There has always been a degree of scorn from Wall Street and “so-called” investment professionals for those who invested in Gold. Laughed at as “Gold Bugs”, the argument against the precious metal, even though Gold is one of the most significant financial assets in the world, and central banks have been loading up on the commodity, is that typically, it’s not really a tradeable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility”.
The case for gold and gold miners is compelling for two reasons. Firstly, gold can serve as a strategic hedge against inflation. Secondly, some top miners also extract silver and other essential commodities used in industrial applications. Spot gold has exploded above the highs hit in the summer of 2020, and from a technical perspective, the gold market is showing signs of a potential massive breakout higher.
We screened our 24/7 Wall Street commodity database, looking for the top miners and royalty companies that pay dependable (sometimes big) dividends. 6 top stocks make the cut, and all are rated Buy at top Wall Street firms.
Agnico Eagle Mines
Agnico Eagle Mines Limited is a Canadian-based gold producer with operations in Canada, Finland, Australia and Mexico.
This top stock, one of Wall Street’s most preferred North American gold producers, offers a reassuring 2.62% dividend. Agnico Eagle Mines Limited (NYSE: AEM | AEM Price Prediction) is a senior Canadian gold mining company that has consistently produced precious metals since 1957. Its eight mines are strategically located in Canada, Finland, and Mexico, with exploration and development activities spanning the United States and Sweden.
The Company and its shareholders are wholly exposed 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 is breaking through highs set in May of 2023 and could exploded higher.
Barrick Gold
Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries.
This stock, another top contender in the sector, and presents a promising entry point and a 2.47% dividend. Barrick Gold Corporation (NYSE: GOLD) and Randgold Resources completed their merger on Jan. 1, 2019, propelling them to the forefront as 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
- 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 in South America and North America. It has a strategic cooperation agreement with Shandong Gold Group Co. Ltd.
B2Gold
B2Gold Corporation is a Canadian mining company that owns and operates gold mines in Mali, Namibia and the Philippines.
For those seeking high returns, this small-cap gold stock offers an exciting opportunity for sector exposure that pays a massive 6.30% dividend. B2Gold Corp. (NYSE: BTG) is a dynamic gold producer with three mines operating in Mali, the Philippines, and Namibia.
It also operates 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 Corp. and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland.
Franco-Nevada
Franco-Nevada Corporation is a Toronto, Ontario, Canada-based, gold-focused royalty and streaming company.
This off-the-radar play offers numerous ways for investors to make money and pays a slight 1.23% dividend. Franco-Nevada Inc. (NYSE: FNV) is a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally.
It operates through two segments:
- Mining
- Energy segments
The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals, and engages in the sale of crude oil, natural gas, and natural gas liquids.
While the company is one of the leading gold-focused royalty and streaming companies with the largest and most diversified portfolio of cash-flow producing assets, its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Traits that some of the others don’t offer.
Newmont Corporation
Newmont Corporation is the world’s largest gold mining entity.
This is one of the largest mining companies, yielding a solid 2.54% and is a timely buy for more conservative accounts. Newmont Corporation (NYSE: NEM) is a gold producer that engages in the production of gold.
It operates through the following geographical segments:
- North America
- South America
- Nevada
- Australia
- Africa
The North American segment consists primarily of:
- Carlin, phoenix, twin creeks, and long canyon in the state of Nevada
- Cripple Creek and Victor in the state of Colorado
The South American segment consists primarily of Yanacocha in Peru and Merian in Suriname.
The Australia segment consists mainly of Australia’s Boddington, Tanami, and Kalgoorlie.
The Africa segment consists primarily of Ahafo and Akyem in Ghana.
Wheaton Precious Metals
Wheaton Precious Metals Corp. is a Canadian multinational precious metals streaming company.
This precious metals company makes good sense for more conservative accounts looking to have exposure to the sector and pays a 1.24% dividend. Wheaton Precious Metals (NYSE: WPM) is a Canadian-based precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.
Under long-term contracts, the company purchases silver and gold from various mines, including:
- Goldcorp’s Penasquito mine in Mexico,
- Vale’s Salobo mine in Brazil,
- Lundin Mining Zinkgruvan mine in Sweden, and
- Glencore’s Antamina and Yauliyacu mines in Peru, and
Wheaton Precious Metals then sells the silver and gold into the open market.
The SPDR Gold Shares ETF (NYSE: GLD) 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. It should be noted 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 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 inversely to markets trading down.
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