5 Best Materials Dividend Stocks To Buy Now

3. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Shareholders: 40

Dividend Yield: 2.43%

Barrick Gold Corporation (NYSE:GOLD) began making dual quarterly dividend payments last year, which includes a performance-based payout each quarter. The company raised its quarterly payouts to $0.10 at the beginning of this year, in addition to a $0.10 performance bonus in each of the first three quarters, which dipped to $0.05 for the fourth quarter. With gold prices expected to rise as much as 10% in 2023, the company is well positioned to continue paying out an attractive dividend. Barrick Gold pulled in $2.53 billion in revenue and $0.13 in non-GAAP EPS in Q3, both of which beat estimates.

Hedge fund ownership of Barrick Gold Corporation (NYSE:GOLD) peaked in the first quarter of 2020 at the height of pandemic fears, but has trended down since, falling by 26%. First Eagle Investment Management held the largest position in GOLD on June 30, owning over 26.6 million shares worth $471 million.

The ClearBridge Investments International Growth EAFE Strategy likes the work Barrick Gold Corporation (NYSE:GOLD) has done to delever its balance sheet and return more money to shareholders, as the fund discussed in its Q1 2022 investor letter:

“Also within the structural bucket, we have selectively added to our commodity exposure with the purchase of Barrick Gold (NYSE:GOLD). Canadian mining company Barrick Gold is a play on operating improvements. The company has aggressively delevered its balance sheet and reduced capex spending to a lower level more permanently, directing its healthy free cash flow to dividends and buybacks.”