Investors and consumers are facing the worst bout of inflation in over 40 years, and the data from last week was grim indeed. The January 2022 consumer price index rose 0.9% on a seasonally adjusted basis, compared with an 0.5% increase in December. On Tuesday, the producer price index report came in 1% higher in January, and 9.7% over the past year, which is just off a record high.
According to the U.S. Bureau of Labor Statistics, the all-items index rose 7% for the 12 months ending January, the largest 12-month increase since the period ending February 1982. The all items less food and energy index rose 6.0%, the largest 12-month change since the period ending August 1982. The energy index rose 27.0% over the past year, and the food index increased 7.0%.
The question for investors is what to do now. One of the best ideas always has been to seek positions in commodities, and the best area for investors to look at are the top gold miners and royalty companies. We screened our 24/7 Wall St. research universe looking for the top stocks and found eight stocks that are rated Buy, come with very respectable dividends and look like great ideas for worried investors now.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Agnico Eagle Mines
This is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold-mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions, as well as in the United States and Sweden.
The company and its shareholders have full exposure 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 was crushed as gold sold well off the January highs, and with an inflation surge you can bet many savvy portfolio managers are ready to add back top companies like this.
Shareholders receive a 2.71% dividend. The BofA Securities price target on Agnico Eagle Mines stock is $66, and the consensus target is up at $91.09. Shares closed Tuesday trading at $51.68 apiece.
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