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24/7 Wall St. Insights
- Demand for gold continues to skyrocket as the precious metal surges toward $3,000 per ounce.
- Retail investors have joined a long list of gold investors in 2024.
- Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. Access two legendary, high-yield dividend stocks Wall Street loves.
Gold's incredible run over the past year has been nothing less than amazing, and many analysts feel there is room for the legacy commodity to continue its historic climb. The recent surge in gold prices is due primarily to the U.S. Federal Reserve's recent decision to cut interest rates. The Fed announced a 50-basis-points reduction, which has set the stage for potential further cuts, including another half-point by year-end.
Top Wall Street analysts have also cited massive buying of gold by central banks worldwide, which is currently much higher than the five-year average. When you add a weakening U.S. dollar, concerns over inflation, and continued significant demand from retail investors, the path of least resistance appears to be higher. Remember the anecdotal evidence of massive demand at retail giant Costco. Sales have continued to exceed all expectations, and the Epoch Times noted this in a recent post:
According to a recent survey, Costco shoppers are purchasing the store’s 1-ounce gold bars at a high rate despite the precious metal’s record-high prices in recent months. A Bloomberg survey found that around 77 percent of Costco outlets selling bullion bars sold out in the first week of October. The news outlet and financial services company surveyed 101 stores in 46 states that sell gold and recently restocked the precious metal.
We screened our 24/7 Wall St. commodity research database, looking for gold-mining stocks that pay big and reliable dividends. Three companies look like outstanding ideas now; all are rated Buy at the top firms we cover.
Why do we cover gold stocks?
Proper portfolio asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only can they hedge inflation, which, while currently lower, is still much higher than Federal Reserve targets, but they can also help if the market goes into correction or bear market mode, as they tend to trade inversely to markets trading down.
B2Gold
A Canadian mining company that owns and operates gold mines in Mali, Namibia, and the Philippines.
For those seeking high returns, this small-cap gold stock offers an exciting opportunity for sector exposure and pays a 5.16% dividend. B2Gold Corp. ( NYSE: BTG ) is a dynamic gold producer with three mines in Mali, the Philippines, and Namibia.
It also operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia.
The company also has a 25% interest in Calibre Mining and approximately 19% interest in BeMetals. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland.
Caledonia Mining
This is a cash-generative gold producer with a strong growth profile.
Investors receive a strong 4.13% dividend, and this stock could be poised to double from current trading levels. Caledonia Mining Corp. PLC ( NYSE: CMCL ) primarily operates a gold mine. It also explores and develops mineral properties for precious metals.
The company holds a 64% interest in the Blanket Mine, a gold mine located in Zimbabwe.
It also owns 100% interests in:
- The Maligreen project, a brownfield gold exploration project located in the Gweru mining district in the Zimbabwe Midlands
- The Bilboes, a gold deposit located to the north of Bulawayo, Zimbabwe
- Motapa, a gold exploration property located in Southern Zimbabwe
The company posted solid second-quarter gross revenues of $50.1 million, compared to $37.0 million in the second quarter of 2023, due to higher gold production and a higher gold price.
In addition, the gross profit was $22.9 million, a 109.8% increase from $10.9 million in Q2 2023, due to higher gold revenue and lower production costs.
Fortitude Gold
A U.S.-based gold producer targeting projects with low operating costs, high margins, and strong returns on capital.
Gold is printing all-time highs, and with a 9.36% dividend, this could be a great way to play the sector. Fortitude Gold Corp. (OTC: FTCO) is a U.S.-based gold producer targeting projects with low operating costs, high margins, and strong returns on capital.
The company's strategy is to grow organically, remain debt-free, and distribute substantial dividends.
Fortitude Golds Nevada Mining Unit consists of seven high-grade gold properties in the Walker Lane Mineral Belt and an eighth high-grade gold property in west central Nevada.
The Isabella Pearl gold mine is currently in production and is located on the Isabella Pearl mineralized trend. Nevada, U.S.A., is among the world's premier mining-friendly jurisdictions. The company recently announced receiving all regulatory approvals and permits to mine deeper in its Isabella Pearl deposit.
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