In this article, we discuss the 5 best gold stocks with dividends. To read the detailed analysis of the gold segment, go directly to the 10 Best Gold Stocks with Dividends.
5. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Holders: 24
Dividend Yield as of December 2: 3.02%
Gold Fields Limited (NYSE:GFI) is one of the best gold stocks with dividends. It is a South African company with diversified operations across Africa, Australia, and the Americas. The company recently received $300 million from Yamana Gold Inc. (NYSE:AUY) as an acquisition termination fee.
Gold Fields Limited (NYSE:GFI) provided its operational update for the September quarter on November 3. The company reported 597,000 of gold equivalent production and $1,061 of all-in-sustaining costs. The company generated a revenue of $1.699 billion, excluding the Asanko project where Gold Fields Limited (NYSE:GFI) holds 45% ownership. The management believes that it’s on track to achieve its gold production guidance that was provided at the beginning of the year. Gold Fields Limited (NYSE:GFI) expects its FY 2022 attributable gold equivalent production to be in the range of 2.25 – 2.29 million ounces. These figures do not include the production at the Asanko project.
Gold Fields Limited (NYSE:GFI) pays semi-annual dividends and has a dividend yield of 3.02% as of December 2.
Here is what Baron Funds specifically said about Gold Fields Limited (NYSE:GFI) in its Q2 2022 investor letter:
“Gold Fields Limited (NYSE:GFI) is an established gold producer based in South Africa with a diversified global portfolio of precious metals assets. Shares fell due to the pullback in gold prices and the company’s announced acquisition of gold producer Yamana Gold at a large premium. We are positive on gold prices and expect continuous improvements in Gold Fields’ cash costs. We expect at least 50% production growth over the next decade as the company ramps up volumes, including Yamana’s high-quality development projects in Chile, Canada, and Brazil.”
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 24
Dividend Yield as of December 2: 2.76%
Kinross Gold Corporation (NYSE:KGC) is a gold and silver mining company headquartered in Ontario, Canada. Out of the average annual production of 2 million ounces of gold, 70% of it is produced in North and South America. The company also has operations in Africa.
As of December 2, Kinross Gold Corporation (NYSE:KGC) has a dividend yield of 2.76%. On November 9, the company declared a quarterly dividend of $0.03 payable by December 15 to the shareholders of record on December 1. Kinross Gold Corporation (NYSE:KGC) paid out around $300 million to its shareholders through dividends and share repurchases and expects to pay $450 million by the end of FY2022.
In the third quarter of 2022, 24 hedge funds held Kinross Gold Corporation (NYSE:KGC)’s shares worth $267.037 million compared to 21 hedge funds with shares worth $273.722 million.
3. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 35
Dividend Yield as of December 2: 3.53%
Barrick Gold Corporation (NYSE:GOLD) is a Canadian mining company that primarily focuses on gold and copper. The company produces gold and copper from 16 sites. The company was competing with Newmont Corporation (NYSE:NEM) as the biggest gold-producing company up until 2019. In that year, Newmont made a significant acquisition to solidify its position as the top gold-producing company.
On November 21, RBC Capital analyst Josh Wolfson maintained an Outperform rating on Barrick Gold Corporation (NYSE:GOLD) and lowered the firm’s price target to $20 from $27. Wolfson is underpinning the free cash flow upside for the company after 2025 once its major projects are “completed, capital declines, and production increases”.
As of December 2, Barrick Gold Corporation (NYSE:GOLD) had a dividend yield of 3.53%.
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 39
Dividend Yield as of December 2: 3.09%
Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company operating in Canada, Finland, and Mexico. Apart from gold, the company also produces silver, zinc, and copper. In the third quarter, Agnico Eagle Mines Limited (NYSE:AEM) produced 816,795 ounces of gold, 553,000 ounces of silver, $653 tonnes of copper, and 2.1 billion tonnes of zinc.
Agnico Eagle Mines Limited (NYSE:AEM) has been paying cash dividends since 1983. As of December 2, the company has a 3.09% dividend yield.
In the third quarter, the hedge fund sentiment towards Agnico Eagle Mines Limited (NYSE:AEM) was remarkable with 39 firms taking a bullish position on the company compared to 31 in the previous quarter. In Q3, First Eagle Investment Management moved up a spot to become the most notable shareholder in Agnico Eagle Mines Limited (NYSE:AEM) with 6.19 million shares worth $261.66 million.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 53
Dividend Yield as of December 2: 4.52%
Newmont Corporation (NYSE:NEM) is the largest gold mining company in the world with mines spanning eleven countries and three continents. The company wholly owns eleven mines, has partial ownership in two, and holds a significant chunk of the Merian project in Suriname. In the September quarter, Newmont Corporation (NYSE:NEM) reported all-in-sustaining costs of $1271 per ounce.
Newmont Corporation (NYSE:NEM) was covered by 10 Wall Street analysts with an average price target of $54.16 and a Moderate Buy rating. At the time of writing, the average price target represents an 11.28% upside at a stock price of $48.67.
In the third quarter of 2022, First Eagle Investment Management was the most prominent shareholder of Newmont Corporation (NYSE:NEM) with 17.855 million company shares, worth $750.466 million. D E Shaw came second after increasing its holdings in the company by 5450% to shares worth $143.867 million in the quarter.
Here is what First Eagle Investments had to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:
“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.
It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”
You can also take a peek at 25 Smartest Countries in the World and Jim Cramer’s Dividend Stocks To Buy.
