first_img See all posts by Zaven Boyrazian Our 6 ‘Best Buys Now’ Shares 13 I’d buy this dirt-cheap high-yielding dividend stock Operating Profit 2019 17 Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! 11 46 Operating a mining business is a difficult feat. Besides the massive costs of setting up a site, there is a plethora of regulatory restrictions surrounding safety, maintenance of equipment, and logistics that add to operational expenses. Yet I believe this high-yielding dividend stock – around 9% at current levels – can avoid all these complications while still obtaining extracted resources.Unlike a traditional mining company, Anglo Pacific Group (LSE:APF) does not operate any mining sites. Instead, it provides funding for other mining companies – including Rio Tinto and BHP Group– to develop or expand extraction sites.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In exchange, Anglo Pacific receives a portion of the minerals dug up during the site’s active life as a form of royalty payment.Since the company is not directly involved with operating any of the mines, its operational expenses are near non-existent, resulting in operating profit margins of nearly 80%!As of June 2020, the high-yielding dividend stock has 15 sites within its portfolio, eight of which are mature producers, four in early-stage, and three in development. They’re also geographically diversified around the world, giving exposure to a wide range of commodities as well.The ever-expanding portfolio combined with a low operating cost business model is the driving force behind the firm’s average 41% growth in revenue, 58% growth in operating profits, and 17% growth in shareholder dividends over the last four years. 20 Image source: Getty Images Simply click below to discover how you can take advantage of this. £m 41 2018 43 56 30 There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Avg. Year-On-Year Growth (%) Gross Dividend 35 40 18 16 2017 Despite the incredible performance, the share price of this high-yielding dividend stock has dropped by nearly 50% since January 2020.Covid-19 has caused a large number of disruptions across many industries, and mining is no exception. Due to the closure of multiple sites throughout March, the firm’s performance is likely to drop significantly for 2020 as a whole. This, combined with the drop coal prices – a commodity that comprises 36% of Anglo Pacific’s portfolio – explains the selloff.However, the majority of the sites are now back in operation, with management expecting full operations will be back up and running by Q3 of 2020.The factory shutdowns in China that created the sharp decline in coal prices have also come back online, leading to a steadily recovering commodity price.Long-term the demand for coal is set to decline as more western countries begin switching to renewable energy generation. The management team of this high-yielding dividend stock is fully aware of this and have been actively increasing their investments in more long-lived commodities.Back in 2013, coal represented nearly 76% of the overall portfolio. Today it’s closer to 36% and is continuing its downward trend. At the same time, other materials, such as iron ore and other base metals, take its place.Image source: Anglo Pacific Group’s June 2020 Investor PresentationThe catalyst behind the decline in share price is ultimately a short-term problem. I believe the overreaction from investors has allowed Anglo Pacific to become vastly undervalued, given its long-term potential. With no cut to 2020’s dividend, investors can now take advantage of a 9% yield on a stock that I believe will further appreciate in share price as well. 58 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 2016 Zaven Boyrazian owns shares in Anglo Pacific Group. The Motley Fool UK has recommended Anglo Pacific. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Zaven Boyrazian | Friday, 16th October, 2020 | More on: APF Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Revenue Enter Your Email Address 10 Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today…last_img read more