If you’re wondering about silver stocks that pay dividends, look no further — here are five with operations in various parts of the world.
As of mid-November, the silver price was down over 10 percent year-to-date. While market watchers had been hoping to see the white metal trend upward for the year, it’s still got a long way to go to reach highs seen in 2011.
That’s why some investors are looking at 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. Companies are listed in alphabetical order. If we missed a dividend-paying silver stock, please let us know in the comments.
1. Fresnillo (LSE:FRES)
Market cap: US$6.74 billion
Major miner 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.”
This silver stock pays two dividends per year, and its dividend policy takes business profitability and underlying earnings growth into account, as well as capital requirements and cashflow. It paid its final 2017 dividend of US$0.298 per share on June 4, 2018, and its 2018 interim dividend came in at US$0.107 per share on September 7, 2018.
2. Hecla Mining (NYSE:HL)
Market cap: US$1.19 billion
Hecla Mining is the largest primary silver producer in the US, as well as an emerging gold producer. It is the oldest precious metals miner in North America, and owns operating silver mines in the US and Mexico, as well as a Quebec-based gold mine. The company acquired Klondex Mines in July 2018, expanding its portfolio with three high-grade gold mines in Nevada.
The company’s most recent quarterly dividend payment came to US$0.002 per share on August 23, 2018, with the next one due on November 20, 2018 for the same amount. Its highest dividend payment on record is US$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. The silver stock also pays an annual minimum common stock dividend of US$0.01 per share.
3. Pan American Silver (TSX:PAAS,NASDAQ:PAAS)
Market cap: US$2.69 billion
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 2017 revenue came to US$816.8 million, and its silver production came in at 25 million ounces that year. Its 2018 guidance is 25 to 26.5 million ounces.
The highest dividend Pan American has ever paid is US$0.125 per share, and it was able to pay a dividend of that amount a noteworthy nine times in a row. The first time was March 18, 2013 and the last time was March 13, 2015. The silver stock paid its most recent quarterly dividend on November 6, 2018. The payment came to US$0.035 per share, the same as its other two payments in 2018.
4. Silvercorp Metals (TSX:SVM,NYSEMKT:SVM)
Market cap: US$441.27 million
Silvercorp Metals has multiple silver operations in China, and is focused on acquiring and growing underdeveloped projects with high upside. It sold 1.5 million ounces of silver, 700 ounces of gold, 15.8 million pounds of lead and 6.4 million pounds of zinc in the third quarter of the 2018 fiscal year.
The silver stock put its dividend back in place in November 2016, and credited its reinstatement to an improved cash position and better financial results. While the dividend was initially set to C$0.01 per share to be distributed semiannually, the company recently increased the rate by switching from Canadian dollars to US dollars. Its most recent dividend was dispensed on or before June 8, 2018 at an increased rate of US$0.0125 per share.
5. Wheaton Precious Metals (TSX:WPM,NYSE:WPM)
Market cap: US$9.34 billion
Wheaton Precious Metals 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 17 operating mines and nine 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, Wheaton Precious Metals sees itself as offering investors multiple benefits while reducing many of the downside risks that traditional mining companies face.
Wheaton Precious Metals pays a quarterly dividend, and its highest was US$0.14 per share on April 12, 2013. So far this year it has paid three dividends — its Q3 dividend was US$0.09 per share.
What’s your favorite silver stock? Does it pay a dividend?
This is an updated version of an article originally published by the Investing News Network in 2015.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.