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%.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. Access two 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 gold miners is compelling for two reasons. Firstly, 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 above the highs hit in the summer of 2020, and from a technical perspective, with the gold market hitting all-time highs, $3000 per ounce looks right around the corner.

With the potential for an expanding war in the Middle East, the ongoing war in Ukraine, and the potential fallout from a disputed U.S. election, the time to add some gold is now. We highlight five stocks that pay solid dividends and are industry leaders that Wall Street loves.

Why We Cover Gold and Gold Stocks

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 the markets.

Agnico Eagle Mines

This top stock, one of Wall Street’s most preferred North American gold producers, offers a 1.85% dividend. Agnico Eagle Mines Ltd. (NYSE: AEM) 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 has broken through highs set in May of 2023 and could explode higher.

Barrick Gold

This stock is another top contender in the sector, and presents a promising entry point and a 1.95% dividend. Barrick Gold Corp. (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.

DRDGold

While off the radar, this is a small-cap mining gem that pays a 1.78% dividend. DRDGold Ltd. (NYSE: DRD) is a gold-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 and changed its name to in 2004.

DRDGold is steadfast in its commitment to conducting business that is not only profitable but also creates value for all stakeholders in the short, medium, and longer term.

Newmont

This is the largest gold-mining company, yielding a solid 1.744%, and is a timely buy for more conservative investors. Newmont Corp. (NYSE: NEM) 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

This precious metals company makes good sense for more conservative accounts looking to have exposure to the sector and pays a 1% dividend. Wheaton Precious Metals Corp. (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
• Glencore’s Antamina and Yauliyacu mines in Peru

Wheaton Precious Metals then sells the silver and gold into the open market.

One More Thing

Aside from these top gold stocks, 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. It should be noted that the fund does not pay a dividend.

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