We recently compiled a list of the 13 Best Gold Dividend Stocks To Buy According To Analysts. In this article, we are going to take a look at where Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) stands against the other gold dividend stocks.
Gold had a standout year in 2024, arguably its best run in over a decade. The surge was mainly driven by big investors and central banks buying up gold, even as everyday consumer demand slows down. Investors in Asia have been steadily adding to their gold holdings, and in the West, falling interest rates and a weaker US dollar have also made gold more attractive. But the real reason behind its strong performance? Rising market uncertainty and geopolitical tensions have made gold a go-to safe haven.
Adrian Ash, research director at BullionVault, joined CNBC on January 6, 2025 and discussed gold’s importance as a safe-haven asset during uncertain times:
“Investors are optimistic about gold and silver for 2025 because they are so pessimistic on geopolitics and government debt,”
JPMorgan analysts believe gold prices could rise further, especially if American policies become more unpredictable with higher tariffs, trade disputes, and economic instability. Both BullionVault and JPMorgan expect gold to hit $3,000 per ounce in 2025. Silver may also see gains due to robust demand in solar panels, electronics, and AI technology, though its growth depends on global industrial demand. Meanwhile, copper prices may cool after recent highs, and iron ore could face declines due to oversupply linked to Chinese policies and geopolitics.
On February 18, 2025, Goldman Sachs raised its gold price prediction for the end of 2025 to $3,100 per ounce, up from $2,890, mainly because central banks are consistently buying more gold. They believe this strong demand, combined with more investment in gold ETFs as interest rates decline, will push prices higher. If global trade tensions continue, gold could soar even higher, possibly reaching $3,300 per ounce as investors seek safety. However, if the Federal Reserve keeps interest rates steady instead of slashing them, gold might settle at around $3,060 per ounce. Despite this, Goldman is sticking with its “Go for Gold” strategy, saying gold is still a smart investment to protect against risks like economic slowdowns, trade disputes, and rising US debt concerns.
Our Methodology
For this article, we used the Finviz stock screener to filter out dividend paying gold stocks. We then checked the price target. Next, we manually searched for the average upside potential of each stock and selected 13 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of February 25. We have also mentioned the hedge fund sentiment as of Q4 2024.
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).
Drills extracting gold from a gold mine, revealing the company’s gold mining operation.
Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL)
Dividend Yield as of February 25: 5.36%
Number of Hedge Fund Holders: 7
Average Upside Potential: 33.97%
Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) is a gold mining company that was founded in 1992 and headquartered in Saint Helier, Jersey. Caledonia Mining’s CEO, Mark Learmonth, bought 2,047 shares at £8.30 each on December 6, 2024. With this purchase, he owns a total of 187,031 shares, giving him a 0.97% stake in the company. Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) is one of the best dividend stocks to invest in.
Caledonia Mining had a good year at its Blanket Mine, producing 76,656 ounces of gold in 2024, slightly surpassing last year’s numbers and staying within the forecasted range. Q4 production came in at 19,841 ounces, given strong mine activity, with a record 797,000 tonnes milled over the year. For the year, 76,271 ounces were sold, including 17,734 ounces in Q4. On November 11, Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL) declared a quarterly dividend of $0.14 per share. The dividend was paid on December 6, 2024. The company has consistently paid quarterly dividends since 2012, making it a reliable dividend payer.
According to Insider Monkey’s Q4 data, 7 hedge funds were bullish on Caledonia Mining Corporation Plc (NYSEAMERICAN:CMCL), compared to 9 funds in the earlier quarter. William B. Gray’s Orbis Investment Management is the biggest stakeholder of the company, with 782,501 shares worth $7.3 million.
Overall CMCL ranks 2nd on our list of the best gold dividend stocks to buy. While we acknowledge the potential of CMCL as an investment, 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 CMCL 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.
Disclosure: None. This article is originally published at Insider Monkey.
