24/7 Wall St. Insights
- Gold is hitting all-time highs as investors seek safety in a debt-ridden world.
- Since 2000, gold has had a compounded annual growth rate of 8.8%.
- Take advantage of this incredible free report: Access 2 legendary, high-yield dividend stocks Wall Street loves
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 it’s not typically a tradeable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility.”
The case for gold and its miners is compelling for two reasons. First, gold can serve as a strategic hedge against inflation. Secondly, some top miners extract silver and other essential commodities in industrial applications. Spot gold has exploded to all-time highs above the levels hit in the summer of 2020 and currently trades above the $2,500 level. From a technical perspective, if the fighting in the Middle East expands, the gold market could have a potentially massive breakout.
We screened our 24/7 Wall Street commodity database, looking for the top mining companies that pay dependable (sometimes big) dividends. Three top stocks make the cut, all rated Buy at well-known Wall Street firms, and all three trade at less than $15 per share. Dividend investors also will love this free report.
B2Gold
B2Gold is a Canadian mining company that owns and operates gold mines in Mali, Namibia, and the Philippines.
For those seeking high returns, B2Gold Corp. (NYSE: BTG | BTG Price Prediction) is a compelling choice and pays investors a hefty 6.23% dividend. This small-cap stock offers an exciting opportunity for sector exposure, with the potential for significant returns. The company operates three mines 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 and approximately 19% interest in BeMetals. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland.
Caledonia Mining
Caledonia Mining engages in the exploration, development, and production of gold and other precious metals from its mineral properties.
Investors receive a strong 5.20% dividend, and this stock could be poised to double from current trading levels. Caledonia Mining Corp. PLC (NYSEAmerican: CMCL) primarily operates a gold mine. It also engages in exploring and developing mineral properties for precious metals. The company holds a 64% interest in the Blanket Mine, a gold mine located in Zimbabwe.
It also owns 100% interests in:
- The Maligreen project, a brownfield gold exploration project located in the Gweru mining district in the Zimbabwe Midlands
- The Bilboes, a gold deposit located to the north of Bulawayo, Zimbabwe
- Motapa, a gold exploration property located in Southern Zimbabwe.
The company posted second-quarter solid gross revenues of $50.1 million compared to $37.0 million in the second quarter of 2023 due to higher gold production and a higher gold price.
In addition, the gross profit was $22.9 million, a 109.8% increase from $10.9 million in Q2 2023, due to higher gold revenue and lower production costs.
DRDGold
DRDGold is a gold producer and specialist in the recovery of residue metal from the retreatment of tailings.
While off the radar, this is another small-cap mining gem that pays a strong 5.29% dividend. DRDGold Ltd. (NYSE: DRD) is a mining company that engages in the surface gold tailings retreatment business in South Africa.
It also involved exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGold was formerly known as Durban Roodepoort Deep Limited and changed its name in 2004.
DRDGold is steadfast in its commitment to conducting profitable business that creates value for all stakeholders in the short, medium, and longer term. The company actively seeks synergies between the business’s financial, human, social, and manufactured aspects, demonstrating its dedication to sustainable growth and value creation.
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 help if the market does go into correction or bear market mode, as they tend to trade inversely to markets trading down.
The SPDR Gold Shares ETF (NYSE: GLD) is one of the best pure plays on Gold for investors. The trust that sponsors the fund holds physical gold bullion and some cash. Each share represents one-tenth of an ounce of the price of gold. So that you know, the fund does not pay a dividend.
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