Is the Stock Market Party Over? Grab These Dividend-Paying Miners Before Gold Blasts Through $3000

There has always been a degree of scorn from Wall Street and so-called investment professionals over the years for those who invested in gold. They are laughed at as “gold bugs.” The argument against the precious metal, even though gold is among the most significant financial assets in the world and central banks have been loading up on the commodity, is that it is not typically a tradeable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility.”

For months, the Wall Street pros tried to sell the fact that everything was hunky dory and that inflation and the economy were almost back to normal. The reality is, while fourth-quarter earnings were respectable, the forward guidance from many companies has analysts ratcheting down their earnings expectations. Toss in the fact that the dollar is weakening with the economy, while tariffs are now a wild card that must be dealt with. With inflation way above the Federal Reserve target, the Atlanta Fed GDPNOW calculates that first-quarter gross domestic product could come down almost 3%. That is a kick-off to a recession.

The case for gold and gold miners is compelling for two reasons. First, gold can serve as a strategic hedge against inflation. Second, some top miners extract silver and other essential commodities for industrial applications. Plus, after pulling back sharply to start the year, investors are getting a chance to buy the shares of the top miners that pay dividends at reduced prices. We screened our 24/7 Wall Street commodity database, looking for the top mining companies that pay those dependable (sometimes significant) dividends. Five top stocks make the cut, all rated Buy at top Wall Street firms.

Why do we cover gold stocks?

Proper portfolio asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only can they hedge inflation, which, while currently lower, is still much higher than Federal Reserve targets, but they can also help if the market goes into correction or bear market mode, as they tend to trade inversely to markets.

Agnico Eagle Mines

This top stock is one of Wall Street’s most preferred North American gold producers and offers a 1.65% dividend. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold mining company that has consistently produced precious metals since 1957. Its eight mines are strategically located in Canada, Finland, and Mexico, with exploration and development activities spanning the United States and Sweden.

The company and its shareholders are wholly exposed to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.

The stock is breaking through highs set in November 2020 and 2024 and could explode higher.

TD Securities has a Buy rating with a $105 target price.

Barrick Gold

This stock is another top contender in the sector, offering a promising entry point and a 2.25% dividend. Barrick Gold Corp. (NYSE: GOLD) and Randgold Resources completed their merger on Jan. 1, 2019, propelling them to the forefront as the world’s largest gold company in production, reserves, and market capitalization.

The company holds a:

• 50% interest in the Veladero mine located in the San Juan Province of Argentina
• 50% interest in the KCGM, a gold mine located in Australia
• 95% interest in Porgera, a gold mine located in Papua New Guinea
• 50% interest in the Zalda­var, a copper mine located in Chile
• 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia

Barrick also owns gold mines and exploration properties in Africa and gold projects in South America and North America. It has a strategic cooperation agreement with Shandong Gold Group Co. Ltd.

Raymond James has an Outperform rating with a $24 target price.

B2Gold

For those seeking high returns, this small-cap gold stock offers an exciting opportunity for sector exposure and pays a 3.01% dividend. B2Gold Corp. (NYSE: BTG) is a dynamic gold producer with three mines in Mali, the Philippines, and Namibia.

It also operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia.

The company also has a 25% interest in Calibre Mining and approximately 19% interest in BeMetals. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland.

Jefferies has a Buy rating and a $5 price target.

DRDGOLD

While off the radar, this is another small-cap mining gem that pays a strong 2% dividend. DRDGOLD Ltd. (NYSE: DRD) is a gold mining company that operates a surface gold tailings retreatment business in South Africa.

It also involved exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD was formerly known as Durban Roodepoort Deep Limited and changed its name in 2004.

DRDGOLD is steadfast in its commitment to conducting profitable business that creates value for all stakeholders in the short, medium, and longer term. The company actively seeks synergies between its financial, human, social, natural, and manufactured aspects, demonstrating its dedication to sustainable growth and value creation.

H.C. Wainwright has a Buy rating with a $16.25 price objective.

Newmont

This is the largest mining company we cover, yielding a solid 2.33%, and is a timely buy for more conservative investors. Newmont Corp. (NYSE: NEM) is a gold company that produces copper, zinc, lead, and silver.

Its portfolio of assets and prospects is anchored in mining jurisdictions in:

• Africa
• Australia
• Latin America & Caribbean
• North America
• Papua New Guinea

Its African operation is Ahafo.

The Australian operations include Boddington, Cadia, and Tanami.

The Latin America and Caribbean  operations include:

• Cerro Negro
• Merian
• Penasquito
• Pueblo Viejo JV
• Yanacocha

Its North American projects include:

• Brucejack
• Cripple Creek & Victor
• Eleonore
• Musselwhite
• Nevada Gold Mines JV
• Porcupine and Red Chris

Its Papua New Guinea projects include Lihir. And its Ahafo mine is in the Ahafo region, approximately 290 kilometers northwest of Accra, the national capital city.

The Boddington mine operates within the Saddleback greenstone belt in Western Australia. Boddington is located 16 km from the rural farming town of Boddington and 130 km from Western Australia’s capital city.

Raymond James has a Buy rating with a $59 price target.

The SPDR Gold Shares ETF (NYSE: GLD) is one of the best pure plays on gold for investors. The trust that sponsors the fund holds physical gold bullion and some cash. Each share represents one-tenth of an ounce of the price of gold. However, the fund does not pay a dividend.

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