5 Dividend-Paying Gold Investments to Buy Now

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Dividend

Five dividend-paying gold investments to buy now are on the rise and showing no signs of stopping their ascent anytime soon.

The five dividend-paying gold investments have been lifted by the Federal Reserve’s easy-money policies, historically low interest rates and public statements by its chairman to pursue whatever steps are needed to aid the economy during the crisis caused by the new coronavirus, named COVID-19 by the World Health Organization. Gold has zoomed nearly 12.2% so far this year through May 6, in contrast to a pullback in stocks and silver.

WTI Crude Oil spot prices have plunged 66.5% thus far in 2020 but they had been down 80% the week before, so oil is showing early signs of recovery. The price of gold has climbed past $1,700 an ounce, and some prognosticators predict it could touch $2,000 or higher next year.

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Chart courtesy of www.YCharts.com

Toronto-based Barrick Gold (NYSE: GOLD) is up more than 50% in six weeks after its recommendation in the Five Star Trader advisory service led by Mark Skousen, PhD, an economist who also is a Presidential Fellow at Chapman University. Skousen, named winner of the inaugural Triple Crown in economics during 2018 and one of the 20 most influential living economists, recommended the gold mining stock and related call options on March 24.

5 Dividend-Paying Gold Investments to Buy Keep Climbing

Skousen also advised selling half of the call options he recommended in Five Star Trader for a 118% gain on April 14 and another half of the remaining position for a return of more than 213% on May 5. He boosted his stop price in GOLD to $25 a share on May 5 to prevent the double-digit-percentage gain from slipping away if the market retreats.

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Mark Skousen, PhD, in the middle, receives the “Triple Crown of Economics” from media mogul Steve Forbes. Skousen leads premium investment services that include Home Run Trader, Five Star Trader, TNT Trader and Fast Money Alert.
Photo credit: Paul Dykewicz

Toronto Mining Company Is One of Five Gold Investments to Buy

In 2019, Barrick Gold produced 5.5 million ounces of gold, achieved profit margins above 40% and earned $4 billion on revenues of $9.7 billion. Skousen, who has written his monthly Forecasts & Strategies investment newsletter for the past 40 years, also noted that Barrick Gold has $3.3 billion cash to help support its $5.5 billion in long-term debt.

TD Securities raised its rating of Barrick Gold to a “buy” on April 1, when the brokerage set a price target of $28. It marked the latest in a series of upgrades that included one from Deutsche Bank on March 26, when it initiated a “buy” on Barrick Gold, with a price target of $25.

The stock quickly exceeded increased price targets of $20 on March 17 by ScotiaBank GBM and of $22 on March 13 by UBS. Each heightened price target accompanied a boost of the respective investment firm’s rating on Barrick Gold, which offers a current dividend yield of 1.03%.

Chart courtesy of www.StockCharts.com

 5 Dividend-Paying Gold Investments Omit GLD

“The best way of taking advantage of an anticipated rise in the price of gold is by owning a stock,” said Hilary Kramer, host of a national radio program called “Millionaire Maker” and head of the Value Authority and GameChangers advisory services.

Barrick Gold is a “very solid” mining company, said Kramer, who added that she was a little surprised to see how limited the prospects were when she was looking for a gold stock to recommend. However, gold has soared almost unrelentingly in the past year.

Paul Dykewicz interviews money manager Hilary Kramer, whose premium advisory services include 2-Day Trader, Turbo Trader, High Octane Trader and Inner Circle.

SPDR Gold Shares (NYSE:GLD), the largest exchange-traded fund on Wall Street that is backed by physical gold, is up 33.2% in the past year to far outperform stocks. The fund offers one of the easiest ways to invest in gold, but income investors may be deterred, since it does not pay a dividend.

5 Gold Investments to Buy Now Include 2 from a Pension Fund Chairman

“I like having a position in physical gold,” said Bob Carlson, chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets. “I recommend owning it through iShares Gold Trust (IAU). It’s an ETF, so the investment is liquid. You can convert all or part of it into cash at any time and don’t have to worry about storage, insurance, etc.”

Chart courtesy of www.StockCharts.com

Carlson, who also leads the Retirement Watch advisory service, said investors who want to take a more speculative position with potentially higher return, but also bigger possible losses, should look at shares of gold mining companies, such as Barrick Gold and Newmont Corp. (NYSE:NEM). The latter stock offers a current dividend yield of 1.04%, while another income-payer is Franco-Nevada Corporation (NYSE:FNV), a gold royalty company with a yield of 0.72%.

Chart courtesy of www.StockCharts.com

Chart courtesy of www.StockCharts.com

Investors also could buy a managed, open-end gold mutual fund, Carlson said. The oldest is U.S. Global Investors Gold & Precious Metals Fund (USERX) but it does not pay a dividend and is down 7.2% so far this year. The fund invests in smaller mining companies and thereby is riskier than if it focused on larger mining operators, he added.

Chart courtesy of www.StockCharts.com

5 Gold Investments to Buy Now Feature a Gold Miners Fund

An alternative is an ETF, Van Eck Vectors Gold Miners (NYSE:GDX), providing its shareholders with a current dividend yield of 0.54%. GDX, the largest of the 11 ETFs that concentrate in gold mining company shares, tracks a market-cap weighted index of global gold-mining firms. The fund also includes miners whose businesses include precious metals in addition to gold to provide a bit of diversification. As the largest ETF in the gold-mining category, GDX is easy for investors to trade, Carlson advised.

Chart courtesy of www.StockCharts.com

Pension fund chairman Bob Carlson answers questions from Paul Dykewicz during an interview before social distancing due to COVID-19.

Federal Reserve Bank actions in recent weeks have helped to ease a U.S. liquidity crisis and should continue to do so, Carlson said. Demand for gold should remain and increase when the economy perks up, he added.

5 Dividend-Paying Gold Investments to Buy Confirmed by Market-Timing Indicator

Jim Woods, who heads the Successful Investing and Bullseye Stock Trader advisory services, said one of his most promising gold investments is iShares MSCI Global Gold Miners ETF (NASDAQ:RING), offering a current dividend yield of 0.68%. The ETF is recommended by Successful Investing, which uses a proprietary market-timing strategy that now shows a “buy” signal for gold. However, the indicator is warning to hold back from buying domestic and international equities in the wake of the market’s 30%-plus crash in March.

Chart courtesy of www.StockCharts.com

 

Paul Dykewicz met with Jim Woods to discuss new investment opportunities before COVID-19.

The Price of Gold Could Zoom to $3,000 an Ounce

Word from officials at mainstream institutions indicates that gold could zoom to $3,000 an ounce, said Rich Checkan, president and chief operating officer of Asset Strategies International, a full-service tangible asset dealer in Rockville, Maryland. The supply of retail, fabricated coins and bars still remains insufficient to keep up with demand, he added.

Plus, premiums to buy gold remain “considerably high,” Checkan told me. Deliveries of physical gold investments are starting to flow a bit faster than when airlines shutdown most of their flights upon the onset of the COVID-19 global pandemic, but they still are “quite slow” compared to normal times, he added.

A problem with gold ETFs and futures contracts is there are typically more shares or futures contracts sold than there is gold to back it up, Checkan said.

Rich Checkan, of Assets Strategies International, analyzes precious metals pricing.

5 Dividend-Paying Gold Investments to Buy Now Exclude Coins

Gold offers investors an “island of safety” in uncertain times, said Van Simmons, who leads David Hall Rare Coins in Santa Ana, California. Fortunately, he said, California is a state that has regarded coin dealers as “essential businesses” because they holder clients’ money for buying and selling gold.

Chart courtesy of www.YCharts.com

Such sales may be needed as people incur challenging times due to the COVID-19 economic crisis that has forced more than 33 million people to file for unemployment benefits, driving up the U.S. jobless rate since the pandemic hit America earlier this year. Roughly 21% – more than 1 in 5 – of all Americans who had a job in February have filed for government assistance.

The number of cases and deaths worldwide due to the virus had rocketed to 4,012,684 and 276,213, respectively, as of May 8. On that date, America’s COVID-19 caseload totaled 1,321,785 with the death toll reaching 78,615. No other country in the world has nearly as many cases or deaths due to the virus.

Van Simmons, of David Hall Rare Coins, said physical gold offers an “island of safety” but no dividends.

People seeking rising investments while the stock market remains volatile need look no further than gold right now. Gold is climbing in value, beating stocks handily and shining as brightly as the precious metal has in many years to sidestep market uncertainty and notch double-digit percentage profits.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. Endorsements for the book come from Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Dick Vitale and others. Follow Paul on Twitter @PaulDykewicz.

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