Get the best of both worlds with these dividend gold stocks
- Gain exposure to relevant precious metals and passive income through the top dividend gold stocks.
- Barrick Gold (GOLD): Barrick Gold offers operational acumen and decent yield.
- Newmont (NEM): Newmont’s massive footprint also offers a sizable dividend.
- B2Gold (BTG): B2Gold is riskier but also delivers generous passive income.
Although recent data, such as the hotter-than-expected May jobs report suggests the economy is just fine, the fine print may actually incentivize top dividend gold stocks to buy. In particular, the data reveals that job seekers are incurring more time before they finally ink employment contracts. That’s not exactly a hopeful sign.
In addition, the other problems that society faces – such as stubbornly high inflation and rising corporate layoffs – bode rather poorly for stability and consumer confidence. With the precious metals representing safe-haven assets, investors may be able to mitigate potential ambiguities with gold stocks for dividend growth. Of course, the passive income component is always relevant and even more so for this present juncture. Therefore, market participants may enjoy the best of both worlds with the top gold stocks for dividends.
| GOLD | Barrick Gold | $16.81 |
| NEM | Newmont | $42.44 |
| BTG | B2Gold | $3.70 |
Barrick Gold (GOLD)
Among the more popular names for top dividend gold stocks, Barrick Gold (NYSE:GOLD) is a mining firm that produces gold and copper. Per its public profile, Barrick features 16 operating sites in 13 countries. While a relevant enterprise, GOLD incurred some choppy trading. Since the beginning of this year, shares lost more than 5% of their equity value.
Nevertheless, Barrick offers an intriguing idea for gold stocks for dividend growth. On the financial side, the company scores relatively well for profitability. Specifically, its trailing-year operating margin impresses at 24.64%, ranked above 84.86% of entities listed in the metals and mining industry. Also, its return on equity (ROE) pings at 0.36%, which actually beats out 79.15% of other miners.
Regarding passive income, Barrick offers a solid (though not particularly generous) forward yield of 2.37%. However, what it lacks in outright generosity it makes up for with sustainability. Its payout ratio sits at 34.47%, which is encouraging. Overall, Barrick makes a conservative case for the best dividend-paying gold stocks.
Newmont (NEM)
A giant among the top dividend gold stocks, Newmont (NYSE:NEM) is the world’s leading gold company and a producer of copper, silver, zinc, and lead. According to its corporate profile, Newmont’s world-class portfolio of assets, prospects, and talent is anchored in favorable mining jurisdictions in North America, South America, Australia, and Africa. Despite its prominence, NEM shed more than 15% of its equity value.
Still, for the intrepid investor, Newmont offers a chance to acquire one of the top gold stocks for dividends at a compelling discount. To be fair, the financial impact of the Covid-19 crisis did a number on the underlying business. Specifically, the company fell into the red due to lower realized gold prices. However, Newmont maintains an impressive operating margin of 11.1%, beating out 70.67% of its peers.
On the passive income front, Newmont represents one of the high-dividend gold stocks with a forward yield of 3.81%. This handily beats out the material sector’s average yield of 2.82%. Still, investors should note that the payout ratio is a tad bit elevated at 59.08%.
B2Gold (BTG)
A popular speculative idea, B2Gold (NYSEAMERICAN:BTG) may surprise some onlookers because it’s also one of the top dividend gold stocks. We’ll get to that soon enough. According to its public profile, B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. It features operating gold mines in Mali, Namibia, and the Philippines. Priced at less than four bucks a share, BTG gained almost 4% since the start of the year.
Financially, B2Gold’s main strengths lie in balance sheet stability and profitability. For the former, the company carries a favorably low debt-to-equity ratio of 0.02 times. Regarding the latter, the miner’s operating margin impresses at 32%, which ranks above 89.42% of competitors. Also, its net margin is 14.16%, beating out 79% of its peers.
Moving onto passive income, the mining firm’s forward yield stands at 4.2%. Again, that’s well above the material sector’s average yield of 2.82%. Also, its payout ratio – while somewhat elevated – is quite reasonable at 52.57%. Thus, BTG makes a great case for top gold stocks for dividends.
This post originally appeared at InvestorPlace.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
