1. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 51
Share Price as of June 21: $16.6
Barrick Gold Corporation (NYSE:GOLD) tops our list of the best dividend stocks under $25. It is one of the largest gold mining companies in the world, headquartered in Canada. The gold prices in the US have been fluctuating over the past month or so as investors await key US inflation data, which could provide new insights into the timing of potential interest rate cuts by the Fed. However, according to analysts, gold prices are expected to rise further, primarily driven by geopolitical tensions and high interest rates, which create a favorable environment for gold mining companies. This is beneficial for companies like Barrick Gold Corporation (NYSE:GOLD), which excel under such conditions.
What makes Barrick Gold Corporation (NYSE:GOLD) stand out from other precious metals companies is its emphasis on Tier One mining assets. These mines consistently produce low-cost gold and copper, ensuring profitability even when the prices are low. The company is capable of identifying new Tier One assets and recognizing the potential for existing assets to achieve Tier One status. The strong cash flow from the company’s Tier One mines allows the company to offers an appealing base dividend, supplemented by a quarterly performance dividend that varies based on its cash reserves.
On May 1, Barrick Gold Corporation (NYSE:GOLD) declared a quarterly dividend of $0.10 per share, which was in line with its previous dividend. Earlier this year, the company also announced a $1 billion share repurchase program. As of June 21, the stock has a dividend yield of 2.39%.
Ariel Investments mentioned Barrick Gold Corporation (NYSE:GOLD) in its Q1 2024 investor letter. Here is what the firm said:
“Lastly, gold mining company, Barrick Gold Corporation (NYSE:GOLD) fell in the period. Although GOLD delivered in-line earnings results, as higher prices offset lower gold and copper volumes as well as increased costs, investors were disappointed with management’s outlook for full year 2024. GOLD guided to flat production year-over-year driven by lower-than-expected output due to a delayed permit at the Nevada Gold Mines and mechanical issues at Pueblo Viejo. Management remains laser focused on upgrading its mining operations and broadly improving efficiencies amid today’s rising prices for precious metals. The company also continues to prioritize capital returns to shareholders via dividends and a recently announced share repurchase program.”
Barrick Gold Corp (NYSE:GOLD) remained popular among elite funds at the end of Q1 2024, with hedge fund positions growing to 51, from 43 in the previous quarter, as per Insider Monkey’s database. The collective value of these stakes is roughly $630 million.
While we acknowledge the potential of GOLD as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than GOLD but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
