Investing
Gold Hits All-Time High on Election and Geopolitical Worries: 5 Dividend Stocks to Buy Now
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24/7 Wall St. Insights
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 above the highs hit in the summer of 2020, and from a technical perspective, with the gold market hitting all-time highs, $3000 per ounce looks right around the corner.
With the potential for an expanding war in the Middle East, the ongoing war in Ukraine, and the potential fallout from a disputed U.S. election, the time to add some gold is now. We highlight five stocks that pay solid dividends and are industry leaders that Wall Street loves.
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 the markets.
This top stock, one of Wall Street’s most preferred North American gold producers, offers a 1.85% dividend. Agnico Eagle Mines Ltd. (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 has broken through highs set in May of 2023 and could explode higher.
This stock is another top contender in the sector, and presents a promising entry point and a 1.95% dividend. Barrick Gold Corp. (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:
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.
While off the radar, this is a small-cap mining gem that pays a 1.78% dividend. DRDGold Ltd. (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 was formerly known as Durban Roodepoort Deep and changed its name to in 2004.
DRDGold 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.
This is the largest gold-mining company, yielding a solid 1.744%, and is a timely buy for more conservative investors. Newmont Corp. (NYSE: NEM) operates through the following geographical segments:
The North American segment consists primarily of:
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.
This precious metals company makes good sense for more conservative accounts looking to have exposure to the sector and pays a 1% dividend. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian-based precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.
Under long-term contracts, the company purchases silver and gold from various mines, including:
Wheaton Precious Metals then sells the silver and gold into the open market.
Aside from these top gold stocks, 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.
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