DRR has struggled over the last few days as iron ore royalties fell by ~25% in line with the underlying bulk commodity. DRR is a royalty scheme from one of BHP’s assets and the company simply passes 100% of the earnings through as a dividend, we do like DRR as a dividend play and it’s definitely an alternative to the large miners who can come with higher operational risk. When Iron Ore bottoms, this will be a good way to play upside in the sector.
- We like DRR as a dividend play, it’s currently forecast to pay more than 6% over the next 12 months.
MM likes DRR when iron ore finds a base
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