There has been no ambiguity from Federal Reserve Chair Jerome Powell. He and the rest of Washington, D.C., over the past year have had to face the music over spiraling inflation and the rampant government spending spree that took inflation to the highest levels in over 40 years. While the searing inflation has fallen from 9.1% down to 6.0% on a year-over-year basis, that decline comes after almost a 5% increase in the federal funds rate over the past year, and there is a good chance we are about to see another 25-basis-point hit.
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The question for investors is what to do now. One of the best ideas has always been to seek positions in commodities, and the best area for investors to look at there is top gold miners and royalty companies. While gold has exploded higher over worries of a financial sector meltdown, it has backed up some, offering investors another chance to grab the glittering bullion.

We screened the BofA Securities gold-mining research universe looking for the top stocks and found six that are rated Buy, have 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 has rallied recently but remains well off 52-week highs printed last year. With ongoing inflation and the threat of continued financial sector issues, you can bet many savvy portfolio managers are ready to add back top companies like this.

Shareholders receive a 3.15% dividend. The BofA Securities price target for Agnico Eagle Mines stock is $58, and the consensus target is $61.66. Shares ended Tuesday trading at $49.47 apiece.

Barrick Gold

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.
Barrick 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.
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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.

Investors receive a 3.11% dividend. BofA Securities has set its price target at $25. Barrick Gold stock has a consensus target of $21.47, and Tuesday’s close at $17.69 was down 3% on 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), 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.

B2Gold stock comes with a 4.45% dividend. BofA Securities has a $4.30 price target, and the consensus target is $5.02. Tuesday’s closing share price was $3.59.

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

The Toronto-based miner announced this week that it has sold all of its Russian assets to Highland Gold Mining, one of the largest gold miners in Russia, for $340 million in cash. The previously announced price was $680 million. “The transaction consideration was adjusted by the parties following review by the recently formed Russian Sub-commission on the Control of Foreign Investments,” Kinross said.

The dividend yield here is 2.91%. The $4.70 BofA Securities price target is less than the $5.18 consensus target. Kinross Gold stock closed on Tuesday at $4.15.

This is one of the largest mining companies and a solid buy for investors who are more conservative. Newmont Corp. (NYSE: NEM) is engaged in the production of gold.
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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 3.43% dividend. Newmont stock has a $62 price objective at BofA Securities. The consensus target is $68.22, and shares closed at $46.60 on Tuesday.

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.

Investors receive a 3.02% dividend. The BofA Securities price target is $48. The consensus target is $52.91. Wheaton Precious Metals stock closed on Tuesday at $45.05.

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The SPDR Gold Trust (NYSE: GLD) exchange-traded fund is perhaps one of the best pure plays on gold for investors. The trust that sponsors the fund holds physical gold bullion, as well as some cash. Each share represents one-tenth of an ounce of the price of gold. Note though that 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 is huge now and could be 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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