This has proven to be one of the most volatile years since 2018. From the looks of things, it may not get any better until the inflation disaster is sorted out. It could be late fall or even early 2023 before prices slow down. A report from Nomura late last week said that the Federal Reserve may get super aggressive, and we could have the biggest increase in the federal funds rate since 1994, when the benchmark rate went up 250 basis points. They noted the possibility for the Fed to raise rates 50 basis points in May and 75 basis points in June and July is growing.
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One solid idea now is to look at gold and the top gold miners. Goldman Sachs was out last week once again reminding investors to get aggressive with the portfolio hedging commodity:

The combination of strong investment demand, accelerating Central Bank purchases and resilient consumer demand means that a much higher gold price is needed to keep physical gold markets balanced. Moreover, underlying bullish drivers of each of the three categories are set to remain for the rest of the year, meaning that the bullish gold price trend is set to continue. We therefore reiterate our year-end price target of $2500.

We screened the BofA Securities commodity research universe, as the firm has championed the sector and been bullish for some time, looking for gold stocks rated Buy at the firm that also pay reliable dividends. We found eight great companies for investors to consider now to protect portfolios and take advantage of what could be much higher prices for the rest of 2022.

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. It will report earnings this week, on Thursday, so investors looking to buy or add shares may want to put on partial positions now and see how the results come in.

Shareholders receive a 2.68% dividend. The BofA Securities price target of $73 is less than the $90.62 consensus stock. Agnico Eagle stock closed Friday trading at $59.60, down close to 4% on the day.

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.
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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 1.69% dividend yield. BofA Securities has a $27 price target, while the consensus target is $28.41. Friday’s close at $23.73 a share was down over 2% for the day.

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).

The company recently reported that gold production in first quarter of 2022 was 209,365 ounces, including 12,892 ounces of attributable production from Calibre Mining, which was 5% above budget. In addition, consolidated gold revenues for the quarter were $366 million, up 1% year over year, due in part to a higher average realized gold price, which was offset by lower gold ounces sold. In the first quarter, the company sold 195,100 ounces of gold for a very solid $1,874 per ounce.

The company also reported that the total consolidated gold production figure was 5% lower than the prior-year quarter due to the previously planned significant waste stripping campaign, in addition to lower mined ore tonnage at the Fekola mine in the first quarter of 2022, as Fekola Pit continues to be developed.

Investors receive a 3.48% dividend. BofA Securities has set a $5.85 price target on B2Gold stock. The consensus target is in line at $5.87, and shares closed on Friday at $4.49, which was down just over 4% for the day.

Gold Fields

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.
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Investors receive a 2.33% dividend. The $18 BofA Securities target price compares with Gold Fields stock’s consensus target of $16.75. Friday’s final trade was reported at $13.75.

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.

Kinross Gold is also involved in the extraction and processing of gold-containing ores, reclamation of gold mining properties and the production and sale of silver.

Shareholders receive a 2.19% dividend. The Kinross Gold stock has a price target of $7.65 at BofA Securities. The consensus target is $9.75. Friday’s closing price of $5.49 was down over 4% on the day.

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 2.95% dividend. The BofA Securities price objective is $96. The consensus target is up at $106.89. Newmont stock closed on Friday at $74.52.

Wheaton Precious Metals

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.
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Shareholders receive a 1.25% dividend. Wheaton Precious Metals stock has a price target of $56 at BofA Securities but the consensus target is $59.56. The stock closed at $48.10 on Friday.

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.

Yamana Gold stock investors receive a 2.03% dividend. The $6.25 BofA Securities target price is less than the consensus target of $7.19. The shares were last seen trading at $5.91 on Friday.

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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 also really help if the market does go into correction or bear market mode, as they tend to trade inverse to markets. With a market that appears to be ready to head to new 2022 lows, now is the time to consider adding some capital to these outstanding companies.

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