Materials and resources companies are businesses involved in the extraction, production, and distribution of raw materials and natural resources. These can include companies that extract and mine coal, oil, natural gas, metals, and minerals, as well as those involved in the production of forest products, such as paper, pulp and lumber.
Investing in materials and resources companies can provide investors with the opportunity to benefit from the long-term growth potential of the global economy, as these companies provide the raw materials that are used in the production of goods and services. Materials and resources companies can provide a steady stream of dividends and potential for capital appreciation. Additionally, investing in these companies can provide a level of diversification to an investment portfolio.