Four Dividend-paying Silver Investments to Buy as Share Prices Start to Fly

Four dividend-paying silver investments to buy as share prices start to fly could help investors profit from the ascent of precious metals as protection from inflation and multiple crises.

The four dividend-paying silver investments to buy are ascending toward the sky as investors try to guard against high inflation, a potential recession, elevated interest rates, big bank failures and Russia’s ongoing invasion of Ukraine. Silver is among the precious metals that traditionally serve as an asset to preserve wealth during tumultuous times.

Despite a 4% rise in silver prices since the start of 2023, further upside looks to be ahead later in 2023, according to a recent report from BofA Global Research. The investment firm forecasts that first-quarter 2023 earnings reports for precious metals companies will begin in late April with relatively weak production numbers holding back the share prices of certain miners. 

“Most companies in our coverage have guided to H2’23 (i.e., back-half weighted) production,” BofA wrote. “We do not expect negative guidance revisions — given the back-half weighted guides and that one quarter is normally too early to identify material deviations from plan. Metal prices were quite favorable in Q1’23, with gold averaging $1,892 per ounce (/oz), silver $22.55/oz and copper averaging $4.06 per pound (/lb), up 9%, 6% and 11% respectively vs. the Q4’22 average prices.”

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Four Dividend-paying Silver Investments to Buy Headlined by Hecla Mining

Hecla Mining Co. (NYSE: HL), of Coeur D’Alene, Idaho, achieved a 12.3% return since it was recommended in the Fast Money Alert trading service in January before it stopped out on Thursday, April 20. Fast Money Alert partners Mark Skousen, PhD, and seasoned investor Jim Woods recommended Hecla stock and related call options in an effort to tap into the soaring price of silver since late 2022.

Mark Skousen co-heads Fast Money Alert.

In fourth-quarter 2022, both gold and silver stabilized and began trending up sharply, lifting Hecla and other precious metals mining stocks. The Fast Money Alert partners opted to recommend Hecla at it broke out of a solidly bullish technical pattern with the stock soaring 40% in fourth-quarter 2022.

Chart courtesy of www.stockcharts.com

Hecla produces and explores silver, gold, lead and zinc. Its key silver mines include Idaho-based Lucky Friday and Greens Creek in Alaska. Hecla acquired 100% of Greens Creek from Rio Tinto plc (NYSE: RIO) in April 2008, after holding a 29% investment in the mine for 20 years.

“The acquisition doubled the company’s silver production, making it a leader in the silver mining industry,” Fast Money Alert wrote to its subscribers upon recommending Hecla.

Woods Weighs in Amid Four Dividend-paying Silver Investments to Buy

Jim Woods not only teams up with Skousen in Fast Money Alert, but he likes to recommend precious metals strategically in his Bullseye Stock Trader advisory service. Woods recommended a gold stock in the latter trading service recently, along with a related call option. The Bullseye Stock Trader service, offering recommendations of both stocks and options, had a double-digit-percentage gain in the stock during its first two weeks as a pick in his portfolio.

Jim Woods heads Bullseye Stock Trader.

Four Dividend-paying Silver Investments to Buy Feature Pan American Silver Corp. 

Silver producer Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS), of Vancouver, Canada, is among the miners expected to be rewarded by investors, BofA reported. Tailwinds for PAAS and some other precious metals miners will increase if oil prices fall later in the year, since fuel is a key “input cost,” an analyst with the investment firm wrote in a research note.

Pan American Silver Corp. also switched the listing of its stock to the NYSE from NASDAQ on Tuesday, April 18, and is a favorite choice of Michelle Connell, who heads Dallas-based Portia Capital Management. Even though the company is coming off a “rough” last 12 months as it fell 35%, Connell said the stock looks to be ripe to rise.

The company had weakness in production and initially Wall Street did not respond positively to its acquisition of Yamana Gold (NYSE: AUY) that was announced last year, Connell recalled. However, institutional investors, such as pension funds and endowments, have remained shareholders of the miner with potential benefits from the acquisition on the horizon, she added.

“These investors currently own 37% of the company’s stock,” Connell said. 

In March, the company missed reaching the consensus earnings estimates of the analysts who cover it, but Pan American Silver’s recent closing of its acquisition of Yamana Gold will add four mines to PAAS’s current operations.

Michelle Connell leads Dallas-based Portia Capital Management.

Pan American Silver Corp. Shines as One of Four Dividend-paying Silver Investments to Buy

“The merger will increase the company’s silver production by 63% and its gold production by 104%,” Connell said.

With that enhanced production capacity, Connell projects potential upside for PAAS during the next 12 to 18 months of 20-25%. With the market’s current volatility, Connell counseled against buying shares of the stock after a surge and suggested waiting for a pullback. She also mentioned dollar-cost averaging as another strategy to buy shares at different times to avoid the risk of purchasing at a short-term peak.

Despite the Canadian company’s move to the NYSE from NASDAQ, it also will remain listed on the Toronto Stock Exchange. Its management indicated that the “transformative transaction” with Yamana Gold will significantly increase the purchasing company’s scale for its silver and gold operations in Latin America.

“We believe the NYSE platform provides Pan American with the capital markets presence required to support our growing company,” said Michael Steinmann, president and CEO of Pan American.

John Tuttle, vice chairman of the NYSE Group, issued a statement saying, “We are thrilled to welcome Pan American Silver, a leading producer of precious metals in the Americas, to our NYSE community of world-class mining companies. We look forward to working with the Vancouver-based company for many years to come.”

Pan American has found a niche as a producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. The company also owns the Escobal mine in Guatemala that is currently not operating.

Chart courtesy of www.stockcharts.com

Four Dividend-paying Silver Investments to Buy: SSRM

SSR Mining Inc. (NASDAQ/TSX: SSRM), headquartered in Denver, Colorado, describes itself as a free-cash-flow-focused gold company with four mining operations located in the United States, Turkey, Canada and Argentina. Those operations, combined with a global pipeline of quality development and exploration assets, have helped the company during the last three years to produce an average of more than 700,000 gold-equivalent ounces annually.

SSRM has 10 analysts following it with an average price target of $21 a share, offering investors roughly 35% upside in the next 12-18 months, Connell counseled. For the past 10 years, the company has outperformed its peer group, she added.

“Another positive… is that the company does not overpay for acquisitions,” Connell continued.

The company, too small to be a senior gold miner and too big to fit neatly into the role as a junior gold miner, is characterized by BofA as a mid-tier gold producer.

SSRM seeks positive cash flow when pursuing other miners to purchase, Connell said. Since diversifying well beyond Argentina in 2014, the miner has consistently delivered production that beats expectations, she added.

Chart courtesy of www.stockcharts.com

One of Four Dividend-paying Silver Investments to Buy Faces Fallout

However, SSRM faces fallout due to the earthquake-related shutdown of its mine in Turkey, Connell said.

Connell told me she found it interesting that 16 hedge funds own the stock. One fund sold the stock in 2022 when it appeared fully valued. Since then, the same hedge fund bought shares again.

Key appeals of SSRM are its strong cash balance of $600 million, along with $4.1 billion in stockholders’ equity, Connell continued.

Four Dividend-paying Silver Investments to Buy Include VanEck Junior Gold Miners

VanEck Junior Gold Miners (NYSE Arca: GDXJ) is an ETF chosen by Connell, who leads Dallas-based Portia Capital Management. For those seeking an aggressive ETF with heightened risk and rewards due to its focus on junior gold miners, GDXJ offers “long-term upside potential,” Connell told me.

“Many countries are looking at moving away from the U.S. dollar,” Connell said. “This de-dollarization could lead to lower demand for U.S. securities. Lower demand for U.S. securities means higher interest rates will be needed to attract investors.”

Increased interest rates will “put a floor” under inflation, Connell counseled. She predicted that inflation would remain fairly high or exceed 2% going forward.

Chart courtesy of www.stockcharts.com

Geopolitical Risk Boosts Four Dividend-paying Silver Investments to Buy

“GDXJ has lower risk than its peers due to its high level of current investors and it trades almost 7.5 million shares a day” Connell continued. Such liquidity is important if investors want quick access to their money without taking a “haircut” on the seller’s proceeds, Connell added.

Rather than rush to buy silver or gold, investors could start with a small position and dollar-cost average into the position size that they think is warranted by current political uncertainty and inflation, Connell counseled. The top 10 holdings and their weightings in GDXJ are Pan American Silver Corp., 6.53%; Kinross Gold Corp. (NYSE: KGC), 5.35%; Alamos Gold Inc. Class A (NYSE: AGI), 4.58%; Endeavor Mining PLC (XTSE: EDV), 4.02%; and B2Gold Corp. (NYSE: BTG), 3.63%; Evolution Mining Ltd. (OTCMKTS: CAHPF), 3.43%; Industrias Penoles SAB de CV (OTCMKTS: IPOAF), 3.28%; Hecla Mining Co., 2.87%; SSR Mining Inc., 2.76% and Esisko Gold Royalties Ltd. (NYSE: OR), 2.50%.

Rich Checkan, president and chief financial officer of Rockville, Maryland-based Asset Strategies International, said he likes investing in silver for its “profit potential.” A Gold Silver Ratio (the amount of ounces of silver needed to buy one ounce of gold) near or above 80 suggests gold and silver are both “cheap,” Checkan opined. The ratio currently is 79.68.

The Silver Institute released its annual report suggesting the deficit in silver production over the last two years has been enough to offset the surpluses of the past 11 years. The institute also predicted another deficit this year, Checkan commented.

Rich Checkan, president of Asset Strategies International

NATO Secretary General Said Ukraine’s ‘Rightful Place’ Is in the Alliance

North Atlantic Treaty Organization Secretary General Jens Stoltenberg visited Ukraine on Thursday, April 20, for the first time since Russia’s invasion of its neighboring nation on Feb. 24, 2022, to discuss the potential addition of the war-ravaged country into the military alliance. He spoke with Ukraine’s President Volodymyr Zelensky about a “multiyear support initiative” to replace Soviet-era equipment with those meeting NATO standards. Stoltenberg also said Ukraine’s “rightful place is in NATO” and a discussion about such membership will be high on the alliance’s agenda at its summit this July.

Beside meeting with Stoltenberg, Zelensky appeared before Mexico’s Congress on April 20 via video to appeal for the nation’s support with its votes at the UN General Assembly and other international organizations. Such support will “defend the principles and objectives of the UN Charter and the territorial integrity of “Ukraine and all nations of the world,” Zelensky said. The Mexican lawmakers gave Zelensky a standing ovation both before and after his address.

Additional support for Ukraine came from a call the same day held between U.S. President Joe Biden and France’s President Emmanuel Macron. The two leaders also discussed Macron’s recent visit to China, as well as their ongoing efforts to “advance prosperity, security, shared values” and rules-based international order in the Indo-Pacific region. Both presidents also agreed that China had a “role to play” in contributing, in the medium term, to ending Russia’s invasion of Ukraine in keeping with the “principles and purposes” of the UN Charter.

However, Russia objects to Ukraine becoming a NATO member and threatened to retaliate against Finland for recently joining the alliance. Finland chose to join NATO in the wake of Russia’s invasion of Ukraine as a way to enhance its national defense.

“Finland is stronger and safer within the alliance, and the alliance is stronger and safer with Finland as its ally,” said U.S. Secretary of State Antony Blinken.

With a goal of avoiding a direct conflict with Russia, Finland President Sauli Niinistö said the country’s desire is to promote stability in Europe. Finland, along with Sweden, sought expedited NATO membership weeks after Russia invaded Ukraine on Feb. 24, 2022. In contrast to Finland, Sweden has been slowed in its progress to join NATO by dissent from Turkey.

CDC Shows Rising Vaccinations Against New Bivalent Variant of COVID-19

The U.S. Centers for Disease Control and Prevention (CDC) reported at least one vaccination against COVID-19 and its bivalent variant has been given to 269,971,358 people, or 81.3% of the U.S. population, as of April 19. Those who have completed the primary COVID-19 doses totaled 230,485,008 of the U.S. population, or 69.4%, according to the CDC. Also as of April 19, the United States had given a bivalent COVID-19 booster to 52,117,186 people who are age 18 and up, equaling 20.2% of America’s population. Medical studies have shown vaccinations help to keep people healthy and reduce the morbidity from contracting COVID, potentially boosting confidence of consumers to shop at stores, travel and otherwise spend money.

The four dividend-paying silver investments to buy offer investors ways to hedge against inflation, economic crises and other catastrophes. Those four dividend-paying silver investments to buy appear ripe to rise higher as 2023 advances, according to BofA and others who track the precious metal closely.