2 Gold Stocks With Huge Dividend Yields

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Gold stocks have retreated a few steps this week alongside almost everything else in the market these days. Without a doubt, gold is set to rise with all the inflation, geopolitical risks, and fragility in the broader stock and bond markets. Although gold has seemed sluggish lately, it is still remarkable that it has held up much better than other assets, including cryptocurrencies.

Indeed, the cryptocurrency crash was a major story this week. Those who held digital tokens instead of gold were put in a very bad spot. While they might be touted as “new age gold,” I think this recent selloff makes it clear that crypto is a speculative asset that adds risk, not an asset that hedges risk.

At the time of writing, gold is hanging there at US$1,820 an ounce. While a liquidity crunch could cause gold and other assets to be hit even harder in the coming weeks, I still think gold is one of the best places to stash your wealth in this vicious storm of volatility.

So if you’re ready to get back into gold, consider the following two Canadian gold miners.

Barrick Gold

Barrick Gold (TSX:ABX)(NYSE:GOLD) is an excellent gold miner familiar to many Canadians. It was the one that Warren Buffett’s firm tried a few years ago. Although Buffett himself would probably never touch gold or any other precious metal with a barge pole, given his comments about the asset’s lack of productivity, I think most investors can find safety with the asset in the current inflationary environment.

The US Federal Reserve is poised to raise rates, perhaps faster than many expect. The impact on the stock, bond and crypto markets has been absolutely horrific. Although Barrick stock has not been immune to the recent drop, I believe the latest decline is unwarranted. Why? Gold has held up much better than almost everything else (other than oil), and it likely has a way back to US$2,000 an ounce.

Either way, ABX stock is down around 19% from its peak, with a dividend yield that has ballooned to 1.92%, making Barrick stock an intriguing and productive way to bet. on gold. Yes, Barrick will amplify gold’s daily moves, but if you’re looking for great cover at a time like this, it’s hard to top the $47.25 billion miner.

Agnico Eagle Mines

Agnico Eagle Mines (TSX:AEM)(NYSE:AEM) is another top gold miner on the TSX index. The miner, which has operations in Canada, Mexico and Finland, recently walked away with a good deal in Kirkland Lake. While the deal won’t pay off overnight, I think the asset makes Agnico a much more exciting company. The $23.1 billion gold miner saw its shares fall 4.6% on Thursday to around $50.61 per share. Falling gold prices had a lot to do with it, given the firm’s greater sensitivity to the bright yellow metal.

Now down around 40% from its peak, AEM stock is looking like a gaudy bargain. The dividend yield of 3.16% is incredibly generous for investors. Although the payout is stretched, it is unlikely to be stretched to breaking point amid macro uncertainties.

Garland K. Long