Goldman Sachs Spots One Red-Hot Sector With 5 Likely 2023 Winners Paying Big Dividends


This is one of the largest mining companies and a solid buy for investors who are more conservative and looking to own gold. Newmont Corp. (NYSE: NEM) is engaged in the production of gold.

Its North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in Nevada and Cripple Creek and Victor in Colorado. The South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Australia segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Africa segment consists primarily of Ahafo and Akyem in Ghana.

The dividend yield here is 5.32%. Goldman Sachs has set a $50 price objective. The consensus target for Newmont stock is $64.48, and shares closed on Thursday at $46.41, up 7% on the day.

Rio Tinto

Shares of this mining company could explode higher if the world economy rebounds strongly in 2023. Rio Tinto PLC (NYSE: RIO), the world’s second-largest mining company, has operations in Australia, Africa, the Americas, Europe and Asia. It is the world’s largest producer of aluminum, second largest producer of iron ore, and a top five producer of alumina, uranium, mined copper, export thermal and coking coal, and diamonds.

In addition, Rio Tinto is also involved in alumina production; primary aluminum smelting; bauxite mining; alumina refining; and ilmenite, rutile and zircon mining, as well as the provision of gypsum.

While the company pays dividends semi-annually instead of quarterly, and the current distribution is a massive 11.49%. This mining powerhouse is a solid stock to own, and trading at an incredible 5.58 times earnings and way off the 52-week high, it really makes for a good value idea now.

Rio Tinto stock has a $72.41 price target in U.S. dollars. That compares with a $70.19 consensus target and Thursday’s closing print of $60.81.

The five top companies are in a sector that is expected to continue to have strength in 2023. The reality for investors is that, while inflation will drop as we finish out the year and head into next year, the trailing results of much higher interest rates year-over-year have yet to be seen. We could be in for a rough first half of next year. Adding top commodity stocks now makes sense if that scenario indeed plays out.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.