As of April 24, 2017 the silver price was up by 12.72 percent since the start of the year. However, there’s still a long way to go for the white metal. That’s why some investors are looking to the top silver stocks that pay dividends.
A dividend is a sum of money that is paid regularly by a company to a class of its shareholders out of its earnings. Dividends are often issued as cash payments, but can also be issued as stock or other property.
With that in mind, here’s a brief overview of five silver stocks that pay dividends. They may be worth some attention as the silver price continues to rise.
A list of 5 silver stocks that pay dividends
1. Silver Wheaton (TSX:SLW,NYSE:SLW)
Silver Wheaton is a well-known name in the silver space, largely because of its business model — it’s the world’s largest precious metals streaming company, which means that it’s made upfront payments to a variety of companies in order to gain the right to purchase, at a low, fixed cost, all or a portion of the companies’ silver and gold production.
The company currently has streaming agreements in place for 22 operating mines and eight development-stage projects. It is interested in companies operating in politically stable jurisdictions, and states that it has growth potential as well as “[l]everage to increases in the price of silver and gold.” As a result, Silver Wheaton sees itself as offering investors multiple benefits while reducing many of the downside risks that traditional mining companies face.
The highest dividend paid by Silver Wheaton was $0.14 per share on April 12, 2013. Silver Wheaton is one of the most lucrative silver stocks that pay dividends. Most recently, it paid its first quarterly dividend of 2017 of $0.07 per share. The dividend was equal to 20 percent of the company’s average cash generated by operating activities over the last four quarters, divided by its outstanding shares at the time the dividend was approved.
2. Pan American Silver (TSX:PAA,NASDAQ:PAAS)
Founded by Ross Beaty in 1994, Pan American Silver currently has seven mines in Mexico, Peru, Bolivia and Argentina, plus six development projects in the US, Mexico, Peru and Argentina. Its 2016 revenues came to $774.8 million, and its silver production decreased slightly from 26.12 million ounces in 2015 to 25.42 million ounces in 2016.
The highest dividend Pan American has ever paid is $0.125 per share.While that’s lower than Silver Wheaton’s highest dividend, Pan American was able to pay a dividend of that amount a noteworthy nine times in a row, with the first time being March 18, 2013 and the last time being March 13, 2015.
The company paid its most recent quarterly dividend on March 10, 2017. The payment came to $0.025 per share, up from $0.0125 per share in 2016.
3. Fresnillo (LSE:FRES)
Fresnillo bills itself as the world’s leading primary silver producer. Its precious metals assets include the largest primary silver mine in the world, as well as an “exceptional portfolio of development projects and exploration prospects.”
The company pays two dividends per year, and its dividend policy takes business profitability and underlying earnings growth into account, as well as capital requirements and cash flow. It paid its 2016 interim dividend of $0.086 on September 9, 2016, and will pay its final 2016 dividend of $0.215 on May 26, 2017.
4. Tahoe Resources (TSX:THO,NYSE:TAHO)
Tahoe Resources operates the Guatemala-based Escobal mine, which is the third-largest silver mine in the world. As of December 2016, proven and probable mineral reserves for the mine sat at 29.1 million tonnes at an average silver grade of 332 g/t containing 310 million ounces of silver.
5. Hecla Mining (NYSE:HL)
Hecla Mining is one of the silver stocks that pay dividends. In addition to being the the largest primary silver producer in the US, Hecla is also an emerging gold producer. It is the oldest precious metals miner in North America, and owns two primary silver mines in Alaska, Mexico and Idaho, as well as a Quebec-based gold mine.
Hecla’s most recent quarterly dividend payment came to $0.002 per share on March 2, 2017. Its highest dividend payment on record is $0.0125 per share, last paid on March 25, 2013. The company’s dividends are based on its average realized silver price for the preceding quarter; it also pays an annual minimum common stock dividend of $0.01 per share. More details can be found on Hecla’s website.
This article was originally published by the Investing News Network in September, 2015.
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.