Tag: CGAU

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 Dividend Paying Gold Mining Stocks

by Fred Fuld III

4 minute read time

Gold has long been prized for its value and versatility, serving both as a store of wealth and a key material in various industries. As a precious metal, gold has traditionally been used to hedge against inflation, providing stability to investors during times of economic uncertainty. Its intrinsic value, resistant to the erosive effects of inflation, makes gold a safe haven when currencies fluctuate or geopolitical risks rise. Beyond its monetary significance, gold has numerous applications, ranging from jewelry and electronics to medicine and aerospace. This enduring demand across sectors ensures that gold remains a valuable asset, even as economies shift.

For investors seeking income as well as exposure to the gold market, dividend-paying gold mining stocks offer a unique opportunity. While gold itself does not generate cash flow, companies that mine gold can distribute profits to shareholders in the form of dividends. Below, we highlight three top gold mining stocks known for their dividend payouts: B2Gold (BTG), Centerra Gold (CGAU), and Gold Fields (GFI). These companies not only benefit from rising gold prices but also reward shareholders with consistent income.

B2Gold (BTG): A Low-Cost Producer with Strong Dividends

B2Gold, based in Canada, is one of the world’s low-cost senior gold producers, with operations in Mali, the Philippines, and Namibia. Known for its disciplined approach to mining, B2Gold has maintained a strong balance sheet and low debt, allowing it to reward shareholders with steady dividends. The company has a market capitalization of approximately $4.1 billion, reflecting its significant presence in the gold mining industry. With a forward price-to-earnings (P/E) ratio of 7.7, B2Gold offers attractive value, especially for investors looking for exposure to the gold market at a reasonable valuation.

What sets B2Gold apart is its commitment to returning capital to shareholders through its dividend program. Currently, the stock has a dividend yield of around 4.8%, making it one of the more attractive income plays in the sector. Despite fluctuations in gold prices, B2Gold’s efficient operations and strong cash flows enable it to sustain its dividend while continuing to invest in growth. For income-focused investors seeking stability, B2Gold is a compelling choice.

Centerra Gold (CGAU): A Diversified Gold and Copper Producer

Centerra Gold is a Canadian-based gold mining and exploration company with operations and projects in North America, Turkey, and Mongolia. Centerra distinguishes itself through its diversified production profile, which includes significant exposure to copper in addition to gold. This diversification provides Centerra with some insulation from the volatility of gold prices, making it a well-rounded investment in the resource sector. The company has a market cap of about $1.5 billion and a forward P/E ratio of 10.3, indicating that the stock is relatively inexpensive compared to its earnings.

Centerra Gold offers a dividend yield of approximately 2.9%, providing investors with a reliable income stream. The company’s ability to generate cash flow from both gold and copper production helps support its dividend payments, even in challenging market conditions. While Centerra has faced operational challenges in the past, particularly at its Kyrgyz Republic operations, it has worked to diversify its asset base and reduce geopolitical risk. For investors seeking a blend of gold exposure with a diversified resource portfolio, Centerra Gold presents an intriguing opportunity.

Gold Fields (GFI): A Global Player with Robust Dividends

Gold Fields, headquartered in South Africa, is one of the largest gold mining companies in the world, with operations spanning South Africa, Ghana, Australia, and South America. The company has built a reputation for its focus on sustainability and operational efficiency, ensuring long-term value creation for its shareholders. With a market capitalization of approximately $13.9 billion, Gold Fields is a major player in the gold mining industry. The stock has a trailing P/E ratio of 22 and a forward P/E ratio of 8.6.

Gold Fields stands out for its commitment to paying dividends, offering a dividend yield of around 2.5%. The company has a history of adjusting its dividend payments to reflect profitability, which allows it to maintain a healthy balance sheet while still rewarding shareholders. As a global producer, Gold Fields benefits from diverse geographical exposure, reducing the risks associated with operations in any single region. For investors looking for a large, stable gold mining company with a solid dividend, Gold Fields is a strong contender.

Conclusion

As gold continues to serve as a hedge against inflation and economic instability, gold mining companies offer a unique way for investors to benefit from rising gold prices while also earning income through dividends. B2Gold, Centerra Gold, and Gold Fields represent three top dividend-paying gold miners, each with its unique strengths. B2Gold provides low-cost production and a high yield, Centerra offers diversification through copper, and Gold Fields delivers global exposure and robust dividends. For investors seeking both growth potential and income, these gold mining stocks are worth serious consideration.

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