Aluminum stocks make a great investment case, due to the variety of the metals use cases.
It is a silver, lightweight metal with low density. Some of the products it is found in include household appliances, like fridges and dishwashers.
Aluminum is also found in are kitchen utensils, foils, cans, cars and airplanes.
The aluminum market, last valued at $175.85 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 5.5% from 2022-2030 (Vantage Market Research, 2021).
As investors continue to search for upside in battery metals for electric vehicles, aluminum stocks should also be kept on your radar.
Below, we will present the 7 Best Aluminum Stocks to consider in 2023!
Best Aluminum Stocks for 2023
- Howmet Aerospace
- Alcoa
- Reliance Steel & Aluminum
- Constellium SE
- Century Aluminum
- Arconic Corporation
- Kaiser Aluminum
1. Howmet Aerospace (NYSE: HWM)
- Ticker: HWM
- Dividend Yield: 0.37%
- 10-Yr Dividend Growth Rate: N/A
- Payout Frequency: Quarterly
- Payout Ratio: 9.01%
- Market Cap: $17.92 Billion
Howmet Aerospace is an American Aerospace manufacturer headquartered in the United States.
The company has operations worldwide, with facilities in the United States, Canada, Mexico, Japan, Hungary, UK, and France. Its key products include titanium structures, jet engines, aerospace applications, heavy trucks and forged aluminum wheels.
Howmet Aerospace employs more than 20,000 people and has approximately $10.25 billion in total assets.
In 2022, the company had annual revenues of $5.66 Billion.
Howmet’s high ROE and strong cash flows make it one of the best aluminum stocks to buy in 2023.
2. Alcoa (NYSE: AA)
- Ticker: AA
- Dividend Yield: 0.98%
- 10-Yr Dividend Growth Rate: N/A
- Payout Frequency: Quarterly
- Payout Ratio: N/A
- Market Cap: $7.30 Billion
Alcoa is an American multinational aluminum producer headquartered in Pennsylvania, United States.
They are the 8th largest aluminum producer in the world. Its primary products include raw aluminum and fabricated aluminum.
Alcoa employs more than 13,000 people and has approximately $14.75 billion in total assets.
In 2022, the company had annual revenues of $12.45 Billion.
Alcoa’s profitability metrics are below industry peers, but the company does forecast growth ahead. If you’re considering investing in a leading aluminum producer, Alcoa should be one of the first on that list.
3. Reliance Steel & Aluminum (NYSE: RS)
- Ticker: RS
- Dividend Yield: 1.63%
- 10-Yr Dividend Growth Rate: 23.51
- Payout Frequency: Quarterly
- Payout Ratio: 11.70%
- Market Cap: $14.4 Billion
Reliance Steel & Aluminum is a metals processing and distribution company headquartered in Arizona, United States.
The company processes more than 100,000 metals including aluminum, steels, copper, and titanium. Its primary customers include metal fabricators and manufacturers.
Reliance Steel & Aluminum employs more than 14,500 people and has approximately $14.75 billion in total assets.
In 2022, the company had annual revenues of $10.33 Billion.
Their operating margins and free cash flow is well above industry average. With a payout ratio of only 11.70%, leaves the company room to continue growing its dividend over the long term. Therefore, Reliance Steel & Aluminum ranks as our #1 aluminum stock to buy for 2023.
4. Constellium SE (NYSE: CSTM)
- Ticker: CSTM
- Dividend Yield: N/A
- 10-Yr Dividend Growth Rate: N/A
- Payout Frequency: N/A
- Payout Ratio: N/A
- Market Cap: $2.09 Billion
Constellium SE is a European aluminum manufacturer headquartered in Paris, France.
They are a global manufacturer of aluminum rolled products and premium alloys. It primarily services the aerospace, automotive and packaging sectors.
Constellium employs more than 12.500 people and has approximately $5.02 billion in total assets.
In 2022, the company had annual revenues of $8.55 Billion.
Constellium is a global leader of aluminum rolled products. Some of their customers include Mercedes Benz, BMW, Audi, Airbus, Bombardier and Boeing. With growing demand for aluminum products, Constellium is a top aluminum stock to watch in 2023.
5. Century Aluminum (NASDAQ: CENX)
- Ticker: CENX
- Dividend Yield: N/A
- 10-Yr Dividend Growth Rate: N/A
- Payout Frequency: N/A
- Payout Ratio: N/A
- Market Cap: $896 Million
Century Aluminum is an American aluminum producer headquartered in Illinois, United States.
The company has operations in South Carolina, Kentucky, and Iceland. Its primary products include high grade aluminum ore and aluminum alloys. They also own a carbon anode production facility in the Netherlands.
Century Aluminum employs more than 1,900 people and has approximately $1.47 billion in total assets.
In 2022, the company had annual revenues of $2.77 Billion.
Century Aluminum has been around for more than 25 years, and currently owns 4 aluminum smelter plants. Their operations allow them to produce more than 1 million tonnes per annum.
6. Arconic Corporation (NYSE: ARNC)
- Ticker: ARNC
- Dividend Yield: N/A
- 10-Yr Dividend Growth Rate: N/A
- Payout Frequency: N/A
- Payout Ratio: N/A
- Market Cap: $2.55 Billion
Arconic Corporation is an American aluminum manufacturer headquartered in Pennsylvania, United States.
Its primary products include aluminum sheet, plate and extrusions. Their precision engineering and advanced manufacturing processes supply the automotive, aerospace, industrial, packaging and transportation sectors.
Arconic employs more than 11,500 people and has approximately $6.01 billion in total assets.
In 2022, the company had annual revenues of $8.96 Billion.
Arconic Corporation is a spinoff of Alcoa’s bauxite and aluminum operations. Its rolled aluminum products are critical components for sectors in the global economy. With demand for aluminum continuing to rise, Arconic should remain on investors’ radar for 2023.
7. Kaiser Aluminum (NASDAQ: KALU)
- Ticker: KALU
- Dividend Yield: 4.27%
- 10-Yr Dividend Growth Rate: N/A
- Payout Frequency: N/A
- Payout Ratio: N/A
- Market Cap: $1.07 Billion
Kaiser Aluminum is an American aluminum producer headquartered in Tennessee, United States.
Its primary products include fabricated rolled and extruded aluminum products. The company supplies the aerospace, automotive, beverage, food packaging and industrial sectors.
Kaiser Aluminum employs more than 3,900 people and has approximately $2.28 billion in total assets.
In 2022, the company had annual revenues of $3.42 Billion.
Kaiser Aluminum is a leading North American aluminum producer for the food and beverage industry. Their industry wide expertise and extruded aluminum products make them a top aluminum stock for 2023.
Can You Invest In Aluminum ETFs?
Well you might be curious, can you invest in Aluminum ETFs?
There are a variety of metals ETFs that hold aluminum stocks or invest in aluminum futures contracts.
Below we will present the three best aluminum ETFs to consider for 2023!
- iShares U.S. Basic Materials ETF (IYM)
- SPDR S&P Metals and Mining (XME)
- Invesco DB Base Metals Fund (DBB)
Best Aluminum Stocks: Final Takeaway
Aluminum is a key metal used in a variety of different sectors. You can find aluminum in products like fridges, dishwashers, kitchen utensils, cars, and more.
Investing in aluminum stocks might not be for everyone, due to their cyclical nature. However, if you are risk averse and understand the need for this metal then you might want to consider them.
If you want exposure to aluminum, you can also consider precious metal based ETFs with aluminum stocks.
As demand for aluminum will only increase over the next decade, now might be a good time to keep aluminum stocks on your radar.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
