In this article, we will be taking a look at the 10 best gold stocks with dividends.
Gold, with its average daily trading volume of $183 billion as of this September, is among the most popular financial assets available to investors. According to CNBC, gold was only worth about $460 an ounce in 2000. Comparatively, its value as recorded in August 2021 was $1,815 an ounce, showcasing an immense increase in price. As such, gold stocks can offer investors gains and profits, much like strong dividend stocks like Medtronic plc (NYSE:MDT), McDonald’s Corporation (NYSE:MCD), Johnson & Johnson (NYSE:JNJ), and AT&T Inc. (NYSE:T).
Come the COVID-19 pandemic, gold did take a noticeable hit. However, the future for the asset seems not so bleak, as mentioned by Reuters in their analysis on gold and its outlook. Using their web-based valuation tool, QaurumSM, Reuters analyzed hypothetical scenarios on the basis of Oxford Economic research. It was ascertained that while gold and investment in gold will not be risk-free entirely, in the coming time period, there do still exist opportunities in the gold trade, particularly an upside potential for gold in FY 2021.
Reuters’ analysis also sheds light on the fact that holding assets such as gold may become essential in the future, particularly for downside protection and diversification. In 2021, it was noted that apart from individual and institutional investors, central banks also increased their allocation to gold, with Reuters claiming that they can be expected to continue on this path in the coming month. History also offers a favorable picture of gold’s performance in the face of inflation. At times when the US Consumer Price Index (CPI) was above 3%, for instance, the average annual return for gold was 15%.
Without further ado, let’s take a look at the 10 best gold stocks with dividends.
Our Methodology
Using Insider Monkey’s data on 873 hedge funds, we have compiled a list of dividend-paying gold stocks popular among hedge funds this year. We have ranked the stocks on the basis of dividend yield, from lowest to highest. We have also considered analyst ratings, ensuring the stocks added to our list have mostly positive ratings.
Insider Monkey’s research shows why hedge fund data is valuable. It was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best Gold Stocks with Dividends
10. Royal Gold, Inc (NASDAQ:RGLD)
Number of Hedge Fund Holders: 20
Dividend Yield: 1.2%
Royal Gold, Inc (NASDAQ:RGLD) is a materials company that acquires and manages precious metal streams and royalties. The company focuses on financing projects concerning gold, silver, copper, nickel, zinc, lead, and cobalt. It ranks 10th on our list of best gold stocks with dividends.
This September, Adam Josephson at KeyBanc initiated coverage of Royal Gold, Inc (NASDAQ:RGLD) with a Sector Weight rating.
By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Royal Gold, Inc (NASDAQ:RGLD) worth roughly $241 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $237 million.
Argosy Investors, in their first-quarter 2021 investor letter, mentioned Royal Gold, Inc (NASDAQ:RGLD). Here’s what they said:
“Gold royalties business achieve 2 objectives for us: 1) It’s a good business model with strong returns through the gold price cycle; and 2) it provides some protection from inflation, should it materialize due to the increasingly loose fiscal and monetary policy decisions the United States (and other developed market economies) is making.
I don’t want to stay on my soapbox for too long, but this is the first time in history that I’m aware of politicians openly stating that debt levels don’t matter, even in the long term. In 2019, the government spent $4.4 trillion. Of those expenditures, $0.4 trillion was spent making interest payments on existing debt at the time of $16.9 trillion. The interest rate on that debt was 2.4%. Debt for 2021 is projected to increase to $22.5 trillion, and then to $33 trillion by the end of the decade.
I don’t have a crystal ball, but if interest rates increased to previously “normal” levels of only 5%, U.S. interest payments would be over $1.1 billion in 2021, 25% of U.S. total expenditures in 2019. In the event that happens, there are a few choices: 1) run a larger deficit which could lead to accelerating debt levels; 2) reduce government spending on things like the military, Medicare, Social Security, pensions, and other programs; or 3) the government allows or encourages inflation to reduce the value of its debt obligations.
To be clear, this spiraling debt outcome currently seems and likely is not happening within the next several years, but the probability of it occurring is not zero and things have changed rapidly before. For that reason, I think an investment in Royal Gold provides some minor insulation against inflation.”
9. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 28
Dividend Yield: 2%
Kinross Gold Corporation (NYSE:KGC) is a Canadian materials company that acquires, explores, and develops gold properties in the US, Russia, Brazil, Chile, Ghana, and Mauritania. The company ranks ninth on our list and is among the best gold stocks with dividends.
In October, Credit Suisse analyst Fahad Tariq reiterated an Outperform rating on Kinross Gold Corporation (NYSE:KGC).
In their second-quarter earnings report, Kinross Gold Corporation (NYSE:KGC) had an EPS of $0.09. The company’s revenue stood at $1 billion, beating the previous quarter’s $989.50 million figure.
According to Insider Monkey’s data on 873 hedge funds, 28 hedge funds held stakes in Kinross Gold Corporation (NYSE:KGC) in the second quarter of 2021, worth about $360 million. Comparatively, 27 hedge funds held stakes in the company in the previous quarter worth $444 million.
8. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 47
Dividend Yield: 2%
Barrick Gold Corporation (NYSE:GOLD), based in Canada, explores, produces, and sells gold and copper properties. The company’s ownership interests lie in producing gold mines in Argentina, Canada, Côte d’Ivoire, and the Democratic Republic of Congo, alongside the Dominican Republic, Mali, Tanzania, and the US. It is one of the best gold stocks with dividends, ranking eighth on our list.
As of this October, Stifel analyst Ingrid Rico holds a Buy rating on shares of Barrick Gold Corporation (NYSE:GOLD).
The company’s earnings history shows that in the third quarter, it had an EPS of $0.24, beating estimates by $0.01. At the same time, its revenue was $2.83 billion.
Out of 873 hedge funds, 47 were tracked to be holding stakes in Barrick Gold Corporation (NYSE:GOLD) in the second quarter of 2021. Alternatively, 49 held stakes in the company in the previous quarter. Their stake values were $1.23 billion and $1.31 billion respectively.
Like Medtronic plc (NYSE:MDT), McDonald’s Corporation (NYSE:MCD), Johnson & Johnson (NYSE:JNJ), and AT&T Inc. (NYSE:T), Barrick Gold Corporation (NYSE:GOLD) is a good stock pick for income investors.
Ariel Investments, an investment management firm, mentioned Barrick Gold Corporation (NYSE:GOLD) in its second-quarter 2021 investor letter. Here’s what they said:
“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”
7. Kirkland Lake Gold Ltd. (NYSE:KL)
Number of Hedge Fund Holders: 22
Dividend Yield: 2%
Next on our list of best gold stocks with dividends is Kirkland Lake Gold Ltd. (NYSE:KL), another materials company based in Canada. The company’s interests lie in the Fosterville Mine in Australia, and the Macassa Mine in Canada, alongside the Detour Lake Mine in Canada as well. It ranks seventh on our list of the best gold stocks with dividends.
This November, Scotiabank’s Ovais Habib reiterated an Outperform rating on shares of Kirkland Lake Gold Ltd. (NYSE:KL).
In their latest quarterly earnings report for the third quarter of 2021, Kirkland Lake Gold Ltd. (NYSE:KL) reported an EPS of $0.91, beating estimates by $0.05. The company’s revenue was $668.29 million, up 4.89% year over year and beating estimates by $36.17 million. Kirkland Lake Gold Ltd. (NYSE:KL) has also gained 7.08% in the past 6 months.
It was noted that in the second quarter of 2021, 22 hedge funds out of 873 held stakes in Kirkland Lake Gold Ltd. (NYSE:KL), worth $391 million.
6. Gold Resource Corporation (NYSE:GORO)
Number of Hedge Fund Holders: 13
Dividend Yield: 2.2%
Gold Resource Corporation (NYSE:GORO) is a US based company operating in the gold industry to explore, develop, produce, and sell gold and silver in Mexico and the US. Ranking sixth on our list, the company is among the best gold stocks with dividends. It is based in Denver, Colorado.
In April, H.C. Wainwright’s Heiko Ihle reiterated a Buy rating on shares of Gold Resource Corporation (NYSE:GORO).
Gold Resource Corporation’s (NYSE:GORO) third-quarter earnings report showed an EPS of $0.02 and a revenue of $17.26 million, up 5.71% year over year.
Looking at Insider Monkey’s hedge fund data, we see that 13 hedge funds held stakes in Gold Resource Corporation (NYSE:GORO) in the second quarter of 2021, worth $13 million. In the previous quarter only six hedge funds held stakes in the company worth about $2.1 million.
Like Medtronic plc (NYSE:MDT), McDonald’s Corporation (NYSE:MCD), Johnson & Johnson (NYSE:JNJ), and AT&T Inc. (NYSE:T), Gold Resource Corporation (NYSE:GORO) is a dividend stock popular among hedge funds today.
5. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 29
Dividend Yield: 2.7%
Agnico Eagle Mines Limited (NYSE:AEM) is another Canadian company engaged in exploring, developing, and producing mineral properties. The company operates in Canada, Sweden, and Finland, and ranks fifth on our list of the best gold stocks with dividends.
In October, RBC Capital analyst Josh Wolfson upgraded shares of Agnico Eagle Mines Limited (NYSE:AEM) from Sector Perform to Outperform.
Agnico Eagle Mines Limited (NYSE:AEM), in their third-quarter earnings report, had an EPS of $0.60, in line with estimates. Their revenue was $974.07 million, beating the previous quarter’s revenue of $966.32 million.
Our data shows that in the second quarter of 2021, 29 hedge funds held stakes in Agnico Eagle Mines Limited (NYSE:AEM) worth $235 million. In the previous quarter, 28 held stakes in the company worth $247 million.
4. AngloGold Ashanti Limited (NYSE:AU)
Number of Hedge Fund Holders: 12
Dividend Yield: 2.8%
AngloGold Ashanti Limited (NYSE:AU), a gold mining company based in South Africa, ranks fourth on our list, being among the best gold stocks with dividends. The company produces not only gold, but also silver, uranium, and sulphuric acid, alongside dóre bars.
This October, RBC Capital’s Tyler Broda reiterated a Sector Perform rating on shares of AngloGold Ashanti Limited (NYSE:AU).
The earnings history for AngloGold Ashanti Limited (NYSE:AU) shows that in its second-quarter report, it had an EPS of $0.38. The company’s revenue was reported at $722 million, up 10.40% year over year and beating the previous quarter’s revenue of $677 million.
In the second quarter of 2021, 12 hedge funds held stakes in AngloGold Ashanti Limited (NYSE:AU), worth about $372 million. Comparatively, in the previous quarter, 14 hedge funds held stakes in the company. The total value of their stakes was $319 million.
3. Yamana Gold Inc. (NYSE:AUY)
Number of Hedge Fund Holders: 16
Dividend Yield: 3%
Yamana Gold Inc. (NYSE:AUY), alongside its subsidiary companies, works as a producer of precious metals. The company has gold and silver production and development stage properties, exploration properties, and land positions in the Americas. It ranks third on our list of the best gold stocks with dividends.
In August, Canaccord analyst Carey MacRury reiterated a Buy rating on shares of Yamana Gold Inc. (NYSE:AUY).
In their latest third-quarter earnings report, Yamana Gold Inc. (NYSE:AUY) had an EPS of $0.04. The company’s revenue was $452.20 million, up 2.91% year over year and beating the previous quarter’s $437.40 million figure.
Yamana Gold Inc. (NYSE:AUY) had about 16 hedge funds holding stakes in it in the second quarter, worth $129 million. The company also had 21 hedge funds holding stakes in it in the previous quarter, worth about $157 million.
2. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Holders: 17
Dividend Yield: 3.13%
Gold Fields Limited (NYSE:GFI), another South African gold producer, is next on our list and ranks second. The company is among the best gold stocks with dividends and has reserves and resources in Chile, South Africa, Ghana, West Africa, Australia, and Peru. It also explores for copper deposits.
In October, RBC Capital analyst Josh Wolfson upgraded Gold Fields Limited (NYSE:GFI) shares from Sector Perform to Outperform.
The company’s second-quarter earnings report showed an EPS of $0.49 beating estimates by $0.02. The company’s revenue was $1.98 billion, up 13.1$ year over year.
Out of 873, 17 hedge funds held stakes in Gold Fields Limited (NYSE:GFI) in the second quarter. Compared to this, in the previous quarter, 15 hedge funds held stakes in the company. The total stake values in each quarter were $301 million and $323 million respectively.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 55
Dividend Yield: 4.01%
Newmont Corporation (NYSE:NEM) is next and last on our list of the best gold stocks with dividends, ranking first. The company explores for copper, silver, zinc, and lead and is based in the US. It also has operations and assets in America, Canada, Mexico, Peru, Suriname, Argentina, Chile, Australia, Ghana, and the Dominican Republic.
As of this October, Credit Suisse holds an Outperform rating on shares of Newmont Corporation (NYSE:NEM) alongside a number of other gold stocks.
The company’s latest third-quarter report shows an EPS of $0.60. Newmont Corporation (NYSE:NEM) also reported a revenue of $2.90 billion.
According to our data, in the second quarter, 55 hedge funds held stakes in Newmont Corporation (NYSE:NEM) worth $1.3 billion. In comparison in the previous quarter, 43 hedge funds held stakes in the company worth $994 million.
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Disclosure: None. 10 Best Gold Stocks with Dividends is originally published on Insider Monkey.
