We recently published a list of Top 10 Gold Stocks with Dividends. In this article, we are going to take a look at where Barrick Gold Corporation (NYSE:GOLD) stands against other top gold stocks with dividends.
Gold’s performance as an asset in 2024 has been immaculate, despite increasing global constraints. The price for it crossed the $2,900 per ounce mark, driven by strong purchasing by the central bank, increased investor demand, and its role as a hedge against economic uncertainties. Gold’s value as a safe haven increased due to inflationary concerns and increasing geopolitical instabilities, gaining interest from retail and institutional investors.
Total gold demand, including over-the-counter (OTC) investments, has reached a record high of 4,974 metric tons in 2024, as per the World Gold Council. This increase was majorly driven by central banks, which contributed over 1,000 metric tons of gold to the demand for the third consecutive year. Particularly central banks in emerging markets, such as China and India, looked to increase their gold reserves to diversify away from the U.S. dollar. Gold provided an astonishing return of 43.83% for the previous year, significantly above the broader market’s 20.89% gain for the same period.
The investment market for gold has seen major changes, where gold exchange-traded funds (ETFs) reported no major outflows for the first time since 2020, which marks a reversal from previous years of heavy liquidations. Moreover, physical demand for gold has been strong, with purchasing for bar and coins remaining stable at 1,186 metric tons. Technology-driven gold usage has also seen a surge of 7%, driven by the expansion of artificial intelligence and semiconductor industries. These industries rely on gold components for high-performance electronics.
Despite the overall strong performance of the market, gold jewelry demand saw a decrease of 11% in 2024 due to high prices, making it less affordable for consumers. Nevertheless, total spending on gold jewelry in monetary terms increased by 9%, highlighting the overall impact of increasing gold prices. The contrasting situation with lower demand for gold jewelry and high demand for investment highlights the changing role of gold in the global economy.
Market experts and top financial institutions hold a positive outlook on gold’s trajectory for 2025. Goldman Sachs has recently revised its forecast for the gold price to $3,100 per ounce, citing the enhancing accumulation by the central bank and increasing investor interest. Likewise, analysts from J.P. Morgan have projected that gold prices could increase to $3,000 per ounce if macroeconomic instability continues.
Looking ahead, the gold market is being influenced by global monetary policies as well. As per J.P Morgan, major economies like the U.S. and Europe looking to cut down interest rates and lower return on traditional investments will likely drive up the demand for gold. Historically, the opportunity cost of holding gold reduces as traditional investments produce lower yields, increasing prices.
Conclusively, under these circumstances, investment in gold stocks has become a lucrative opportunity for investors looking to gain from the metal’s performance while generating hefty returns through dividends. Gold mining companies with strong financial performance, continual dividends, and major hedge fund backing provide a golden opportunity to enter the sector.
Methodology
To come up with our list of the Best Gold Dividend Stocks to Buy Now, we first recognized companies in the gold sector, offering dividend payments, along with posing strong market capitalizations. We then shortlisted stocks by looking into hedge fund interest, as stocks with strong hedge fund backing often point to stable financials and growth potential.
To rank these stocks, we used Insider Monkey’s Hedge Fund Database as of Q4 2024. The companies were sorted on the basis of the number of hedge funds invested in them, ranking companies with the highest hedge fund interest in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A miner examining yellow gold ore in a mine shaft, symbolizing the company’s exploration process.
Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Funds Holders: 44
Barrick Gold Corporation (NYSE:GOLD) is active in mine developments, exploration, production, and sale of gold and copper properties. The company has an ownership interest in gold mines across the globe, such as the United States, Canada, Argentina, and more, along with copper assets in Zambia, Chile, and Saudi Arabia.
With adjusted net earnings per share climbing by 50% year-over-year to $1.26, Barrick Gold Corporation (NYSE:GOLD) demonstrated a strong performance in Q4 and full-year 2024 ended December 31, 2024. Full-year free cash flow witnessed a twofold increase to $1.3 billion, while EBITDA jumped by 30%. Backed by a strong contribution from Nevada, gold production increased by 15% quarter-over-quarter. Barrick was able to fulfill its production targets for both metals as copper production at Lumwana also achieved record levels.
Moreover, Barrick Gold Corporation (NYSE:GOLD) has declared a quarterly dividend of $0.10 per share for Q4 2024. Its commitment to shareholder returns is demonstrated by its repurchase of 28.675 million shares throughout the year, including 21 million in Q4.
Furthermore, the company reached an aggregate of 89 million ounces of proven and probable reserves by replacing 180% of its annual gold depletion, which added 17.4 million ounces to the total. Owing to the Reko Diq and Lumwana Super Pit Expansion projects, the copper reserves witnessed a 224% rise. Also, Barrick Gold Corporation (NYSE:GOLD) demonstrated the fourth consecutive year of gold reserve replacement at a higher grade, solidifying its focus on organic growth.
With $78 million allotted to 2035, the pre-feasibility study for the Fourmile project is advancing in North America. At Cortez, the company is developing the Robertson open pit project and Hansen extension. With recovery rates anticipated to enhance to 90% by 2026, Pueblo Viejo in Latin America is on the right path to achieve 14 million tons per year of throughput by 2028. Meanwhile, the Reko Diq project has acquired conditional approval for development as its feasibility study has been concluded, setting the company up for robust growth in the coming time.
Fueled by robust financial performance and strategic growth initiatives, the stock has gained 21.47% year-to-date. Barrick Gold Corporation (NYSE:GOLD) maintains a strong position among the Best Gold Stocks to Buy with its key projects such as Reko Diq, Pueblo Viejo, and Fourmile, and its disciplined capital allocation.
Overall, GOLD ranks 3rd on our list of other top gold stocks with dividends. While we acknowledge the potential of GOLD, 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 GOLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
