This is one of the largest mining companies and a solid buy for more conservative investors. Newmont Corp. (NYSE: NEM) is a leading gold and copper producer. It employs approximately 29,000 employees and contractors, with the majority working at managed operations in the United States, Australia, Ghana, Peru, Indonesia and Suriname. Newmont is the only gold producer listed in the S&P 500 index.
In recent years, the company announced that “first gold” has been poured at its new mine, called the Merian gold mine in Suriname in South America. Newmont reported Merian contains gold reserves of 5.1 million ounces and that annual production is expected to average between 400,000 and 500,000 ounces of gold at competitive costs during the first five full years of production.
In keeping with its capital return objectives, Newmont announced a 79% hike in its quarterly dividend to $0.25 in February, effective the second quarter of 2020. The company has repurchased 12.4 million shares for $506 million, halfway to achieving its $1 billion share repurchase program. Approaching its centenary, the company has rebranded itself from Newmont Goldcorp to Newmont Corporation.
Shareholders receive a solid 2.66% dividend. The $86.00 BofA Securities price objective was lowered to $80.50, while the posted consensus target price was last seen at $79.57. Newmont stock closed trading at $60.21 on Tuesday.
Wheaton Precious Metals
This precious metals royalty stock makes good sense for more conservative investors looking to have exposure to the sector. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.
Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, the Lundin Mining Zinkgruvan mine in Sweden, and Glencore’s Antamina and Yauliyacu mines in Peru, and then sells the silver and gold into the open market.
Shareholders receive a 1.17% dividend. The BofA Securities price target slipped to $60.00 from $64.50, which is now lower than the $60.73 consensus target. Wheaton Precious Metals stock closed most recently at $40.05 a share, after close to a 5% gain on Tuesday.
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 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 inverse to the markets.