The Golden Rule portfolio

Based in Canada, Franco-Nevada has a diversified portfolio with deals in gold, silver and platinum group metals such as platinum and palladium. Franco-Nevada also has iron ore, oil and gas mining contracts. In five years, Franco-Nevada has achieved 45% annual growth in total earnings per share (EPS). The attraction of higher dividends has served as an additional motivating factor for investors in 2021. In May, Franco-Nevada announced a 15.4% increase in its quarterly dividend per share from $0.26 to $0.30.

Alcoa Corp. is a leading producer of aluminum, bauxite and alumina products. The company serves customers in the aluminum industry around the world. January 19 Alcoa Corp. reported its 2021 results, reporting a record high annual net income of $429 million and earnings per share of $2.26. The company attributed the record results to its strong production numbers and higher alumina and aluminum prices. Goldman Sachs Group Inc. raised its 12-month aluminum target to a record $4,000 a ton.

Freeport-McMoRan is among the best companies to buy to benefit from commodity price inflation. Freeport, as a major copper producer, is likely to win in the next few years. In particular, Freeport-McMoRan produced 3.8 billion pounds of copper in 2021. Production is expected to rise to 4.3 billion pounds and 4.5 billion pounds, respectively, this year and next year. Thus, Freeport will benefit from higher copper prices and production growth. Freeport recorded a net income of $1.1 billion in Q4 2021, up from $708 million in Q4 2020.

Newmont Corporation is the world's largest gold miner. Full year consensus estimates suggest earnings of $3.39 per share and revenue of $12.66 billion. These results would represent +14.53% and +3.61% YoY changes, respectively. Newmont Corporation has a good balance sheet. As of December 2021, Newmont reported $5.0 billion in cash. A strong balance sheet and cash flow also enable Newmont to pay out higher dividends along with accelerated share repurchases.