons of coke per year. So, they are set when it comes to processing and logistics.