As of August 15, 2017, the silver price was up about 5.5 percent since the start of the year. While market watchers have been pleased to see the white metal move up, it’s still got a long way to go.
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 descending order by market cap — if we missed a dividend-paying silver stock, please let us know in the comments!
1. Fresnillo (LSE:FRES)
Market cap: US$14.4 billion
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 US$0.086 per share on September 9, 2016, and its final 2016 dividend of US$0.215 per share on May 26, 2017. Fresnillo’s 2017 interim dividend payment is scheduled for September 8, 2017 at a rate of US$0.106 per share.
2. Wheaton Precious Metals (TSX:SLW,NYSE:SLW)
Market cap: US$8.11 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 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, 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 to date was US$0.14 per share on April 12, 2013. So far this year it has made two dividend payments — its Q1 and Q2 dividends were both US$0.017 per share.
3. Pan American Silver (TSX:PAAS,NASDAQ:PAAS)
Market cap: US$2.7 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 2016 revenues came to US$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 US$0.125 per share. While that’s lower than Wheaton Precious Metals’ 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 June 5, 2017. The payment came to US$0.025 per share, up from US$0.0125 per share in 2016.
4. Hecla Mining (NYSE:HL)
Market cap: US$1.89 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 two primary silver mines in Alaska, Mexico and Idaho, as well as a Quebec-based gold mine.
The company’s most recent quarterly dividend payment came to US$0.002 per share on May 22, 2017. 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; it also pays an annual minimum common stock dividend of US$0.01 per share.
5. Silvercorp Metals (TSX:SVM,NYSEMKT:SVM)
Market cap: US$463.61 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, 900 ounces of gold, 15.9 million pounds of lead and 5 million pounds of zinc in the first quarter of the 2018 fiscal year.
The company 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 semi-annually, the company recently increased the rate by switching from the Canadian dollar to the US dollar.
This is an updated version of an article originally published by the Investing News Network in 2015.
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Securities Disclosure: I, Sivansh Padhy, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Silvercorp Metals is a client of the Investing News Network. This article is not paid-for content.
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