1. DRDGOLD Limited (NYSE:DRD)
Dividend Yield as of February 25: 1.91%
Number of Hedge Fund Holders: 5
Average Upside Potential: 41.92%
DRDGOLD Limited (NYSE:DRD) is a South African gold mining company that focuses on extracting gold from surface mine tailings. The company also sells gold and silver bullion. It ranks 1st on our list of the best gold dividend stocks according to analysts.
DRDGOLD Limited (NYSE:DRD) delivered a solid performance in the past six months, making steady progress toward its Vision 2028 goals. Gold production slightly increased to 2,564 kg, even as its subsidiary Ergo shifted to processing higher-volume, lower-grade sites. The company took full advantage of a 26% surge in gold prices, pushing operating profit up 74% to R1.58 billion. Headline earnings increased 65% to R970.1 million, and cash reserves grew to R661.2 million, with no bank debt.
Supported by this resilient performance, DRDGOLD Limited (NYSE:DRD) declared an interim dividend of 30 SA cents per share for the first half of FY2025 on February 18, 50% higher from last year’s dividend of 20 SA cents. This continues the company’s 18-year streak of paying dividends.
According to Insider Monkey’s Q4 data, DRDGOLD Limited (NYSE:DRD) was part of 5 hedge fund portfolios, compared to 4 in the prior quarter. Jim Simons’ Renaissance Technologies, Israel Englander’s Millennium Management, and Ken Griffin’s Citadel Investment Group were prominent investors in the company.
Overall, DRDGOLD Limited (NYSE:DRD) ranks first on our list of the best gold dividend stocks to buy according to analysts. While we acknowledge the potential of DRD to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DRD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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