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 Newmont Corporation (NYSE:NEM) 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).
A gold mine entry with a conveyor belt transporting minerals from the depths of a shaft.
Newmont Corporation (NYSE:NEM)
Dividend Yield as of February 25: 2.27%
Number of Hedge Fund Holders: 69
Average Upside Potential: 12.15%
Newmont Corporation (NYSE:NEM) ranks 11th on our list of the best dividend stocks for exposure to gold. It is a Colorado-based global mining company focused on gold production and exploration, while also mining copper, silver, zinc, and lead. Newmont and its subsidiary, Newcrest Finance, have paid off $927.75 million in debt by redeeming their 5.30% Notes that were due in 2026. With this move, the company has paid off around $1.4 billion in debt over the past year. The Notes were officially redeemed on February 7, 2025.
In 2024, Newmont Corporation (NYSE:NEM) raked in $2.9 billion in free cash flow, with a record $1.6 billion in Q4, driven by strong gold prices, higher sales, and solid cash flow management. The company returned $2.3 billion to shareholders through dividends and stock buybacks in 2024, kept the balance sheet strong with $3.6 billion in cash, and paid off $1.4 billion in debt, bringing its total debt below $8 billion.
On February 20, Newmont Corporation (NYSE:NEM) declared a quarterly dividend of $0.25 per share. The dividend is distributable on March 27, to shareholders on record as of March 4. NEM offers a dividend yield of 2.27% as of February 25.
Among the hedge funds in Insider Monkey’s Q4 database, Newmont Corporation (NYSE:NEM) was part of 69 public stock portfolios, up from 63 in the prior quarter. William B. Gray’s Orbis Investment Management is a prominent stakeholder of the company, with 5.58 million shares worth $207.7 million.
Overall NEM ranks 11th on our list of the best gold dividend stocks to buy. While we acknowledge the potential of NEM 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 NEM 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.
