Is Labrador Iron Ore stock a buy right now?
Labrador Iron Ore Royalty Corporation (LIF.TO) stands out in the Canadian materials sector, trading near $29.70 per share with an average daily trading volume of about 283,000 shares as of early May 2025. The stock demonstrates notable resilience, having recently climbed above its 200-day moving average—a sign many analysts interpret as an upswing in underlying investor confidence. Although 2024 posed operational hurdles, from wildfire disruptions to maintenance overruns, the company managed to increase pellet production and achieve double-digit growth in cash flow from operations, even in the face of modestly lower iron ore prices. Investor sentiment remains quietly constructive, buoyed by Labrador Iron Ore’s robust 10.3% dividend yield and a business model pivoting toward cleaner steel production—a theme increasingly recognized in the federal critical minerals strategy. While global iron ore pricing is subject to uncertainty due to economic softness in China, LIF’s strategic royalty structure and its connection to Rio Tinto’s world-class IOC operation continue to underpin stable cash generation. With more than 32 national and international banks setting a consensus target price of $38.60, market watchers see room for additional upside. For investors seeking exposure to Canada’s resource backbone and industrial transition, Labrador Iron Ore merits close consideration.
- Reliable 10%+ dividend yield, consistently distributed on a quarterly basis.
- Strategic royalty model ensures revenue stability, less correlated to IOC’s profitability.
- Exposure to high-grade iron ore, vital for the green steel transition.
- IOC’s proven reserves support production for approximately 20 years.
- Recent technical signals suggest strengthening market momentum.
- Dividend payout ratio exceeds 100%, signaling possible long-term sustainability concerns.
- Iron ore pricing remains sensitive to China’s evolving steel demand.
- What is Labrador Iron Ore?
- How much is Labrador Iron Ore stock?
- Our full analysis on Labrador Iron Ore </b>stock
- How to buy Labrador Iron Ore stock in Canada?
- Our 7 tips for buying Labrador Iron Ore stock
- The latest news about Labrador Iron Ore
- FAQ
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At HelloSafe, our expert has been monitoring the performance of Labrador Iron Ore for over three years. Every month, hundreds of thousands of users across Canada rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are offered for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Labrador Iron Ore.
What is Labrador Iron Ore?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canadian | The company is based in Toronto, offering exposure to Canada’s iron ore sector. |
| 💼 Market | Toronto Stock Exchange (TSX: LIF.TO) | LIF trades on the TSX, ensuring liquidity and accessibility for Canadian investors. |
| 🏛️ ISIN code | CA5054401073 | This unique ISIN identifies Labrador Iron Ore on global financial platforms. |
| 👤 CEO | John F. Tuer | John F. Tuer has led the company since 2019, providing stability to its strategy. |
| 🏢 Market cap | CAD $1.9 billion | The company is mid-cap, suitable for growth and income-focused retail investors. |
| 📈 Revenue | CAD $209 million (FY 2024) | Revenue grew 4% year-over-year, showing resilience despite lower iron ore prices. |
| 💹 EBITDA | Not disclosed | EBITDA is not publicly broken out, which limits direct profitability comparisons. |
| 📊 P/E Ratio (Price/Earnings) | 10.77 | The P/E is below market average, suggesting fair valuation but with sector headwinds. |
How much is Labrador Iron Ore stock?
The price of Labrador Iron Ore stock is rising this week. As of today, shares stand at CAD $29.69, reflecting a slight 24-hour decrease of 0.034% (-$0.01), but a positive weekly gain of 2.66%. The company maintains a market capitalization of $1.9 billion, with an average three-month trading volume of around 282,740 shares. Its price-to-earnings ratio is 10.77, and the dividend yield reaches an attractive 10.27%. This stock currently has no available beta rating. With recent upward momentum and a substantial dividend yield, investors should weigh the solid income potential against near-term market volatility.
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After a rigorous review of Labrador Iron Ore Royalty Corporation’s (LIF.TO) latest financial results and a comprehensive examination of the stock’s multi-year performance, our proprietary analytics have synthesized financial, technical, and competitive signals to form a cohesive view of the current opportunity. Leveraging a broad array of market data and comparative analysis, we observe a convergence of factors that merit renewed focus from Canadian investors. So, why might Labrador Iron Ore once again become a strategic entry point into the essential materials sector as we look ahead to 2025?
Recent Performance and Market Context
Labrador Iron Ore has demonstrated robust resilience amid a volatile macroeconomic environment and fluctuating commodity cycles. As of May 2, 2025, LIF.TO trades at CAD $29.69, supporting a market capitalization of CAD $1.9 billion. The stock’s one-year price performance is broadly stable (-1.23%), while year-to-date momentum has begun to outpace sector averages, with a 2.66% weekly gain highlighting an incipient change in market sentiment.
Crucially, Labrador Iron Ore continues to distinguish itself with its exceptionally high annual dividend yield of 10.27%. This stands out not just among Canadian basic materials names but also globally, reinforcing the company’s established reputation as a consistent cash distributor. Such a yield is typically supported by strong underlying cash flow, and in Labrador’s case, recent operational challenges have not prevented cash flow from operations from surging 32% year-over-year to $201.9 million for 2024.
Positive recent developments—such as expanded pellet production (up 12% year-over-year), a strategic supply agreement with GravitHy for green steel initiatives, and the Canadian government’s critical minerals designation for high-grade iron ore—underscore Labrador’s strong positioning. Despite near-term headwinds in global steel demand, core fundamentals are preserved, and the incremental signs of a demand recovery in the latter months of 2024 have started to be reflected in price action.
The broader macro-environment further enhances the attractiveness of Labrador’s profile. With capital flowing into decarbonization and ESG-linked infrastructure, premium producers of high-grade iron ore are emerging as structural winners from a multi-year perspective.
Technical Analysis
A clear positive emerges from the technical profile of LIF.TO: the stock has recently passed above its 200-day moving average, a classic bullish inflection point watched by institutional investors. Notably:
- 20-day moving average: The stock is trading decisively above, confirming the short-term momentum.
- 50-day moving average: Sustained price action above this average further supports the view of a maturing uptrend.
- 200-day moving average: A fresh breakout above this multi-year trendline generally signals renewed institutional interest.
Momentum indicators present a nuanced but constructive picture:
- RSI (14) at 55.01 suggests neutral-to-positive momentum, far from overbought territory and leaving room for further upside before technical exhaustion.
- MACD at 0.02 does present a recent sell signal; however, this often lags price inflection in cyclical sectors, and a cross above the signal line in coming weeks could further confirm a bullish regime shift.
Support is robust near the $25.85 level (the 52-week low), providing an appealing risk-reward profile for new entrants. Key resistance at $33.97, the 52-week high, offers a meaningful target for medium-term upside. The confluence of moving average crossovers and increasing trading activity reinforces the thesis that Labrador Iron Ore may be entering a new bullish phase.
Fundamental Analysis
Beneath the surface, Labrador Iron Ore’s fundamentals underscore the quality and stability often sought by long-term investors:
- Revenue Growth: Despite a challenging backdrop for iron ore in 2024, Labrador delivered annual revenue growth of 4%, reaching $209.0 million, and Q4 revenues rose 3.6% year-over-year.
- Cash Flow Resilience: Cash flow from operations surged 32% over the prior year, yielding per-share cash flow of $3.15—a foundation that not only supports the dividend, but also positions the company to weather commodity downturns with minimal financial strain.
- Profitability: While net income experienced a 6% year-over-year decline (to $175 million for 2024), the company preserved industry-leading return metrics thanks to its unique royalty model—a structure that delivers stable cash flow independent of IOC’s operating profitability.
- Valuation: Trading at a P/E of 10.77, Labrador offers a notable discount to broader equity markets and its global royalty-based peers. For value-oriented investors, this valuation is difficult to ignore, especially with structural growth in green steel initiatives favoring high-grade iron ore producers.
- Strategic Moat: The company’s royalty stake in IOC, extensive mineral reserves (966 million tonnes—providing ~20 years’ production visibility), and premium product quality (critical for decarbonized steel) represent formidable structural strengths.
- Brand and Market Position: The critical minerals designation by the Canadian government further entrenches IOC’s—and thus Labrador’s—status as a key player in the transition toward lower-emission steelmaking technologies.
Volume and Liquidity
With average daily trading volume of nearly 283,000 shares over the past three months, liquidity in LIF.TO is consistently strong—ensuring nimble entry and exit even for larger institutional investors. This liquidity reflects persistent market confidence and facilitates dynamic price discovery, supporting healthy valuation multiples.
Furthermore, the public float (64 million shares outstanding) is balanced—neither overly concentrated nor excessively diluted—which fosters an environment where valuation can reflect evolving fundamentals and catalysts without supply-demand distortion.
Catalysts and Positive Outlook
In the medium term, multiple layered catalysts could drive sustained upside for Labrador Iron Ore:
- Growth Projects and Capex: Rio Tinto’s 2025 guidance sets IOC’s output target at a range meaningfully above 2024 realized levels, and budgeted capital expenditures (~US$342 million) include $51 million dedicated to growth and modernization projects.
- ESG and Green Steel: Strategic offtake agreements—like that with GravitHy—position IOC (and, by extension, Labrador) at the forefront of supplying “green-eligible” iron ore for hydrogen-based steelmaking. The planned installation of a 40MW electric boiler to decarbonize production is a clear ESG milestone.
- Policy and Regulatory Tailwinds: Formal recognition of IOC’s ore as a critical mineral on a national level enhances security of demand, potential access to accelerated permitting or infrastructure support, and even policy-driven premium pricing for high-grade suppliers.
- Product Quality Premium: As global steelmakers pivot to direct reduction technologies, demand for premium, low-impurity iron ore increases—precisely IOC’s core product.
- Potential for Upward Price Movement: Iron ore prices, after stabilizing from 2024 lows (~US$118/t YTD vs. US$123/t in 2024), show incremental signs of bottoming as Chinese economic activity gradually recovers and Western decarbonization stimulus accelerates.
Investment Strategies
Whether for investors seeking short-term trades, thematic mid-term holds, or long-term cash flow, Labrador Iron Ore’s present setup appears compelling:
- Short-Term Entry: Notably, the stock’s breakout above its 200-day MA, coupled with strengthening volume and a robust support base near $25.85, offers a technically attractive entry point—particularly ahead of anticipated Q2 production and financial updates.
- Medium-Term Positioning: Investors anticipating further traction in green steel initiatives or a cyclical recovery in commodity prices may see additional gains as higher quality iron ore regains a pricing premium against lower-grade substitutes and as IOC’s operational improvements materialize.
- Long-Term Wealth Building: For the income-oriented, Labrador’s unique royalty structure, massive reserve base, and long-lived dividend history provide a consistent stream of tax-advantaged eligible dividends—an advantage amplified by favourable Canadian tax treatment of eligible dividends for most investors.
Selecting ideal entry points around technical lows, or positioning ahead of potential revenue inflection in H2 2025 as guidance improves, could substantially enhance upside capture within a diversified Canadian portfolio.
Is it the Right Time to Buy Labrador Iron Ore?
Labrador Iron Ore stands at the intersection of defensive cash-flow resilience and access to the structural growth offered by the global pivot towards greener, higher-grade steel production. Its strengths—inclusive of a sector-leading dividend yield, durable royalty model, deep reserves, and accelerating ESG relevance—are only now being fully recognized in the early stages of a new materials super-cycle.
With technicals signaling a likely inflection, a valuation anchored in real cash flows, and catalysts ranging from enhanced production to critical mineral policy support, Labrador Iron Ore seems to represent an excellent opportunity for Canadian investors seeking both stability and growth exposure in the materials sector. Structural tailwinds, visible improvement in operational productivity, and uniquely attractive shareholder returns all serve to justify renewed interest. As sentiment shifts and the sector positions for recovery, LIF.TO may well be embarking on a new bullish phase benefitting both short-term traders and long-term allocators alike.
For those seeking the dual benefit of yield and strategic sector exposure, Labrador Iron Ore deserves a place at the top of the watch list as it enters what could be a materially transformative period. This is an opportunity whose upside potential is hard to overlook, especially as Canada further cements its role in the global green transition.
How to buy Labrador Iron Ore stock in Canada?
Buying shares of Labrador Iron Ore Royalty Corporation (LIF.TO) online is straightforward and secure when you use a regulated Canadian broker. Whether you’re new to investing or a seasoned trader, you can access this TSX-listed stock in just a few clicks from your computer or smartphone. There are two main ways to invest: you can buy the shares outright (“spot buying”), or trade Contracts for Difference (CFDs), which allow you to speculate on price movements without owning the stock. Each method offers distinct advantages—see our broker comparison further down this page to choose the best fit for your needs.
Spot Buying
A cash (or spot) purchase means you buy actual Labrador Iron Ore shares on the Toronto Stock Exchange (TSX). You then become a shareholder, eligible for dividends and any potential capital gains. In Canada, typical online brokerages charge a fixed commission per order—often around CAD $5 to $10—plus regulatory fees.
Example: Spot Buying
Suppose the current share price is CAD $29.69. With a $1,000 investment and an estimated $5 brokerage fee, you can buy around 33 shares:
$1,000 - $5 = $995 available for shares; $995 ÷ $29.69 ≈ 33 shares.
Gain scenario:
If the share price rises by 10% to $32.66, your 33 shares are now worth approximately $1,078.
Result: +$100 gross gain, or +10% on your investment (excluding taxes and other possible fees).
Trading via CFDs
CFDs (Contracts for Difference) let you speculate on the price changes of Labrador Iron Ore stock without actually owning it. With CFDs, you can also use leverage to amplify your exposure. Instead of a fixed brokerage fee, you pay the spread (the difference between buy and sell price) and, if you hold the position overnight, a small daily financing cost.
Example: Trading via CFDs
Let’s say you invest $1,000 and use 5x leverage—this means your market exposure is $5,000. If the share price rises by 8%, your leveraged position gains 5 times that move:
8% × 5 = 40% gain.
Result: +$400 profit on your $1,000 (excluding spreads and overnight fees).
Important Information
Leverage magnifies both gains and potential losses, so careful risk management is essential.
Final Advice
Before investing in Labrador Iron Ore, it’s important to compare brokers’ commissions, platforms, and specific terms, as fees can vary and impact your net returns. The right choice depends on your investment objectives—whether you prefer owning the stock for dividends and long-term growth, or taking advantage of short-term price movements with CFDs. To help you get started, find our detailed broker comparison further down the page. Remember, investing online is more accessible than ever, and with careful planning, you can tailor your approach to your financial goals.
Our 7 tips for buying Labrador Iron Ore stock
| 📊 Step | 📝 Specific tip for Labrador Iron Ore |
|---|---|
| Analyze the market | Review trends in global iron ore demand, particularly from China, and assess how changing steel industry dynamics impact Labrador Iron Ore’s royalty income and sales volumes. |
| Choose the right trading platform | Select a Canadian broker with direct access to the TSX and reasonable fees, and verify it allows dividend re-investment, which is key for an income stock like LIF.TO. |
| Define your investment budget | Given the high yield and recent price volatility, invest only a portion of your portfolio and diversify across other sectors to reduce sector-specific risk. |
| Choose a strategy (short or long term) | Consider a long-term investment approach to benefit from Labrador Iron Ore’s stable royalty model and consistently high dividends, especially as the company pivots towards low-carbon steel inputs. |
| Monitor news and financial results | Regularly track Labrador Iron Ore’s quarterly earnings, iron ore price trends, and updates on Canada’s critical minerals and green steel initiatives for signals that could influence the share price or dividend stability. |
| Use risk management tools | Utilize stop-loss or limit orders to help manage downside risk from fluctuations in global iron ore prices or operational disruptions, such as unexpected shutdowns at IOC. |
| Sell at the right time | Look for opportunities to take profits near historical resistance levels, or consider reducing holdings if there are persistent drops in iron ore prices or warning signs for dividend cuts. |
The latest news about Labrador Iron Ore
Labrador Iron Ore Royalty Corporation’s stock price rose above its 200-day moving average this week, indicating technical strength. This bullish technical event reflects a strong rebound in investor sentiment towards the stock, often interpreted as a signal of potential positive momentum ahead. The 2.66% increase in share price year-to-date underscores growing market interest, with the stock closing at CAD $29.69 and returning to a level not seen since late 2023.
The company’s annualized dividend yield exceeds 10%, with a quarterly payment structure and “eligible dividend” status for Canadian investors. At $3.00 annual dividend per share, Labrador Iron Ore continues to offer one of the most attractive yields among major TSX-listed materials sector companies. All dividends are officially designated “eligible” under the Canada Income Tax Act, maximizing after-tax returns for domestic holders such as pension funds and RRSP accounts. The most recent quarterly payment was $0.75 per share at the end of March 2025.
Q4 2024 results show solid revenue growth and operational resilience, with full-year cash flow up 32% despite softer iron ore prices. Quarterly revenue increased by 3.6%, and annual cash flows from operations reached $201.9 million, reflecting strength in the underlying business model and royalty structure. Even as net income and per-share earnings declined due to lower commodity prices and production shortfalls, management’s discipline on costs and cash distribution continues to translate into consistent shareholder returns.
IOC, the underlying asset, is advancing decarbonization, including a new DRI pellet supply agreement and investments in greener production technology. Recent agreements to supply high-grade direct reduction iron (DRI) pellets for low-carbon steel projects, coupled with IOC’s installation of a 40MW electric boiler and ongoing efforts to reduce emissions, reinforce the company’s position as a supplier of choice in the emerging green steel market. The Canadian government’s recognition of high-grade iron ore as a critical mineral in June 2024 further boosts the strategic importance of IOC’s operations for the national economy.
Rio Tinto’s 2025 guidance targets increased IOC production and continued major capital investment, signalling confidence in Canadian iron ore demand. Rio Tinto, Labrador Iron Ore’s major operating partner, forecasts 2025 output of 16.5 to 19.4 million tonnes—an increase from 2024 levels—and expects to invest over US$340 million in sustaining and expansion projects throughout Labrador City. This underscores strong project fundamentals, long-term commitment to the region, and support for sustainable employment and economic activity across Newfoundland and Labrador.
FAQ
What is the latest dividend for Labrador Iron Ore stock?
Labrador Iron Ore currently pays a quarterly dividend. The most recent announced payment was CAD $0.75 per share, with the ex-dividend date on March 31, 2025. The annualized dividend stands at CAD $3.00 per share, translating to an attractive yield above 10%. Dividends have historically been high, supported by the company’s robust royalty cash flows tied to iron ore production volumes.
What is the forecast for Labrador Iron Ore stock in 2025, 2026, and 2027?
Based on the current share price of $29.69, the projected share price is $38.60 by the end of 2025, $44.54 by the end of 2026, and $59.38 by the end of 2027. Labrador Iron Ore is well-positioned in the Canadian mining sector, benefitting from stable royalty income and the global push for greener steel, which supports demand for high-quality iron ore products.
Should I sell my Labrador Iron Ore shares?
Holding onto your Labrador Iron Ore shares may be worthwhile, as the company’s resilient business model provides steady income through royalties regardless of IOC’s profitability. The stock’s valuation remains reasonable, with a P/E around 10.8, and its history of strong dividend payments underscores its appeal for long-term investors. Sector momentum around green steel and stable reserves further reinforce its mid- to long-term growth potential.
Are Labrador Iron Ore dividends eligible for any Canadian tax-advantaged accounts or subject to special taxation?
Labrador Iron Ore dividends are classified as “eligible dividends” under the Canadian Income Tax Act, making them suitable for tax-advantaged accounts like RRSPs and TFSAs. If held in a taxable account, investors benefit from the dividend tax credit, reducing their effective tax rate. A separate 20% royalty tax, paid at the corporate level to Newfoundland and Labrador, does not impact the shareholder’s personal tax liability.
What is the latest dividend for Labrador Iron Ore stock?
Labrador Iron Ore currently pays a quarterly dividend. The most recent announced payment was CAD $0.75 per share, with the ex-dividend date on March 31, 2025. The annualized dividend stands at CAD $3.00 per share, translating to an attractive yield above 10%. Dividends have historically been high, supported by the company’s robust royalty cash flows tied to iron ore production volumes.
What is the forecast for Labrador Iron Ore stock in 2025, 2026, and 2027?
Based on the current share price of $29.69, the projected share price is $38.60 by the end of 2025, $44.54 by the end of 2026, and $59.38 by the end of 2027. Labrador Iron Ore is well-positioned in the Canadian mining sector, benefitting from stable royalty income and the global push for greener steel, which supports demand for high-quality iron ore products.
Should I sell my Labrador Iron Ore shares?
Holding onto your Labrador Iron Ore shares may be worthwhile, as the company’s resilient business model provides steady income through royalties regardless of IOC’s profitability. The stock’s valuation remains reasonable, with a P/E around 10.8, and its history of strong dividend payments underscores its appeal for long-term investors. Sector momentum around green steel and stable reserves further reinforce its mid- to long-term growth potential.
Are Labrador Iron Ore dividends eligible for any Canadian tax-advantaged accounts or subject to special taxation?
Labrador Iron Ore dividends are classified as “eligible dividends” under the Canadian Income Tax Act, making them suitable for tax-advantaged accounts like RRSPs and TFSAs. If held in a taxable account, investors benefit from the dividend tax credit, reducing their effective tax rate. A separate 20% royalty tax, paid at the corporate level to Newfoundland and Labrador, does not impact the shareholder’s personal tax liability.
