We recently published a list of Top 10 Gold Stocks with Dividends. In this article, we are going to take a look at where Kinross Gold Corporation (NYSE:KGC) 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).
Aerial shot of a mine entrance, the bedrock of the company’s gold and silver extraction.
Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Funds Holders: 39
Kinross Gold Corporation (NYSE:KGC), a prominent gold producer, specializes in the exploration, acquisition, and development of gold properties across Brazil, Canada, Mauritania, the United States, and Chile.
Kinross, while maintaining cost discipline, generated over 2.1 million gold ounces, delivering a strong performance in 2024. Tasiasts and Paracatu are the company’s flagship operations, contributing to more than half of the total output, while Tasiasts achieved record throughput and production. By taking advantage of its strong operation margins that outplaced gold price increases, Kinross yielded record free cash flow surpassing $1.34 billion. It also set the stage for potential share buybacks in 2025 and solidified its balance sheet by fully repaying its $1 billion long-term loan.
Moreover, Kinross Gold Corporation (NYSE:KGC) declared a quarterly dividend of $0.03 per share, payable on March 20, 2025, reinforcing its commitment to shareholder returns. The company has continually paid a quarterly dividend of $0.03 per share since September 2020, totaling $0.12 per share annually. Kinross has been vigilant in share repurchases, previously canceling 17.6 million shares for $100.2 million under its normal course issuer bid program.
Furthermore, the company is investing in strategic opportunities to fuel its expansion. It has released an announcement of a private placement agreement to acquire 15.41 million shares of Relevant Gold Corp. for $4.62 million. This was announced on February 28, 2025. Kinross Gold Corporation (NYSE:KGC) will possess approximately 19.9% of Relevant Gold’s outstanding shares after this investment. This step aligns with Kinross’s strategy to reinforce its position in the gold exploration industry while assessing future opportunities.
In addition, by reaffirming its guidance of 2 million ounces annually through 2027, Kinross Gold Corporation (NYSE:KGC) preserves a stable outlook. Thus, the company is strongly positioned for future developments, as it has a robust pipeline of projects, including the Great Bear exploration and Red Bird pit development at Bald Mountain, placing it among the best gold stocks to buy.
Overall, KGC ranks 5th on our list of other top gold stocks with dividends. While we acknowledge the potential of KGC, 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 KGC 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
