Investors and consumers are facing the worst bout of inflation in over 40 years, and the data from last week was grim indeed. The January 2022 consumer price index rose 0.9% on a seasonally adjusted basis, compared with an 0.5% increase in December. On Tuesday, the producer price index report came in 1% higher in January, and 9.7% over the past year, which is just off a record high.

According to the U.S. Bureau of Labor Statistics, the all-items index rose 7% for the 12 months ending January, the largest 12-month increase since the period ending February 1982. The all items less food and energy index rose 6.0%, the largest 12-month change since the period ending August 1982. The energy index rose 27.0% over the past year, and the food index increased 7.0%.

The question for investors is what to do now. One of the best ideas always has been to seek positions in commodities, and the best area for investors to look at are the top gold miners and royalty companies. We screened our 24/7 Wall St. research universe looking for the top stocks and found eight stocks that are rated Buy, come with very respectable dividends and look like great ideas for worried investors now.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Agnico Eagle Mines

This is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold-mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions, as well as in the United States and Sweden.

The company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983. The stock was crushed as gold sold well off the January highs, and with an inflation surge you can bet many savvy portfolio managers are ready to add back top companies like this.

Shareholders receive a 2.71% dividend. The BofA Securities price target on Agnico Eagle Mines stock is $66, and the consensus target is up at $91.09. Shares closed Tuesday trading at $51.68 apiece.

This is another top gold stock, and it still offers a solid entry point. Barrick Gold Corp. (NYSE: GOLD) and Randgold Resources completed their merger on January 1, 2019. This created the world’s largest gold company in terms of production, reserves and market capitalization.

The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zalda­var, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia.

Barrick also owns gold mines and exploration properties in Africa and gold projects located in South America and North America. It also has a strategic cooperation agreement with Shandong Gold Group.

Barrick Gold stock investors receive a 1.74% dividend yield. BofA Securities has a $27 price target, while the consensus target is $28.41. Tuesday’s closing share price was $20.68.

B2Gold

This is a small-cap gold stock for aggressive investors looking for sector exposure. B2Gold Corp. (NYSE: BTG) is a global, growth-oriented mid-tier gold producer whose primary assets include gold mines located in Nicaragua (La Libertad and El Limon), the Philippines (Masbate) and Namibia (Otjikoto) and Mali (Fekola).

During the third quarter, the company recorded consolidated gold production of 295,723 ounces, up 19% year over year on solid performance across three of its operating mines. B2Gold increased throughput at the Fekola mill and completed the significant waste stripping campaigns at both Fekola and Otjikoto mines. Those mines achieved record quarterly gold production in the third quarter of 2021.

Investors receive a 4.06% dividend. The $5.45 BofA Securities price target is less than the $5.87 consensus target. B2Gold stock closed on Tuesday at $3.94.

This company posted solid earnings and looks to be breaking out of a double top high. Gold Fields Ltd. (NYSE: GFI) operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, West Africa, Australia and Peru.

The company also explores for copper deposits. It holds interests in nine operating mines with an annual gold-equivalent production of approximately 2.24 million ounces, as well as gold mineral reserves of approximately 52.1 million ounces and mineral resources of approximately 116.0 million ounces. Gold Fields was founded in 1887 and is based in Sandton, South Africa.

Investors receive a 2.45% dividend. BMO Capital Markets has set a $15 target price. The consensus target for Gold Fields stock is $12.22, and Tuesday’s final trade at $11.79 was down almost 4% for the day.

Kinross Gold

Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.

The company also is involved in the extraction and processing of gold-containing ores, reclamation of gold-mining properties and the production and sale of silver. The company posted quarterly earnings that were much lower than a year ago but topped the consensus estimates, offering an earnings surprise of 40%.

Shareholders receive a 2.10% dividend. The BofA Securities price target for Kinross Gold stock of $8.85 is less than the $9.75 consensus target but well above Tuesday’s closing price of $5.72.

Newmont

This is one of the largest mining companies and a solid buy for more conservative investors. Newmont Corp. (NYSE: NEM) is engaged in the production of gold.

Its North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in Nevada and Cripple Creek and Victor in Colorado. The South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Australia segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Africa segment consists primarily of Ahafo and Akyem in Ghana.

Shareholders receive a 3.48% dividend. The Newmont stock price target at BofA Securities is $70. The consensus target is all the way up at $98.08, but shares closed on Tuesday at $63.28.

This precious metals royalty stock makes good sense for more conservative investors who are looking to have exposure to the sector. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.

Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, the Lundin Mining Zinkgruvan mine in Sweden, and Glencore’s Antamina and Yauliyacu mines in Peru, and then sells the silver and gold into the open market.

Holders of Wheaton Precious Metals stock are paid a 1.36% dividend. The BofA Securities price target of $56 compares with a $55.23 consensus target and the most recent close at $41.86 a share.

Yamana Gold

This is a smaller market cap gold-mining stock for investors looking to add a higher share count and some inflation protection. Yamana Gold Inc. (NYSE: AUY) is a Toronto-based mining company with operations and development projects in North, South and Central America. The company is focused on growing profitably through the careful management of cost.

Yamana engages in operating mines, development stage projects and exploration and mineral properties, chiefly in Canada, Brazil, Chile and Argentina. The company primarily sells precious metals, including gold, silver and copper. Its principal mining properties comprise the Chapada and Jacobina mines in Brazil, the Canadian Malartic mine in Canada, and the Cerro Moro mine in Argentina and the El Peñón and Minera Florida mines in Chile.

Shareholders receive a 2.72% dividend. Berenberg Bank has a $7.40 price target. The consensus target is $6.34, and Yamana Gold stock closed at $4.41 on Tuesday.

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The SPDR Gold Shares ETF (NYSE: GLD) is perhaps one of the best pure plays on gold for investors. The trust that is the sponsor of the fund holds physical gold bullion as well as some cash. Each share represents one-tenth of an ounce of the price of gold. It should be noted the fund does not pay a dividend.

Proper asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only do they hedge inflation, which could be huge now and over the long term, but they can really help if the market does go into correction or bear market mode, as they tend to trade inverse to markets.

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