Top Yielding Gold Mining Stocks: Great Inflation Hedges

by Fred Fuld III

Investing in gold mining stocks that pay dividends offers a compelling blend of income generation and exposure to the precious metals market. Unlike physical gold, which does not yield income, dividend-paying gold miners provide regular cash payouts, making them attractive to income-focused investors. Additionally, these stocks often exhibit leverage to gold prices, potentially amplifying returns during bullish market conditions. These stocks have historically been considered great inflation hedges.

Let’s explore four notable dividend-paying gold mining stocks: AngloGold Ashanti Plc (AU), Centerra Gold Inc (CGAU), Caledonia Mining Corporation Plc (CMCL), and Gold Fields Ltd (GFI).

AngloGold Ashanti Plc (AU)

AngloGold Ashanti, a prominent global gold producer, headquartered in the UK offers investors a semi-annual dividend, with a current yield of approximately 2.08% and a projected forward yield of over 5%. The company has demonstrated a commitment to returning value to shareholders, with a payout ratio of 39.06%, indicating a balanced approach between rewarding investors and retaining earnings for growth. AngloGold’s diversified portfolio of mining assets across multiple continents positions it well to capitalize on favorable gold market dynamics.

Earnings per share spiked 126% this year on a 26% rise in revenues over last year. The stock trades at a trailing price to earnings ratio of 19, and a forward P/E of 8.5. The price to earnings growth ratio is a very favorable 0.80.

Centerra Gold Inc (CGAU)

Centerra Gold, a Canadian-based miner, provides a quarterly dividend, yielding around 2.9% with a projected forward yield of 3.1%. The company’s consistent dividend payments reflect its stable operational performance and prudent financial management. With a payout ratio of 56.75%, Centerra balances shareholder returns with reinvestment in its operations. The company’s assets in North America and Asia offer geographical diversification, potentially mitigating region-specific risks.

Earnings per share growth this year were 12.8% on a slight drop in revenues for the year over last year. The stock is selling for 87% of book value and has a reasonable price to sale ratio of 1.25. One factor that the company has going for it is an extremely low amount of debt, with a debt to equity ratio of 0.01.

Caledonia Mining Corporation Plc (CMCL)

Caledonia Mining, another UK headquartered company, stands out with a robust dividend yield of approximately 3.2% , making it an attractive option for income-oriented investors. Operating primarily in Zimbabwe, the company has maintained strong financial performance, supported by its flagship Blanket Mine. Caledonia’s commitment to shareholder returns is evident in its consistent dividend payments, even as it invests in expansion projects like the Bilboes gold project.

The stock has an excellent PEG ratio of 0.88, with strong earning per share growth of 97.8%, on a 29.7% sales growth. Quarterly earnings growth year-over-year was an incredible 318%.

Gold Fields Ltd (GFI)

Gold Fields based in South Africa, one of the world’s largest unhedged gold producers, offers a semi-annual dividend with a yield of approximately 2.4% and a projected future dividend yield of 4.5%. The company’s diversified operations across South Africa, Ghana, and Australia provide a solid foundation for sustained performance. With a dividend payout ratio of 25.96%, Gold Fields demonstrates a conservative approach, ensuring ample reinvestment capacity while delivering shareholder value.

Earnings per share growth this year jumped 84%, on revenues of 13.4% growth year-over-year. This gives the shares an outstanding 0.76 PEG ratio. The trailing PE ratio is 17 with a forward PE of 8.

Conclusion

Dividend-paying gold mining stocks like AU, CGAU, CMCL, and GFI offer investors a unique combination of income and exposure to gold price movements. These companies’ commitment to regular dividend payments reflects their financial stability and operational efficiency. For investors seeking to diversify their portfolios with assets that can potentially hedge against inflation and economic uncertainty, while also providing income, these gold miners present compelling opportunities.

Disclosure: Author didn’t wn any of the above at the time the article was written.

Top Inflation Hedge Gold Mining Stocks

by Fred Fuld III

It was just back in September when I wrote the article Top Gold Mining Stocks, almost six months to the day. In the article, I listed seven gold mining companies. The following shows the returns for those stocks.

Stock	Symbol	9/13/22	3/10/22	Gain/Loss
AngloGold Ashanti Limited	AU	15.5	25.73	66%
Caledonia Mining Corporation Plc	CMCL	12.36	13.49	9%
DRDGOLD Limited	DRD	9.15	10.14	11%
Gold Fields Limited	GFI	8.64	16.69	93%
Harmony Gold Mining Company	HMY	3.28	5.41	65%
Kinross Gold Corporation	KGC	5.75	5.66	-2%
Sibanye Stillwater Limited	SBSW	13.61	18.32	35%
AVERAGE				40%

As you can see, there was only one loser in the bunch, Kinross Gold (KGC) which was down 2%. However, all the others were up substantially. One, Gold Fields (GFT), almost doubled. The overall average return was 40%; not too shabby for a six month period.

Gold an Inflation Hedge & Recession Hedge?

Some studies have shown that gold may not track inflation during short time frames, but over long periods of time, gold has been considered an inflation hedge and a hedge against a downturn in the economy.

According to the U.S. Bureau of Labor Statistics, “gold prices can act as an indicator of the health of the economy. A rise in the price of gold may be a signal that the economy is struggling. As a result, in times of either a crisis or inflation, many investors turn to gold to protect their principal. By contrast, in times of economic stability, investors are more likely to turn to more speculative investments, such as stocks, bonds, and real estate. During these times, the price for gold often declines.”

(What is surprising about this statement is that stocks, bonds, and real estate are considered “speculative investments”. Does that make gold a “safe investment”?)

Top Gold Mining Stocks

So now that gold has started to move up, and recently broke the $2000 an ounce price barrier, what gold mining stocks have solid ratios now.

There are currently four gold mining companies that have trailing price to earnings ratios of less than 25, forward price to earnings ratios of less than 25, and yields above 2%. You will notice that only one stock from the old list, Agnico, made the cut for the new list.

Agnico Eagle Mines Limited (AEM)

Agnico Eagle is a Canadian based mining company with mines in Canada, Sweden, and Finland. The stock has a trailing P/E ratio of 23.3, a forward P/E ratio of 24.33, and pays a yield of 2.28%. Annual earnings per share growth for the last five years is 79%.

AngloGold Ashanti Limited (AU)

AngloGold, based in Johannesburg, South Africa, has mines in Africa, North America, South America, and Australia. The stock trades at 16.9 times trailing earnings and 12 times forward earnings. The dividend payout rate is 2.11%. Annual earnings per share growth for the last five years is 97%.

B2Gold Corp. (BTG)

The Canada based company, B2Gold, has three operating mines in Mali, the Philippines, and Namibia. The stock has a very favorable P/E ratio of 10.7 and forward P/E of 10.4. Even the price to earnings growth ratio is a commendable 0.53. Annual earnings per share growth for the last five years is 33%.

Sibanye Stillwater Limited (SBSW)

Sibanye is a South African company that has mines in South Africa, the United States, Zimbabwe, Canada, and Argentina. The stock has an excellent price to earnings ratio of 6.2, with a forward P/E of 12.2. Annual earnings per share growth for the last five years is 41%.

Maybe one of these mining stocks can provide your portfolio with a pot of gold.

Disclosure: Author owns BTG

Top Gold Mining Stocks

by Fred Fuld III

Why invest in gold?

It may have bottomed out on a short term basis.

Inflation is on the horizon.

Provides diversification by asset type.

It provides protection against a falling dollar.

It is used in the tech industry.

What are some the the best gold mining stocks?

All of the following stocks have a trailing price to earnings ratio of less than 15, a forward P/E ratio of less than 15, and pay a dividend with a yield of at least 2%.

AngloGold Ashanti Limited	AU
Caledonia Mining Corporation Plc	CMCL
DRDGOLD Limited	DRD
Gold Fields Limited	GFI
Harmony Gold Mining Company	HMY
Kinross Gold Corporation	KGC
Sibanye Stillwater Limited	SBSW

Caledonia is based in the United States, Kinross is based in Canada, and the rest are based in South Africa.

Hopefully, one of these gold mining stocks will make your portfolio shine.

Disclosure: Author didn’t own any of the above at the time the article was written.

Is It Time for Gold Stocks to Move Up?

by Fred Fuld III

Over the last three months, stocks have been going up, bitcoin has been going up, but gold and gold mining stocks have been dropping in price.

This is in spite of the fact that gold is considered a safe haven, interest rates are very low, the dollar is weak, and the economy will experience eventual increasing inflation.

Not only that, Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) bought Barrick Gold (GOLD) earlier this year.

So it it time for gold and the gold mining stocks to start moving up?

The following is a group of gold stocks that are down over 10% for the latest quarter, have a trailing price to earnings ratio of less than 20, and a forward P/E ratio of less than 20.

AngloGold (AU)

Caledonia Mining (CMCL)

Galiano Gold (GAU)

Barrick Gold (GOLD)

Disclosure: Author didn’t own any of the above at the time the article was written.

Corporate Earnings Announcements for Week 3 of August

Looking for some interesting moves in some stocks this upcoming week? Check out the companies that will be reporting earnings this week.

If earnings exceed analysts’ expectations, the stocks can shoot up. If the numbers underperform, the stock can tank. Then again, occasionally, stocks don’t move the way you would have expected.

Anyway, many traders use earnings plays for trading strategies. Also, option traders look for high implied volatility of stocks for for option selling strategies.

Here are many of the enormous number of stocks reporting earnings this week:

Monday

ALRM

DAVE

SYY

Tuesday

AAP

BHP

COTY

CREE

URBN

Wednesday

AEO

ADI

CSCO

SPLS

TGT

Thursday

AMAT

GPS

WMT

Friday

If you like interesting stock lists like this, be sure to check out many of the free stock lists at WallStreetNewsNetwork.com.