10 Best Gold Stocks to Invest in for Portfolio Diversification

5. Franco-Nevada Corporation (NYSE:FNV)

Number of Hedge Fund Holders: 32

Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. It manages a portfolio focusing on precious metals, such as gold, silver, and platinum group metals. It also sells crude oil, natural gas, and natural gas liquids through a third-party marketing agent. While the company generates 75% of its revenue from gold and other precious metals, its competitive edge stems from its focus on royalties and streaming, reducing its risk exposure.

Consequently, gold companies do not face capital and operating cost overruns that plague mining companies. Therefore, it benefits from its mining partners doing the hard work in the exploration and production of gold. Royalties and streaming businesses function as specialized lenders, giving gold mining firms up-front funding for asset development.

Franco-Nevada Corporation (NYSE:FNV) has 432 projects in its portfolio, of which 118 are in production, 38 are in the advanced stage of development, and 276 are in the exploration stage. Likewise, streaming and royalty contracts expose it to a reliable and consistent cash stream that enables it to invest in new deals and pay dividends. The company has rewarded investors with dividends since going public in 2008. Its yield currently stands at 1.06%.