Keep an eye on beaten-down shares of Albemarle (ALB).
While investors wait for it to recover, they can collect its current dividend of 40 cents a share. Plus, we have to consider that lithium prices cannot stay this low for long.
In fact, according to The Wall Street Journal, “A recovery isn’t yet in sight, but one will have to come eventually. Lithium prices are now too low to justify a chunk of today’s ore extraction in Australia and China, let alone investment in new production necessary to feed expected growth in the EV market. That is setting up the conditions for a shortage and rally.”
Eventually, fear should give way to opportunity with lithium stocks, like ALB. Until then, at least investors can pick up a small dividend along the way.