In this article, we discuss 5 gold stocks that pay dividends. If you want to read about some more gold stocks that pay dividends, click 10 Gold Stocks that Pay Dividends.
5. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 29
Dividend Yield as of May 12: 0.91%
Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. The firm has an impressive track record in the dividend space, considering it has paid a dividend to shareholders consistently for the past thirteen years. The sector median in this regard is just eleven years. Over the past two years, these payouts have been growing as well. On May 4, the firm declared a quarterly dividend of $0.32 per share, in line with previous. The dividend is payable to shareholders by the end of June.
On April 19, KeyBanc analyst Adam Josephson kept an Overweight rating on Franco-Nevada Corporation (NYSE:FNV) stock and raised the price target to $180 from $150, noting that the target raised reflected the higher commodity prices.
At the end of the fourth quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Franco-Nevada Corporation (NYSE:FNV), up from 26 in the preceding quarter worth $951 million.
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 31
Dividend Yield as of May 12: 2.78%
Kinross Gold Corporation (NYSE:KGC) acquires, explores, and develops gold properties. The company recently posted earnings for the first quarter of 2022, reporting earnings per share of $0.06 and a revenue of $768 million. The stock has also gained recently on the back of reports that Barrick Gold, another gold giant, is interested in buying out the company. Kinross has been divesting Russian assets in the wake of the Ukraine invasion and has recently cut production guidance for 2022 to reflect these developments.
On April 27, investment advisory Stifel maintained a Buy rating on Kinross Gold Corporation (NYSE:KGC) stock but lowered the price target to C$11.5 from C$14. Analyst Ingrid Rico issued the ratings update.
At the end of the fourth quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $365 million in Kinross Gold Corporation (NYSE:KGC), up from 27 in the previous quarter worth $321 million.
3. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 45
Dividend Yield as of May 12: 3.35%
Newmont Corporation (NYSE:NEM) produces and explores for gold. Tom Palmer, the CEO of the firm, has recently said that the company plans to move ahead with plans to invest $2 billion into a mine expansion project in Peru. The firm has already committed $500 million in funding to this plan. Newmont also plans to expand into copper production as part of this plan. The investment will boost the government of Peru that has witnessed two of the largest copper mines in the country suspend production following conflicts with indigenous communities.
Newmont Corporation (NYSE:NEM) has paid a dividend to shareholders consistently for the past three decades. These payouts have grown over the past two years. On April 21, the company declared a quarterly dividend of $0.55 per share, in line with previous.
At the end of the fourth quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Newmont Corporation (NYSE:NEM), compared to 48 in the preceding quarter worth $774 million.
In its Q3 2021 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Newmont Corporation (NYSE:NEM) was one of them. Here is what the fund said:
“The largest gold miner in the world, Newmont Corporation (NYSE:NEM) shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
2. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 46
Dividend Yield as of May 12: 1.88%
Barrick Gold Corporation (NYSE:GOLD) is a mining firm with prime interests in gold and copper. On May 4, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $0.26, beating market estimates by $0.02. The revenue over the period was $2.85 billion, beating expectations by $100 million. The firm also disclosed that it had generated free cash flows of $393 million during the quarter. The company has paid a dividend to shareholders consistently for the past 25 years.
On April 20, National Bank analyst Mike Parkin maintained a Sector Perform rating on Barrick Gold Corporation (NYSE:GOLD) stock and raised the price target to C$38 from C$29. Barclays also recently raised the price target on the stock.
At the end of the fourth quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $958 million in Barrick Gold Corporation (NYSE:GOLD), up from 41 the preceding quarter worth $917 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:
“Also within the structural bucket, we have selectively added to our commodity exposure with the purchase of Barrick Gold Corporation (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.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 66
Dividend Yield as of May 12: 1.66%
Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based minerals and mining firm. In the first quarter of 2022, the gold sales of the company climbed by 59% to 409,000 recoverable oz. During the period, the realized price for gold gained 12% to $1,920/oz. In the first three months of the year, gold sales for the firm were 8% higher than prior guidance of 380,000 oz, primarily reflecting higher recoveries. The stock has gained more than 20% in the past few months as rising inflation increases interest in gold purchases.
Freeport-McMoRan Inc. (NYSE:FCX) posted earnings for the first quarter of 2022 in late April, reporting earnings per share of $1.07, beating market estimates by $0.15. The revenue over the period was $6.6 billion, up 36% year-on-year.
At the end of the fourth quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Freeport-McMoRan Inc. (NYSE: FCX), the same as in the preceding quarter worth $3.2 billion.
In its Q4 2021 investor letter, Horizon Kinetics LLC, an asset management firm, highlighted a few stocks and Freeport-McMoRan Inc. (NYSE:FCX) was one of them. Here is what the fund said:
“Those were some ideas about copper demand. Here are some specifics about supply. Global copper mine production in the 10 years from 2005 to 2015 rose 2.45% annually. In the next 5 years, to 2020, it increased by only 0.9% annually. Even ignoring the 2020 pandemic year, for the 4 years from to 2019, the expansion rate was 1.66%. We already have the historical context for this: the commodity price collapse prior to 2015, from a position of excess capacity.
What producers must do in that situation, because they have high fixed costs and debt expense, is curtail their exploration and development expenditures and reduce operating costs. They rely on existing mines, instead, and on their highest-grade ores and lowest-cost production. They might not actually reduce current production, but they aren’t replacing the reserves that are being slowly drawn down. You can see this at work at the individual company level.
Freeport-McMoRan Inc. (NYSE:FCX) will illustrate. It is the world’s third-largest copper producer, closely following Chile’s Codelco and Australia’s BHP Group. In 2014, even though Freeport sold more copper than the prior year, its revenues dropped by over 25%, and it went from $4.8 billion of operating earnings (a 22% margin) to a $(0.2) billion loss. The company’s capital expenditures peaked in 2014 at $3.86 billion and will be about $1.72 billion in 2021, meaning the company is spending 55% less now than it was seven years ago. In inflation-adjusted terms, it’s spending 61% less today than seven years ago…” (Click here to see the full text)
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