TSI’s Scott Clayton has identified a selection of dividend-paying gold stocks, each showing promising growth trajectories. Our comprehensive TSI Dividend Sustainability Rating System suggests these stocks are strategically aligned for expansion, especially as global geopolitical circumstances continue to elevate gold’s appeal.
These seven standout gold mining companies blend solid dividend track records with formidable market presence and growth prospects. They have a history of reliable dividend distributions and maintain the financial robustness needed to boost shareholder returns in the current economic climate.
Our curated list encompasses one of the world’s top gold producers, multiple Toronto-based firms with promising outlooks, and a pair of Vancouver-headquartered operations offering both growth potential and dependable dividends. Our evaluation indicates that as global uncertainties persist and the mining sector strives for enhanced productivity, these high-yielding gold stocks represent attractive investment opportunities to leverage prevailing market conditions.
Excerpt from theglobeandmail.com.
What are we looking for?
Dependable dividends from gold stocks bolstered by economic uncertainty – and gold’s traditional appeal as a safe haven.
The screen
Gold dipped this week ahead of the U.S. Federal Reserve’s latest rate decision. Still, investors worried about geopolitical events like the wars in Ukraine and Gaza – and, yes, tariff fears – are helping to keep prices near all-time highs. The yellow metal’s continuing role as a hedge against inflation further boosts its current appeal.
Nonetheless, widespread global peace and the relatively slow rollback of U.S. interest rates could tamp down gold prices in the short term.
Regardless, TSI’s analyst team continues to see value in holding gold mining stocks, in particular. We point to sustainable dividend income for investors as well as the mining industry’s push to increase productivity.
We started our search with a list of Canadian gold producers offering dividends. We then singled out those with strong production and cash flow, before applying our TSI Dividend Sustainability Rating System. It awards points to a stock based on key factors:
- One point for five years of continuous dividend payments – two points for more than five
- Two points if it has raised the payment in the past five years
- One point for management’s commitment to dividends
- One point for operating in non-cyclical industries
- One point for limited exposure to foreign currency rates and freedom from political interference
- Two points for a strong balance sheet, including manageable debt and adequate cash
- Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
- One point for an industry leader
Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.
More about TSI Network
TSI Network is the online home of The Successful Investor Inc. – the group of widely followed Canadian investment newsletters by editor and publisher Pat McKeough. They include our award-winning flagship newsletter, The Successful Investor, and the TSI Dividend Advisor. TSI Network is also affiliated with Successful Investor Wealth Management.
Striking Gold: 7 Dividend-Paying Gold Stocks
What we found
Our TSI Dividend Sustainability Rating System generated seven stocks:
Barrick Gold Corp. , headquartered in Toronto, is the second-largest gold miner in the world (after Newmont Corp.).
In addition, the following four firms, also based in Toronto, offer great prospects for savvy precious-metal investors: Alamos Gold Inc. , Agnico-Eagle Mines Ltd. , Centerra Gold Inc. and Kinross Gold Corp. .
B2Gold Corp. and Lundin Gold Inc., two Vancouver-headquartered firms, also make the grade for gold-stock investors seeking share-price growth and sustainable dividends:
We advise investors to do additional research on investments we identify here.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.