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Gold stocks that pay a dividend: A guide to investing in gold miners for income

Updated: Oct 30, 2023


Gold is a popular investment choice for many investors, as it is seen as a safe haven asset and a hedge against inflation. However, gold mining stocks can also be a good way to invest in gold, while also generating income through dividends.

Which gold-mining companies paid dividends in 2023?

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Many of the major players in the gold-mining industry offer dividends on their stocks, including:

  • Barrick Gold (GOLD)

  • Gold Resource (GORO)

  • Newmont (NEM)

  • GCM Mining (TPRFF)

  • Hecla Mining Company (HL)

  • DRDGOLD (DRD)


Why invest in gold stocks that pay a dividend?

There are several reasons why investors may choose to invest in gold stocks that pay a dividend.

  • Income: Dividends can provide investors with a steady stream of income. This can be especially beneficial for retirees or other investors who need to generate income from their investments.

  • Growth potential: Gold stocks can also have the potential for significant growth. This is because gold is a scarce resource, and its price tends to rise over time.

  • Diversification: Investing in gold stocks can help to diversify an investment portfolio. This is because gold stocks are not correlated to other asset classes, such as stocks and bonds.


How to choose the right gold stocks to invest in

When choosing gold stocks to invest in, there are a few factors to consider.

  • Company strength: It is important to invest in gold mining companies that are financially sound and have a good track record.

  • Dividend yield: The dividend yield is the percentage of the stock price that is paid out in dividends each year. A higher dividend yield is generally better, but it is important to consider the company's overall financial health and growth potential as well.

  • Risk tolerance: Gold mining stocks can be volatile, so it is important to have a risk tolerance that is appropriate for this type of investment.


Conclusion

Investing in gold stocks that pay a dividend can be a good way to generate income and potentially grow your wealth over time. However, it is important to do your research and choose stocks that are appropriate for your individual circumstances.


Additional tips for investing in gold stocks:

  • Consider investing in a basket of gold stocks, rather than just one or two. This will help to reduce your risk.

  • Rebalance your portfolio regularly to ensure that it still meets your investment objectives and risk tolerance.

  • Be prepared to hold your investments for the long term, as gold mining stocks can be volatile in the short term.


Join the ZTRADEZ Discord server for more information and discussion on gold stocks and other investment opportunities.


Please note that this is not financial advice. Please do your own research before making any investment decisions.

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