In this article, we discuss 10 gold stocks that pay dividends. If you want to read about some more gold stocks that pay dividends, go see 5 Gold Stocks that Pay Dividends.
On May 11, the United States Department of Labor released consumer price data for the month of April, revealing that the consumer price index had risen by 0.3% over the period, the smallest gain registered since August 2021. The numbers indicated that inflation may have peaked and was headed in the opposite direction, serving to cool the concerns around a more aggressive rate hike by the central bank. Gold prices were up slightly after the data was made public, with spot gold up 0.8% to $1,852.15 per ounce as gold futures gained 0.7% to $1,852.80.
Gold is generally considered the safest inflation hedge, but this reputation has been challenged in recent years as high-tech alternatives like Bitcoin or inflation-resistant growth stocks hold their own during periods of economic crisis. Market experts are still skeptical that these alternatives can carry the weight that gold does in a recession. Phillip Streible, the chief market strategist at Blue Line Futures in Chicago, told CNBC on May 11 that he would “much rather own gold than NASDAQ or Bitcoin” in the present market.
In addition to providing cover against a crisis, investments in gold stocks make sense from a dividend perspective as well. Some of the top gold stocks that pay dividends include Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Freeport-McMoRan Inc. (NYSE:FCX).
Our Methodology
The companies that operate in the gold sector and pay dividends were selected for the list. The business fundamentals and analyst ratings for these firms are also discussed to provide readers with some additional context for their investment choices. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in Q4 2021 was used to quantify the hedge fund sentiment around each stock.
Gold Stocks that Pay Dividends
10. Gold Resource Corporation (NYSE:GORO)
Number of Hedge Fund Holders: 11
Dividend Yield as of May 12: 2.19%
Gold Resource Corporation (NYSE:GORO) develops and produces gold and silver projects. The stock, priced modestly at $1.82 per share as of May 12, is one of the strongest dividend players in the gold universe, with a history of consistent payouts stretching back over a decade. In the past five years, these dividend payments have been steadily growing as well. On April 29, the company declared a quarterly dividend of $0.01 per share, in line with previous. The dividend is payable to shareholders by late June.
On May 9, Gold Resource Corporation (NYSE:GORO) posted earnings for the first quarter of 2022, reporting earnings per share of $0.05 and a revenue of more than $45 million, up over 66% compared to the revenue over the same period last year.
At the end of the fourth quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $5.1 million in Gold Resource Corporation (NYSE:GORO), up from 10 in the previous quarter worth $5.6 million.
Just like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Freeport-McMoRan Inc. (NYSE:FCX), Gold Resource Corporation (NYSE:GORO) is one of the gold stocks on the radar of elite investors as inflation rises.
9. Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 19
Dividend Yield as of May 12: 0.71%
Hecla Mining Company (NYSE:HL) is a precious metals mining firm. The company has an impressive dividend history stretching back eleven years. In the past two years, the company has steadily grown the dividend payout. The sector median in this regard is just one year. On May 10, the firm declared a quarterly dividend of $0.0063 per share, in line with previous. The firm disclosed that $0.00375 per share was the minimum dividend component and $0.0025 per share was for the silver-linked component.
On May 11, Roth Capital analyst Joe Reagor upgraded Hecla Mining Company (NYSE:HL) stock to Buy from Neutral but lowered the price target to $6.25 from $6.50, noting that the firm had posted earnings below expectations but the valuation presented a buying opportunity.
At the end of the fourth quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $128 million in Hecla Mining Company (NYSE:HL), up from 15 in the preceding quarter worth $101 million.
8. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Holders: 28
Dividend Yield as of May 12: 1.19%
Royal Gold, Inc. (NASDAQ:RGLD) purchases and manages precious metal streams, royalties, and related interests. The company posted earnings for the first fiscal quarter on May 4, reporting earnings per share of $1.00, beating market estimates by $0.04. The revenue over the period was $162 million, beating analysts’ estimates by $6.4 million. The firm disclosed that it had generated 71% of the revenue from gold, 10% from silver, and 14% from copper. The production volume in the quarter was up 9% year-on-year.
On April 21, Barclays analyst Matthew Murphy kept an Equal Weight rating on Royal Gold, Inc. (NASDAQ:RGLD) stock and raised the price target to $128 from $122, noting that the gold geopolitical premium was getting a boost from recession fears.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Royal Gold, Inc. (NASDAQ:RGLD), with 3.5 million shares worth more than $369 million.
In its Q1 2021 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and Royal Gold, Inc. (NASDAQ:RGLD) was one of them. Here is what the fund said:
“Gold royalties business achieve 2 objectives for us: 1) It’s a good business model with strong returns through the gold price cycle; and 2) it provides some protection from inflation, should it materialize due to the increasingly loose fiscal and monetary policy decisions the United States (and other developed market economies) is making.
I don’t want to stay on my soapbox for too long, but this is the first time in history that I’m aware of politicians openly stating that debt levels don’t matter, even in the long term. In 2019, the government spent $4.4 trillion. Of those expenditures, $0.4 trillion was spent making interest payments on existing debt at the time of $16.9 trillion. The interest rate on that debt was 2.4%. Debt for 2021 is projected to increase to $22.5 trillion, and then to $33 trillion by the end of the decade.
I don’t have a crystal ball, but if interest rates increased to previously “normal” levels of only 5%, U.S. interest payments would be over $1.1 billion in 2021, 25% of U.S. total expenditures in 2019. In the event that happens, there are a few choices: 1) run a larger deficit which could lead to accelerating debt levels; 2) reduce government spending on things like the military, Medicare, Social Security, pensions, and other programs; or 3) the government allows or encourages inflation to reduce the value of its debt obligations. (Click here to see full text)
7. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 22
Dividend Yield as of May 12: 12.30%
Rio Tinto Group (NYSE:RIO) is a diversified metals and mining firm. On April 7, the company announced that it would be taking full control over an alumina refinery in Australia that it owns in partnership with United Company Rusal, a Russian firm. The Australian government has sanctioned Russian businesses in the country in the wake of the Ukraine war. With Rio taking control, the Russian firm has been deprived of a key source of raw material required to produce aluminum, one of the most important metals for the weapons industry.
On April 20, Citi analyst Ephrem Ravi upgraded Rio Tinto Group (NYSE:RIO) stock to Buy from Neutral and raised the price target to GBP 70 from GBP 59, noting that despite “softer” production numbers, the firm had maintained 2022 guidance on production and costs recently.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Rio Tinto Group (NYSE:RIO), with 13.5 million shares worth more than $907 million.
6. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 24
Dividend Yield as of May 12: 1.52%
Wheaton Precious Metals Corp. (NYSE:WPM) is a Canada-based firm that sells precious metals. The company has been consistently paying a dividend to shareholders for the past ten years. Over the last six of these years, the payouts have registered a healthy growth as well. On May 5, the firm declared a quarterly dividend of $0.15 per share, in line with previous. The company also beat market expectations on earnings per share for the first quarter of 2022 by $0.01. The revenue over the period was $307 million.
On April 21, Barclays analyst Matthew Murphy maintained an Equal Weight rating on Wheaton Precious Metals Corp. (NYSE:WPM) and raised the price target to $49 from $45, underlining that the “broad commodity tape has been supportive for the resource equities”.
At the end of the fourth quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $490 million in Wheaton Precious Metals Corp. (NYSE:WPM), compared to 27 in the previous quarter worth $347 million.
In addition to Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Freeport-McMoRan Inc. (NYSE:FCX), Wheaton Precious Metals Corp. (NYSE:WPM) is one of the gold stocks that hedge funds are buying as interest rates rise.
Click to continue reading and see 5 Gold Stocks that Pay Dividends.
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Disclosure. None. 10 Gold Stocks that Pay Dividends is originally published on Insider Monkey.
