There has always been a degree of scorn from Wall Street and so-called investment professionals over the years for those who invest in gold. They are laughed at as “gold bugs,” even though gold is one of the most significant financial assets in the world and central banks have been loading up on the commodity. The argument against the precious metal is that it is 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. First, gold can serve as a strategic hedge against inflation. Second, some top miners extract silver and other essential commodities for industrial applications. Spot gold has exploded to all-time highs above the levels hit in 2020. From a technical perspective, the gold market shows signs of a potential massive breakout, especially if the fighting in the Middle East and Ukraine continues or expands.

We screened our 24/7 Wall St. commodity database, looking for the top mining companies that pay dependable (sometimes big) dividends. Five top stocks make the cut, all rated Buy at top Wall Street firms.

Agnico Eagle Mines

This top stock is one of Wall Street’s most preferred North American gold producers and offers a 1.60% dividend. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian 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 November of 2020 and could explode higher.

UBS has a Buy rating with a $95 target price.

Barrick Gold

This stock is another top contender in the sector, offering a promising entry point and a 2.53% 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 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 projects in South America and North America. It has a strategic cooperation agreement with Shandong Gold.

TD Securities has a Buy rating to go with a $25 target price.

B2Gold

For those seeking high returns, this small-cap gold stock offers an exciting opportunity for sector exposure and pays a massive 6.23% 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 and approximately 19% interest in BeMetals. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland.

Jefferies has a buy rating and a $5 target.

DRDGOLD

While off the radar, this is another small-cap mining gem that pays a strong 2.46% dividend. DRDGOLD Ltd. (NYSE: DRD) is a mining company that operates a 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. The company 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, natural, and manufactured aspects, demonstrating its dedication to sustainable growth and value creation.

HC Wainwright has a Buy rating with a $13.25 price objective.

Newmont

This is the largest mining company we cover, yielding a solid 2.63%, and is a timely buy for more conservative investors. Newmont Corp. (NYSE: NEM) is a gold company that also produces copper, zinc, lead, and silver.

Its portfolio of assets and prospects is anchored in mining jurisdictions in:

• Africa
• Australia
• Latin America and the Caribbean
• North America
• Papua New Guinea

Its African operation is Ahafo, and the Australian operations include Boddington, Cadia, and Tanami. The Latin America and Caribbean operations include:

• Cerro Negro
• Merian
• Penasquito
• Pueblo Viejo JV
• Yanacocha

North American projects include:

• Brucejack
• Cripple Creek & Victor
• Eleonore
• Musselwhite
• Nevada Gold Mines JV
• Porcupine and Red Chris

The Papua New Guinea projects include Lihir. Its Ahafo mine is in the Ahafo region, approximately 290 kilometers northwest of Accra, the national capital city.

The Boddington mine operates within the Saddleback greenstone belt in Western Australia. Boddington is located 16 km from the rural farming town of Boddington and 130 km from Western Australia’s capital city.

Raymond James has a Buy rating with a $62 target.

Note

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.

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 bullion and some cash. Each share represents one-tenth of an ounce of the price of gold. However, the fund does not pay a dividend.

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