We recently published a list of Top 10 Gold Stocks with Dividends. In this article, we are going to take a look at where Wheaton Precious Metals Corp. (NYSE:WPM) 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 representation of gold bars, highlighting the companies success in their gold industry.
Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Funds Holders: 36
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the top precious metal streaming companies. Its operations are spread across the Americas and Europe. The company is focused on producing gold, silver, palladium, and cobalt, offering investors exposure to precious metals while avoiding risks associated with traditional mining.
Wheaton Precious Metals Corp. (NYSE:WPM) was able to exceed the expected production of 2024, reporting 633,481 gold equivalent ounces (GEOs) against the expected range of 620,000 GEOs. Such strong performance was enabled by enhanced performance at key assets such as Salobo, which achieved record production in Q4. In 2025, the company expects its production to be between 600,000 and 670,000 GEOs, with the long-term goal forecasted at 870,000 GEOs by 2029. Accordingly, Wheaton is planning to invest in four new assets to contribute to its five-year forecasted growth.
Moreover, the company reported revenue of $313 million for Q4 2024, up by 32.8% year-on-year, made possible due to an increase of 13% in average realized gold equivalent price and a surge of 17% in GEOs sales. The company was able to attain adjusted earnings per share of $0.36, ahead of market expectations. This was an increase of 57% compared to the previous year. Wheaton Precious Metals Corp. (NYSE:WPM) reported a 64.2% year-on-year increase in gold production, up to 113,359 ounces, whereas silver production saw a decrease of 20.6%, down to 4,208 ounces. The company held $546.5 million in cash and a $2 billion undrawn credit facility at the end of 2024, emanating a stable liquidity position.
Additionally, the company reflects a solid hedge against inflation under its strong dividend profile. Wheaton Precious Metals Corp. (NYSE:WPM) declared dividends of around $2.4 billion to date, consistently increasing payouts since 2015. The company paid $0.155 per share in quarterly dividends, with the expected annual dividend to be around $0.62 per share if maintained.
Looking ahead, with a stable production outlook, increasing metal prices, and strong dividend growth, the company is poised for future growth, making it a top pick among the Best Gold Stocks.
Overall, WPM ranks 8th on our list of other top gold stocks with dividends. While we acknowledge the potential of WPM, 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 WPM 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.
