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].
- 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.
- 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].
- 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.
- 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.
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].
- 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.
- 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.
- 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].
- 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.
- 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.
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Disclosure: No positions at time of writing.
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