10 Gold Miners That Pay a Dividend

After the announcement of QE3, investors everywhere began flocking to gold. The precious metal has a number of appealing features, but its most alluring at the moment is its ability to hedge against a flailing dollar. With Bernanke and company slated to print $40 billion per month for an unknown duration, it seems that the greenback is due for a slump. Aside from the metal itself, many investors are also fond of gold equities, as they offer indirect exposure to the commodity, while allowing for advantages like a dividend. Below, we outline 10 gold miners that are currently paying a dividend to consider for your portfolio [for more gold news subscribe to our free newsletter].

  1. Gold Fields Ltd (GFI)
    • Dividend Yield: 3.42%
    • Market Cap: $9.4 billion
    • Payout Ratio: 20%
    • Beta: 0.71

    Gold Fields is a South African firm that has proven resources of approximately 217 million ounces of the yellow metal. The stock trades nearly 4 million times each day and is an investor favorite around the world. Unfortunately, the handsome dividend has not been enough to support the stock as it has lost more than 27% in the trailing year as global gold miners have struggled.

  2. Newmont Mining (NEM)
    • Dividend Yield: 2.46%
    • Market Cap: $28.1 billion
    • Payout Ratio: 293%
    • Beta: 0.12

    Newmont is one of the biggest names in gold mining as it holds reserves of more than 98 million ounces with over 31,000 square miles of land. The company had been struggling for most of the past year, but turned it on in September as bullishness for gold was renewed. It should be noted that the firm has a current P/E ratio of 121, which may scare off some investors who feel it to be overvalued [see also Three Reasons Why Gold Is Overvalued].

  3. Barrick Gold (ABX)
    • Dividend Yield: 1.90%
    • Market Cap: $41.9 billion
    • Payout Ratio: 15%
    • Beta: 0.28

    Another big name in the gold world, Barrick’s shares trade nearly 8.5 million times each day. The company has a current P/E ratio of 10.2 with EPS of 4.1, suggesting it may be undervalued. Like Newmont, ABX was struggling until the past few weeks, where it has begun to pick up steam performance-wise.

  4. IAMGOLD Corp. (IAG)
    • Dividend Yield: 1.60%
    • Market Cap: $5.9 billion
    • Payout Ratio: 27%
    • Beta: 0.65

    This Canadian exploration firm searches for gold among other coveted assets, giving it a nice appeal among investors. Though the company has been struggling as of late, investors will be happy to see that the firm is not funded by debt and keeps a sizable amount of cash on hand.

  5. Kinross Gold Corporation (KGC)
    • Dividend Yield: 1.57%
    • Market Cap: $11.6 billion
    • Payout Ratio: n/a
    • Beta: 0.61

    Trading more than 9 million times per day, Kinross has an established place in the investing world. Unfortunately, its underlying financials suggest a struggle as of late, with EPS of -2 and an abysmal quarterly growth rate of -37% (yoy). This may be a better stock to keep an eye on as opposed to pulling the trigger right away [see also Marc Faber Warns: Store Your Gold Overseas].

  6. Agnico-Eagle Mines Ltd. (AEM)
    • Dividend Yield: 1.56%
    • Market Cap: $8.8 billion
    • Payout Ratio: n/a
    • Beta: -0.03

    Another firm that has had trouble as of late, only to jump up over the past few months. For the time being, AEM’s financials look are a bit shaky, with an EPS of -3.3 and a negative ROE and ROA. But quarterly earnings growth has been solid, making this a good stock to keep an eye on as it looks to turn a corner in the coming months.

  7. AngloGold Ashanti Ltd. (AU)
    • Dividend Yield: 1.35%
    • Market Cap: $1.4 trillion
    • Payout Ratio: 22%
    • Beta: 0.46

    Anglo Ashanti was able to snag gold’s element symbol as their ticker and they were also able to snag a massive market cap of more $1 trillion. Of the stocks on this list, AU may be one of the most volatile, as its price has vaulted back and forth in recent weeks. Those wishing to buy into this firm will need to have a strong stomach as AU tends to move heavily in spite of its low beta.

  8. Compania de Minas Buenaventura SA (BVN)
    • Dividend Yield: 1.20%
    • Market Cap: $10.0 billion
    • Payout Ratio: 17%
    • Beta: 0.48

    BVN is based in Lima, Peru and is primarily engaged in the exploration and mining of gold and silver. Their current cash position nearly triples that of their debt, but their earnings growth has been dragging as of late [see also How to Build a GLD-Free Gold Bug Portfolio].

  9. GoldCorp (GG)
    • Dividend Yield: 1.17%
    • Market Cap: $37.6 billion
    • Payout Ratio: 31%
    • Beta: 0.47

    Yet another bellwether gold miner, GG trades hands more than 5 million times each day. The Canadian firm operates mines in Mexico and Argentina along with its home country. Though quarterly earnings growth has been dragging, GG has been able to significantly pick things up in the last few weeks as far as performance is concerned.

  10. Yamana Gold (AUY)
    • Dividend Yield: 1.17%
    • Market Cap: $14.2 billion
    • Payout Ratio: 36%
    • Beta: 0.57

    Yamana has set itself apart by gaining 12.7% in the trailing year where most of its competitors have actually seen their stock prices shrink. Like so many others on this list, AUY’s quarterly growth numbers have been weak, but its performance may draw in those who have been frustrated by the losses suffered by some of the more prominent names in the industry.

Don’t forget to subscribe to our free daily commodity investing newsletter and follow us on Twitter @CommodityHQ.

Disclosure: No positions at time of writing.

This entry was posted in Actionable Ideas, Asset Allocation, Commodity Producers, Gold, Precious Metals and tagged , , , , , , , , , , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

10 Responses to “10 Gold Miners That Pay a Dividend”

  1. [...] be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” Although no one is exactly sure what the Fed has in mind, [...]

  2. [...] years, investors have been touting the lucrative opportunities that can be found in the agricultural sector. Legendary investor Jim Rogers is perhaps best known [...]

  3. [...] surprise to an investor caught unawares. Given the frequent hefty capital spending demands of gold and silver exploration, a fund of small/mid-cap miners would not typically be expected to offer a consistent high dividend [...]

  4. [...] Though it was not able to amass the same amount of assets as GDXJ, this fund was able to more than double the performance of its competitor. For the trailing five year period, the fund has jumped by more than 23% as investors have hopped on board with gold equities. A fund like GDX allows you to maintain indirect gold exposure with an equity spin [see also 10 Gold Miners That Pay a Dividend]. [...]

  5. [...] Blogs that focus their efforts on providing you with gold news [see also 10 Gold Miners That Pay a Dividend]. [...]

  6. [...] Blogs that focus their efforts on providing you with gold news [see also 10 Gold Miners That Pay a Dividend]. [...]

  7. [...] The current strike first impacted the platinum and palladium industry, but quickly spread to the gold industry as well. Dozens have been killed in the protests that involve a fight for better working conditions [...]

  8. [...] NovaGold Resources Inc. (NG): NG is a miner of gold, silver, copper, zinc and lead ores primarily in Alaska and British Columbia. NovaGold is headquartered in Vancouver [see also 10 Gold Miners That Pay a Dividend]. [...]

  9. [...] Gold finds also focus on individual pieces of gold or nuggets that are found. Back in 1869 in Australia, a nugget that was named the Welcome Stranger was discovered just below the ground”s surface. The nugget measured nearly 2,300 troy ounces, or just above 70 kilograms. For convenience and to protect against such a large nugget being stolen, the Welcome Stranger was broken down into smaller gold pieces. The largest gold nugget in existence today is thought to be the Hand of Faith, which happens to be on display at the Golden Nugget casino in Las Vegas, Nevada. The Hand of Faith measures less than 1,000 troy ounces, or nearly 62 pounds, but still qualifies as a massive single piece of gold and one of the largest that will ever be on display to the public [see also 10 Gold Miners That Pay a Dividend]. [...]

Leave a Reply

  • Subscribe

    • RSS Icon   Twitter Icon
    • Sign up for free today:
  • Search