Investing

If The Stock Market Crashes 5 Gold Mining Dividend Stocks Could Explode Higher

Lee Jackson

Published: April 15, 2024 6:48 am

There has always been a degree of scorn from Wall Street and “so-called” investment professionals 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’s 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. Firstly, gold can serve as a strategic hedge against inflation. Secondly, some top miners extract silver and other essential commodities in industrial applications. Spot gold has exploded to all-time highs above the levels hit in the summer of 2020. From a technical perspective, the gold market is showing signs of a potential massive breakout higher, especially if the fighting in the Middle East expands. 

We screened our 24/7 Wall Street commodity database, looking for the top mining companies that pay dependable (sometimes big) dividends. 5 top stocks make the cut, all rated Buy at top Wall Street firms.

Agnico Eagle Mines

Source: Public Domain / Wikimedia Commons

This top stock, is one of Wall Street’s most preferred North American gold producers, offers a reassuring 2.62% dividend. Agnico Eagle Mines Limited (NYSE: AEM) is a senior Canadian gold 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 May of 2023 and could explode higher.

Barrick Gold

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This stock, another top contender in the sector, and presents a promising entry point and a 2.47% dividend. Barrick Gold Corporation (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 terms of 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 gold projects in South America and North America. It has a strategic cooperation agreement with Shandong Gold Group Co. Ltd.

B2Gold

Source: Mario Tama / Getty Images

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

DRDGOLD Limited

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While off-the-radar, this is another small-cap mining gem that pays a strong 5.29% dividend. (NYSE: DRD) is a gold mining company that engages in the 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 Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004.

DRDGOLD Limited is steadfast in its commitment to conducting business that is not only profitable but also creates value for all stakeholders in the short-, medium-, and longer-term. The company actively seeks synergies between financial, human, social, nature, and manufactured aspects of the business, demonstrating its dedication to sustainable growth and value creation.

Newmont Corporation

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This is the largest mining company  yielding a solid 2.54%, and is a timely buy for more conservative accounts. Newmont Corporation (NYSE: NEM) is a gold mining giant that engages in the production of gold.

It operates through the following geographical segments:

• North America
• South America
• Nevada
• Australia
• Africa

The North American segment consists primarily of:

• Carlin, phoenix, twin creeks, and long canyon in the state of Nevada
• Cripple Creek and Victor in the state of Colorado

The South American segment consists primarily of Yanacocha in Peru and Merian in Suriname.

The Australia segment consists mainly of Australia’s Boddington, Tanami, and Kalgoorlie.

The Africa segment consists primarily of Ahafo and Akyem in Ghana.

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 trading down.

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 gold bullion and some cash. Each share represents one-tenth of an ounce of the price of gold. It should be noted that the fund does not pay a dividend.