Dividend-paying stocks are a primary target for many investors. The same would go for gold stocks with dividends, although these investments are much harder to come by.
It’s not impossible to find gold stocks with dividends, but other investments may make even better sense. We discuss this and other recommendations for investing in precious metals below.
Looking for gold stocks with dividends
If you truly want to own gold investments, the best way of going about it is by looking into gold mining companies. Mining companies may provide a broader base of operations, while also having multiple mines with steady production.
Investing in a gold mining ETF is even more attractive for risk-averse investors. Gold ETFs involve a basket of gold mining companies, making it easier to generate income from these stocks.
Investors interested in gold stocks for dividends should avoid other types of gold investing, like gold bullion or coins. Gold bullion does not make for a profitable investment because there are associated fees with owning the physical gold, including insurance and storage requirements.
Investing in precious metals other than gold
Aiming for a dividend yield with stock investments is a priority for many investors. However, gold may not be the best precious metal to invest in if dividends are your main goal. For instance, copper is a precious metal that tends to be cheaper to invest in than gold, and copper stocks tend to pay a higher dividend yield than many gold investments. There are also many industrial uses for copper. The lower price and the many uses of copper make it less risky overall than gold investing, so be sure to consider this precious metal for your portfolio as well.
Silver is another precious metal that tends to trade lower than gold, and it also has many industrial uses, from dentistry to automotive parts. Investing in silver ETFs that focus on mining can move higher in the future, especially if economic instability rears its head. The value of precious metals like silver tends to go up when currency like the US dollar drops in value.
Considerations to make while looking for top resource stocks, like gold stocks with dividends
As previously mentioned, it is possible to find gold stocks with dividends, even though it may not be as easy as finding dividend-paying stocks in other market sectors. There are some gold stocks worth considering, however, especially ones with a history of dividend payments.
One gold stock with dividends over a long period is Agnico Eagle Mines. This Canadian miner has mines in operation throughout Canada, Mexico, and Finland. This company has paid a dividend every year since 1983, making it an ideal candidate to buy. Shares of this company continue to go up, so savvy investors should consider it sooner rather than later.
Is gold the primary precious metal you have an interest in? Have you considered other precious metals like silver or copper, which tend to have more industrial uses than gold?