As investors look to 2024 for new market dynamics where the Fed is expected to begin cutting interest rates, gold investors are assessing the situation and evaluating what comes next for the precious metal which always remains relevant. Ben Emons, NewEdge Wealth Sr. Portfolio Manager & Head of Fixed Income, said in a program on CNBC that gold is expected to perform better in 2024 since the precious metal has fared well during periods of easy monetary policies. The analyst also said that risks in the market could fuel gold price in 2024 as investors flock to gold for hedging against inflation and risks. Emons cited the upcoming election and possibility of recession as catalysts for gold price in 2024.
The Netherlands-based financial services company ING Group also said in a report that gold’s rally seen in 2023 fueled by geopolitical risks and uncertainties is expected to continue in 2024. The report said that gold prices rose after war broke out between Hamas and Israel earlier this year but despite the tensions now easing in the Middle East, gold price remains elevated. ING said its economists expect the Federal Reserve to begin slashing interest rates in May 2024. They are expecting 150bp of rate cuts next year in total, with a further 100bp in early 2025. The ING report said these rate cuts would support gold in 2024.
We believe gold prices will be supported going into 2024 amid a weaker US dollar on the back of US monetary easing. The risk of tensions escalating in the Middle East should also provide support to the precious metal. We expect gold prices to hit fresh highs next year and to average $2,100/z in 4Q, with a 2024 average of $2,031/oz on the assumption that the Fed starts cutting rates in the second quarter of next year, the dollar weakens, safe-haven demand continues amid global economic uncertainty and central bank buying remains at high levels. Downside risks revolve around US monetary policy and dollar strength. The higher-for-longer narrative could see a stronger dollar for longer and weaker gold prices. Meanwhile, geopolitical instability offers upside risks for the gold market in 2024.
Methodology
For this article we scanned Insider Monkey’s database of 910 hedge funds and picked 12 dividend-paying gold stocks with the highest number of hedge fund investors. Some top names in the list include Newmont Corporation (NYSE:NEM), Agnico Eagle Mines Ltd (NYSE:AEM) and Barrick Gold Corp (NYSE:GOLD).
A closeup view of a large gold mine, illustrating the company’s gold properties.
12. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Investors: 14
Headquartered in Canada, SSR Mining Inc. (NASDAQ:SSRM) has a dividend yield of 2.58% as of December 14. As of the end of the third quarter of 2023, 14 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in SSR Mining Inc..
Last month SSR Mining Inc. posted third quarter results. Adjusted EPS in the period came in at $0.26. Revenue in the quarter jumped 131.3% year over year to $385.39 million.
Palm Valley Capital Management made the following comment about SSR Mining Inc. in its Q3 2023 investor letter:
“We did not fully sell any positions during the third quarter. We purchased four new names: Avista Corporation (ticker: AVA), Farmland Partners (ticker: FPI), Equity Commonwealth (ticker: EQC), and SSR Mining Inc. (NASDAQ:SSRM). We believe these opportunities materialized because higher interest rates are disproportionately impacting investor sentiment toward certain sectors, even as capitalization-weighted, tech-heavy indexes have powered through the headwinds.
SSR Mining is back in the Fund after a brief hiatus. SSR is a precious metals producer with four mines located in the United States, Turkey, Canada, and Argentina. The company is selling at a meaningful discount to its tangible book value and our calculated net asset value. SSR has a very strong balance sheet with more cash than debt and $4.6 billion in stockholders’ equity. Furthermore, the firm has a history of generating free cash flow, buying back stock, and paying a sustainable dividend.”
11. Sibanye Stillwater Ltd (NYSE:SBSW)
Number of Hedge Fund Investors: 16
Sibanye Stillwater Ltd (NYSE:SBSW) is a high-dividend yield stock in our list of the best gold stocks with dividends. A total of 16 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in Sibanye Stillwater Ltd.
Recently, BMO Capital downgraded the stock to Market Perform from Outperform and cut the stock’s price target to $6 from $11. BMO is concerned about weakness in platinum group metals prices, execution risk and lack of visibility on Sibanye Stillwater Ltd’s battery metals portfolio.
The biggest stakeholder of Sibanye Stillwater Ltd during this period was Cliff Asness’s AQR Capital Management which owns a $31 million stake in Sibanye Stillwater Ltd.
10. Osisko Gold Royalties Ltd (NYSE:OR)
Number of Hedge Fund Investors: 18
Canadian company Osisko Gold Royalties Ltd (NYSE:OR) owns royalties in gold, silver and diamond mines. Last month Osisko Gold Royalties Ltd declared a quarterly dividend of CAD 0.06 per share. The dividend is payable on January 15.
A total of 18 hedge funds out of the 910 funds tracked by Insider Monkey were long Osisko Gold Royalties Ltd as of the end of the third quarter of 2023.
The company in Q3 earnings call talked about its projects and future expectations:
Recent global events have all served to underpin our belief that maintaining a high exposure to Tier 1 and well-established mining jurisdictions is more important now than ever. So switching gears a little bit. I’d like to quickly touch on the balance sheet. At the quarter end, we had net debt of $245 million, placing us in a sound financial position and one that we look to strengthen. As we stated previously, the covenant performance is exceptionally strong on the facility with cash margins of 93%. And on our equity investments held on the balance sheet, we will continue to balance our own need for incremental funding against our perception of what fair value is for the various positions held. So in closing, Osisko remains well positioned to continue its growth path.
Further to this, positive catalysts continue to unfold across the asset base, as indicated in our optionality bar. Assets that will further add to OR’s growth towards the end of the decade and beyond. And a couple of examples include the upcoming final feasibility study for Hermosa first sub 30 — from South32 at Hermosa, now expected to be released to the market in the first quarter of 2024. Ongoing construction milestones at both TZ and Namdini, as these 2 projects work their way towards first production in late 2024. And the results from the Marimaca copper feasibility study likely also coming in 2024 with the recent appointment of Asanko Chile to lead the engineering efforts. So having now spent several months in the seat working with the team here, I wanted to make 2 closing statements as this will be my last quarterly call.
Read the entire earnings call transcript here.
Like OR, hedge funds also like Newmont Corporation, Agnico Eagle Mines Ltd and Barrick Gold Corp.
9. B2Gold Corp (NYSE:BTG)
Number of Hedge Fund Investors: 19
B2Gold Corp (NYSE:BTG) has pulled back significantly this year, having lost about 10% this year.
In November B2Gold Corp posted third quarter results. Adjusted EPS in the quarter came in at $0.05, missing estimates by $0.02. Revenue in the quarter jumped 21.7% year over year to $477.89 million, surpassing estimates by $12.55 million.
A total of 19 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in tB2Gold Corp. The biggest stakeholder of B2Gold Corp was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $34 million stake in B2Gold Corp.
8. Pan American Silver Corp (NYSE:PAAS)
Number of Hedge Fund Investors: 22
With a dividend yield of over 2%, Pan American Silver Corp (NYSE:PAAS) ranks 8th in our list of the best gold stocks with dividends. The stock fell in November after Pan American Silver Corp posted weak Q3 results. Adjusted EPS in the quarter came in at $0.01, missing estimates by $0.06. Revenue in the quarter increased by about 81.9% year over year to $616.3 million, missing estimates by $47.92 million.
A total of 22 hedge funds tracked by Insider Monkey had stakes in Pan American Silver Corp as of the end of the third quarter of 2023.
7. Royal Gold Inc (NASDAQ:RGLD)
Number of Hedge Fund Investors: 23
Colorado-based Royal Gold Inc (NASDAQ:RGLD) is a popular gold stock with dividends among the elite hedge funds tracked by Insider Monkey. In November, Royal Gold Inc increased its dividend by 6.7%. The new dividend is payable by January 19, 2024.
During the third quarter, Royal Gold Inc’s adjusted EPS came in at $0.76, missing estimates by $0.02. Revenue in the quarter jumped 5.5% year over year to $138.62 million, beating estimates by $11.33 million.
As of the end of the third quarter of 2023, 23 hedge funds were long Royal Gold Inc. The biggest stakeholder of Royal Gold Inc was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $386 million stake in Royal Gold Inc.
6. Wheaton Precious Metals Corp (NYSE:WPM)
Number of Hedge Fund Investors: 24
Canadian precious metals company Wheaton Precious Metals Corp (NYSE:WPM) has a dividend yield of 1.24% as of December 14. In November, Wheaton Precious Metals Corp posted Q3 results. Adjusted EPS in the quarter came in at $0.268. Revenue jumped about 2% year over year to $223.14 million, missing estimates by $25.29 million.
A total of 24 hedge funds tracked by Insider Monkey were long Wheaton Precious Metals Corp. The biggest stakeholder of Wheaton Precious Metals Corp during this period was Jean-Marie Eveillard’s First Eagle Investment Management which owns an $851 million stake in Wheaton Precious Metals Corp.
In addition to WPM, hedge funds are also buying Newmont Corporation, Agnico Eagle Mines Ltd and Barrick Gold Corp.
5. Franco-Nevada Corp (NYSE:FNV)
Number of Hedge Fund Investors: 27
Franco-Nevada Corp (NYSE:FNV) ranks 5th in our list of the best gold stocks with dividends. Last month Franco-Nevada Corp posted third quarter results. Adjusted EPS in the three-month period came in at $0.91, above the analyst consensus by $0.02. Revenue inched up by about 1.7% year over year to $309.5 million, missing estimates by $13.84 million.
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Investors: 29
Canadian gold and silver mining company Kinross Gold Corporation (NYSE:KGC) ranks 4th in our list of the best gold stocks with dividends.
A total of 29 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in Kinross Gold Corporation.
3. Barrick Gold Corp (NYSE:GOLD)
Number of Hedge Fund Investors: 36
Canadian-based gold and copper mining company Barrick Gold Corp’s adjusted EPS in the third quarter came in at $0.24, beating estimates by $0.04. Revenue jumped about 13% year over year to $2.86 billion.
President and CEO of Barrick Gold Corp, Mark Bristow, during Q3 earnings call, talked about Barrick Gold Corp’s dividend policy, among other things:
“… it stands that we pay a base dividend of $0.10 a quarter anytime because our long-term business strategy delivers that base dividend no matter what the gold price is or what the most foreseeable gold price or minimum gold price is. And then once we get a net positive cash position, we add to that $0.10.
Now the way we can manage that is and we won that because we are in the growth phase. And I have proven before, and I am determined to prove it again. If you keep investing into profitable assets, ultimately, you make more money than you need to reinvest in your future. And that is what happened in Randgold after 10-years, and we had … of growing dividends no matter what the gold price was. And so, the way we can manage that, buyback relative to dividend is when we see the trajectory going above net cash, we have a choice. Buyback the stock or let it go past that point. And then at the end of the quarter, if we have got net cash, we it triggers our dividend policy. So that, as management, we can manage that and we never put the balance sheet at risk.”
Read the entire earnings call transcript here.
2. Agnico Eagle Mines Ltd (NYSE:AEM)
Number of Hedge Fund Investors: 38
Headquartered in Canada, Agnico Eagle Mines Ltd has operations in Australia, Mexico, Finland and Canada. In October Agnico Eagle Mines Ltd posted Q3 results. Adjusted EPS in the period came in at $0.44 surpassing estimates by $0.02.
A total of 38 hedge funds in Insider Monkey’s database had stakes in Agnico Eagle Mines Ltd. The biggest stakeholder of Agnico Eagle Mines Ltd was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $283 million stake in Agnico Eagle Mines Ltd.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Investors: 49
With a dividend yield of about 4% and 49 hedge fund investors, Newmont Corporation tops our list of the best gold stocks with dividends according to smart money investors.
As of the end of the third quarter of 2023, 49 hedge funds in Insider Monkey’s database were long Newmont Corporation. The biggest stakeholder of Newmont Corporation was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $675 million stake in Newmont Corporation.
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Disclosure. None. 12 Best Gold Stocks With Dividends was initially published on Insider Monkey.
