Best Gold Mining Stocks 2019 – Gold Mining Stocks that Pay Dividends
In times of market turbulence, investors regularly resort to gold as a safe haven. However, you can also indirectly invest in gold by buying shares in mining companies – or related companies that focus on gold production. Depending on their business models and structures, these companies may not be as directly impacted by the gold price. Gold as a direct investment only allows you to gain or lose as the price of gold rises and falls. On the other hand, the best gold mining stocks are involved in other activities that can grow and appreciate. This further separates their relationship to the gold price. Another strategy to consider is selecting gold stocks with dividends…
Buying physical gold is a proven way to hold and store wealth. However, gold bullion does not generate income. The only way to realize any profit is to sell the gold. Owning Gold stocks is a way to enjoy increases in the price of gold with growth potential if the stock itself appreciates in value. Wouldn’t it be great to have the security of owning gold AND the growth potential of stock appreciation AND a steady stream of income in the form of regular dividend payouts? You can do this – simply by investing in gold stocks with dividends.
A little exposure to gold can help diversify your portfolio. One strategy to get that exposure is through mining companies Their results are heavily linked to the metal’s price but can also stand out from one another. Their performance can set them apart based on their management, operational efficiency and economies of scale.
Top 10 Gold Mining Companies with Dividends
Centamin PLC (TSX:CEE) Dividend Yield 9%
Centamin’s key asset is its Sukari Mine, located in Egypt. Sukari produces approximately 500,000 ounces of gold per year and has been in operation since 2009. It has an expected life of 20 years, leaving investors with another decade plus of predictable cash flow and dividends ahead of them. The company also has more than $300 million worth of cash and equivalents and zero debt on its balance sheet. The payout in 2017 was 2.5 cents per share and then 10 cents per share, both in U.S. Dollars. This works out to approximately a 9% dividend yield. Centamin tops our list of gold stocks with dividends.
Dividend Paying Mining Stocks – Newmont Goldcorp Corp (NEM) Dividend Yield 11.33%
Newmont Goldcorp Corp, formerly Newmont Mining Corporation, incorporated on December 06, 2001. It is a mining company, which is focused on the production of and exploration of gold, copper, silver, zinc and lead. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa.
This Mining Company has a history dating back almost 100 years. This makes it one of the oldest mining operations. The Colorado-based company has operations in five countries around the world. It is currently the only gold mining company to be listed in the S&P 500.
Alamos Gold Inc (AGI.TO) Dividend Yield 0.04%
Alamos Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and extraction of gold deposits in North America. It also explores for silver and precious metals. The company’s flagship project is the Young-Davidson mine, which includes contiguous mineral leases and claims totaling 11,000 acres located in Northern Ontario, Canada. It also holds interests in a portfolio of development stage projects in Turkey, Canada, Mexico, and the United States. The company was formerly known as AuRico Gold Inc. and changed its name to Alamos Gold Inc. in July 2015. The company is headquartered in Toronto, Canada.
Barrick Gold Corp (GOLD.N) Dividend Yield 0.28%
Barrick Gold Corp is a gold mining company. The Company is principally engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company’s segments, include Barrick Nevada, Golden Sunlight, Hemlo, Jabal Sayid, Kalgoorlie, Lagunas Norte, Lumwana, Porgera, Pueblo Viejo, Turquoise Ridge, Veladero and Zaldvar. Pueblo Viejo, Lagunas Norte, Veladero and Turquoise Ridge are its individual gold mines. The Company, through its subsidiary Acacia, owns gold mines and exploration properties in Africa. Its Porgera and Kalgoorlie are gold mines. Zaldivar and Lumwana are copper mines. The Pascua-Lama project is located on the border between Chile and Argentina. The Company owns a number of producing gold mines, which are located in Canada, the United States, Peru, Argentina, Australia and the Dominican Republic.
GoldCorp Inc Dividend Yield 0.08%
Goldcorp Inc. acquires, explores for, develops, and operates precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, zinc, silver, lead, and copper deposits. Its principal producing mining properties include the Éléonore, Musselwhite, Porcupine, and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada. As of April 18, 2019, Goldcorp Inc. operates as a subsidiary of Newmont Mining Corporation.
Yamana Gold Inc (AUY) Dividend Yield 0.91%
Yamana Gold Inc. is a gold producer with gold production, gold development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s segments include Chapada mine in Brazil; El Penon mine in Chile; Canadian Malartic mine in Canada; Gualcamayo mine in Argentina; Minera Florida mine in Chile; Jacobina mine in Brazil; Brio Gold Inc. (Brio Gold), and Corporate and other. The Company’s development projects include Cerro Moro, Argentina; Agua Rica, Argentina, and Gualcamayo, Argentina. Its exploration projects include Chapada, Brazil; El Penon, Chile; Gualcamayo, Argentina; Minera Florida, Chile; Jacobina, Brazil; Cerro Moro, Argentina; Canadian Malartic Corporation, Canada; Monument Bay, Canada; Brio Gold Exploration; Pilar, Brazil; Fazenda Brasileiro, Brazil; RDM, Brazil, and C1 Santa Luz, Brazil.
Franco-Nevada (NYSE:FNV) Dividend Yield 1.34%
Franco-Nevada Corporation (Franco-Nevada) is a gold-focused royalty and stream company. The Company has interests in silver, platinum group metals, oil and gas and other resource assets. The Company is engaged in resource sector royalty/stream acquisitions and management activities. It has a portfolio of properties in the United States, Canada, Mexico, Peru, Chile and Africa.
Gold stocks with dividends are usually safer from royalty streaming companies than from pure mining operations. Franco-Nevada boasts nine consecutive years of dividend increases thanks to rapidly growing profits and cash flows backed by a diversified portfolio. The company also deals in platinum group metals, as well as oil and gas. Franco-Nevada projects its gold equivalent ounces production to rise roughly 14% by 2021 thanks to several newly acquired streams.
Royal Gold (NASDAQ:RGLD) Dividend Yield 1.2%
Royal Gold, Inc., incorporated on January 5, 1981. Together with its subsidiaries, it is engaged in acquiring and managing precious metal streams, royalties and similar interests. The Company operates through two segments: Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests. Its assets are located in Canada, Chile, Dominican Republic, Mexico, the United States, Africa, Australia and Other.
Royal Gold is one of the best gold mining stocks you can find today. It has a 16-year record of dividend increases. Royal Gold is not a miner; it is a royalty streaming company. Royal Gold finances other mining companies up front and buys metal streams at low prices in return. With this business model, Royal Gold doesn’t have to spend money extracting metals and can secure metals at low prices.
Sibanye Gold Ltd (NYSE: SBGL) Dividend Yield 4.68%
Sibanye Gold Limited, incorporated on December 12, 2002. It is an independent, global precious metal mining company. The Company is engaged in producing a mix of metals that includes gold and the platinum group metals (PGMs). Its projects are grouped by two regions: the Southern Africa region and the Americas region. Its products include gold, platinum group metals and by-products.
Agnico Eagle Mines Ltd (NYSE:AEM) Dividend Yield 1.21%
Agnico Eagle Mines Limited (Agnico Eagle), incorporated on June 1, 1972. It is a gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. The Company operates through three business units: Northern Business, Southern Business and Exploration.
Agnico Eagle Mines has 34 years of dividend history. The miner hasn’t missed a dividend since 1983. It increased its dividends by 25% last year. There is potential for Agnico to boost its dividends further given its free cash flow position.
Best Gold Mining Stocks – Bottom Line
The knock on gold for years has been that it’s not an investment, that it doesn’t produce revenue, pay you interest or dividends. Warren Buffett has been quoted in the past as saying: “It doesn’t do anything but sit there and look at you.”
However, owning gold stocks is a way for investors to gain exposure to the gold market and still generate a yield. It doesn’t have to come from buying physical gold bullion or trading gold futures contracts. You can receive income from gold and still benefit off its potential rise by buying gold stocks that offer a dividend.
The beauty behind investing in gold companies that offer dividends is that they tend to be financially stable. Investors can use those proceeds from the dividend to either pay themselves or reinvest the capital and buy more shares.
Gold Mining Stocks that Pay Dividends
Even if the company has strong reserves, the best gold mining stocks with the least risk also have a diversified reserve base. That way they are not dependent on a single mine’s production or political stability in any one country. Mining companies can also increase their reserves by making acquisitions—with mineral prices down from their record highs, watch for an increase in mining company acquisitions at distressed prices.
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