Much of the chatter on Wall Street so far this year has been about the phenomenal rise of Bitcoin. The cryptocurrency has exploded almost 78% higher since the beginning of the year. While great for Gen Z traders, Bitcoin holds little store of value for many investors, and if the electric grid and the internet ever go down, Bitcoin could be in big trouble.
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One asset that has held its value for centuries is gold. It has risen quietly to just below the all-time highs that were printed in 2020 and 2022. One of the best ideas for worried investors has always been to seek positions in commodities, and the best areas for investors to look at are the top gold miners and royalty companies. While gold has exploded higher in 2023 as the worries of a financial sector meltdown have lingered, it has backed up some recently, offering investors another chance to grab the glittering bullion.

This is what Citigroup had to say about the outlook for gold going forward: “We upgrade our 2023 and quarterly baseline bullion price forecast to be more consistent with our published 0-3 month and 6-12 month topside point-price targets of $2,100/oz and $2,300/oz.” Citigroup also noted that investor positioning has lagged the recent move higher. On the macro front, the bank sees lower nominal and real yields, a weak U.S. dollar trend and tail hedge overlays all as supportive for a higher average gold price range going forward.

We screened our 24/7 Wall St. gold mining research universe looking for the top stocks, and the following six are rated Buy, come with 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. It primarily produces and sells gold deposits, as well as explores for silver, zinc and copper deposits.

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, Sweden, Latin America and Australia. Its flagship property comprises 100% owned LaRonde mine located in the Abitibi region of northwestern Quebec.

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.

Shareholders receive a 2.75% dividend. The BofA Securities price target on Agnico Eagle Mines stock is $60, and the consensus target is higher at $62.98. Shares ended Monday trading at $57.49 apiece.

Barrick Gold

This is another top company in the sector, and its stock still offers a very 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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The company also owns gold mines and exploration properties in Africa and gold projects located in South and North America. It also has a strategic cooperation agreement with Shandong Gold Group.

Investors receive a 2.80% dividend yield. BofA Securities has a $27 price target, and the consensus target for Barrick Gold stock is $22.10. On Monday, shares closed at $19.37.

B2Gold

This is a small-cap gold stock for investors who are more aggressive and looking for sector exposure. B2Gold Corp. (NYSE: BTG) operates as a gold producer with three operating mines: the Fekola Mine in Mali, the Masbate Mine in the Philippines and the Otjikoto Mine in Namibia.

The company also has a 25% interest in Calibre Mining and approximately 19% interest in BeMetals. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan and Finland.

B2Gold expects 2023 total gold production guidance between 10,00,000 and 10,80,000 ounces, which includes 60,000 to 70,000 attributable ounces from Calibre. Total consolidated cash operating costs are projected between $670 and $730 per ounce. Total consolidated AISC is anticipated between $1,195 and $1,255 per ounce.

B2Gold stock comes with a 3.73% dividend. The $4.80 BofA Securities price target compares with a $5.87 consensus target and the most recent close at $4.21.

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 recently 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, half of the previously announced price. “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 2.25%. The price target at TD Securities is $6, while the consensus target is $5.53. Kinross Gold stock closed at $5.16 on Monday.

Newmont

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.
Newmont’s 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.
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Shareholders are paid a solid 3.14% dividend. Newmont stock has a $60 price objective at RBC Capital Markets. The consensus is up at $74.88, and the shares closed on Monday at $48.47.

Wheaton Precious Metals

This precious metals royalty stock makes good sense for more conservative investors looking for 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.

Institutional accounts own a stunning 76% of the company. Clearly, the top money managers feel owning a royalty company that basically is a middleman for the purchase and sales of the bullion is a bet they are willing to make for a position in the sector with lower risk.

Wheaton Precious Metals stock investors receive a 1.18% dividend. The BofA Securities price target of $57 is handily higher than the $53.98 consensus target and Monday’s $49.72 closing share price.

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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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