There has always been a degree of scorn from Wall Street and so-called investment professionals over the years 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 is not typically a tradeable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility.”
We screened our 24/7 Wall St. commodity database to identify the top mining companies that pay dependable, and sometimes substantial, dividends. Four top stocks make the cut, all rated Buy at top Wall Street firms.
Why do we cover gold-mining stocks?
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 surged to all-time highs, surpassing the levels reached in 2020. From a technical perspective, the gold market appears poised for a potential massive breakout, particularly if the ongoing conflicts in the Middle East and Ukraine persist or escalate, and trade becomes a more significant issue.
Agnico Eagle Mines
This top stock is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM | AEM Price Prediction) is a Canada-based and led senior gold-mining company engaged in producing precious metals from operations in Canada, Australia, Finland, and Mexico, with a pipeline of exploration and development projects.
Its operations include:
- Canadian Malartic Complex
- Detour Lake
- Fosterville
- Goldex
- Kittila
- La India
- LaRonde Complex
- Macassa
- Meadowbank Complex
- Meliadine
- Pinos Altos
Its exploration sites include Barsele, Delta, Dubuisson, El Barqueno, Hammond Reef, Hope Bay, Jennings, Morelos Sur, North Madsen, Northern Territory, Pandora/Wood-Pandora, and others.
The Canadian Malartic complex is located in the town of Malartic, 25 kilometers (km) west of Val-d’Or in northwestern Quebec.
The Fosterville mine is a high-grade, low-cost underground gold mine, located 20 km from the city of Bendigo.
It also owns a 100% interest in all its properties (128,680 hectares) in the province of Quebec. Its projects also include Marban Alliance, Horizon, Alpha, Launay, Peacock, and others.
TD Securities has a Buy rating with a $106 target price.
Barrick Gold
This stock is another top contender in the industry, and it offers a very promising entry point. Barrick Gold Corp. (NYSE: GOLD) is a Canada-based gold and copper producer that is also engaged in related activities, such as exploration and mine development.
It has ownership interests in producing gold mines that are located in:
- Argentina
- Canada
- Cote d’Ivoire
- Democratic Republic of the Congo
- Dominican Republic
- Mali
- Tanzania
- United States
It holds ownership interests in copper mines in Chile, Saudi Arabia, and Zambia.
Its operations include:
- Nevada Gold Mines
- Bulyanhulu
- Hemlo
- Jabal Sayid
- Kibali
- Loulo-Gounkoto
- Lumwana
- North Mara
- Porgera
- Pueblo Viejo
- Tongon
- Veladero
- Zaldivar
Its Bulyanhulu operation is located in northwest Tanzania, approximately 55 kilometers south of Lake Victoria and 150 km southwest of the city of Mwanza.
The Hemlo operation is located north of Lake Superior on the Trans-Canada Highway, approximately 35 km east of Marathon, Ontario, and it is an underground operation.
Raymond James has an Outperform rating with a $24 target price objective.
DRDGOLD
While off-the-radar, this is a small-cap mining gem. DRDGOLD Ltd. (NYSE: DRD) is a gold-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. DRDGOLD was formerly known as Durban Roodepoort Deep Limited and changed its name in 2004.
DRDGOLD Limited 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.
H.C. Wainwright has a Buy rating with a $16.25 target price objective.
Newmont
This is the largest mining company we cover 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.
The Australian operations include Boddington, Cadia, and Tanami.
The Latin America and Caribbean operations include:
- Cerro Negro
- Merian
- Penasquito
- Pueblo Viejo JV
- Yanacocha
Its 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 located in the Ahafo region, approximately 290 kilometers northwest of Accra, the national capital.
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 $59 target.
Bonus: A Gold ETF
Proper asset allocation should always include a single-digit percentage holding of precious metals, such as gold and silver. Not only do they hedge against inflation, which could be significant now and in the long term, but they can also be invaluable if the market enters a 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 for gold 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. However, the fund does not pay a dividend.
Why J.P. Morgan’s High-Yield Dividend ETF Is the Safest Way to Stay Invested Now
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