7 Best Commodity Stocks to Buy on the Dip

The Fed Chair Jerome Powell warned of some pain as the central bank attempts to tackle inflation. Stocks sold off sharply following his remarks at the annual economic symposium at Jackson Hole, Wyo. Astute investors can use this as an opportunity to buy the best commodity stocks on the dip.

Archer-Daniels-Midland (ADM) is a multinational food processing and commodities trading corporation. ADM has 49 consecutive years of dividend increases. Shares are up 32% on a year-to-date basis, but they are down about 3% since Powell spoke.

Bunge (BG) is an agribusiness and food company. Russia's invasion of Ukraine caused significant disruptions to supply chains for several resources, including food. Ukraine is one of the world's top grain exporters. Wheat and specialty ingredients is a core business unit of Bunge.

Albemarle (ALB) is one of the best commodity stocks to buy on the dip. Albemorle provides lithium for batteries. Its shares are down 10% from their 52-high. ALB is not as exciting as individual consumer brands.

Devon Energy (DVN) has outperformed this year, up 66%. Russia’s invasion of Ukraine dealt a massive blow to global energy supplies. Devon enjoyed a significant boost in profitability. The company's operating margin came out to almost 46%, up from 12.4% in the year-ago quarter. Shares are up by 66% year to date, but they have dipped 6% from their highs in recent days.

Cheniere Energy is a leading producer of liquefied natural gas. Cheniere delivered 70% of its export cargoes to Europe during the first half of this year. The company exported 316 LNG cargo c cargo c loads in the last six months. Europe is suffering from the energy disruption brought on by the Russia-Ukraine conflict.

Wheaton Precious Metals (WPM) is down 28% for the year and more than 10% in August. Wheaton specializes in gold and silver mining. It provides upfront financing to mining outfits in exchange for metals production at specified terms.

Denison Mines is a penny stock that specializes in uranium exploration and development. It's up 3% YTD and 34% below its 52-week high. Josh Enomoto recommends Denison to buy on the dip. He does not have any positions in the securities mentioned in this article. The opinions expressed are those of the writer and are subject to the InvestorPlace.com publishing guidelines.