We recently published a list of Top 10 Gold Stocks with Dividends. In this article, we are going to take a look at where Royal Gold, Inc. (NASDAQ:RGLD) 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 mine entrance, showcasing the precious metals and minerals that this company produces.
Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Funds Holders: 42
Royal Gold, Inc. (NASDAQ:RGLD), manages and secures precious metal streams, royalties, and related interests across the globe, including Australia, the United States, Chile, and other international markets. The company’s core focus lies in gold, nickel, copper, silver, zinc, and other metals, funding projects at multiple stages of production and exploration.
Royal Gold, Inc. (NASDAQ:RGLD) reported record-breaking results, as it delivered $719 million in annual revenue, up by 19% year-over-year, for the year ended December 31, 2024. Net income rose by 39% to $332 million, whereas operating cash flow increased by 27% to $530 million. Adjusted earnings were reported at $346 million, or $5.26 per share. Gold played a significant role in driving this growth by contributing approximately 76% of total revenue.
Moreover, Royal Gold, Inc. (NASDAQ:RGLD) closed the year debt-free with approximately $1.2 billion in available liquidity, maintaining its strong financial position. Further, Royal Gold was able to return over $105 million to shareholders through dividends in 2024 due to this strength. The company’s annual payout was increased to $1.80 per share for 2025 as the board approved a 24th consecutive annual dividend increase, achieving the longest dividend growth streak in the precious metals industry.
With revenue climbing to a record $203 million or 76,100 gold equivalent ounces (GEO), Royal Gold, Inc. (NASDAQ:RGLD) finished the year strongly with Q4. Surging contributions from key royalty and streaming assets, including Penasquito and Cortez, fueled this strong quarter. Moreover, the company solidified its long-term cash flow potential by broadening its portfolio with a strategic acquisition of a 2.5% royalty on the Cactus copper project in Arizona for $55 million.
Meanwhile, strong financial performance and increasing investor confidence are reflected by Royal Gold’s share price, which has increased by 16.95% year-to-date. Key growth catalysts include throughput expansion at Pueblo Viejo and the boosting of Goldrush, together with feasibility studies on the Comacao expansion and Mount Milligan’s life extension.
Therefore, the company maintains a strong position for continued growth with a disciplined capital allocation strategy and a high-margin business. As such, RGLD is one of the best gold stocks.
Overall, RGLD ranks 4th on our list of other top gold stocks with dividends. While we acknowledge the potential of RGLD, 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 RGLD 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.
