If you’re wondering about silver stocks that pay dividends, look no further — here are five with operations across the world.
Silver is a notoriously volatile market capable of wide price swings in either direction.
However, silver is also seen by many as a safe-haven investment and a hedge against inflation. While investing in silver bullion is one popular method for gaining exposure, silver-mining companies offer another route.
Silver-mining companies with strong balance sheets and experienced management teams are able to capitalize on high silver prices and weather the storm of low silver prices. Some of the most profitable silver-mining companies are even able to offer investors dividends, which may be appealing for those who are in it for the long haul.
A dividend is especially attractive in the often-unstable mining sector because it gives investors a degree of security: if a company pays a dividend, it generally feels that it has the cash to do so, and believes it will have the ongoing profits it needs to keep those payments coming.
Here’s a brief overview of five silver stocks that pay a dividend. Companies are listed in alphabetical order, and all data included was current as of August 4, 2022.
Market cap: GBP 4.98 billion; dividend yield: 3.34 percent
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 a portfolio of development 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 cash flow. Dividends from the company are paid in UK pounds sterling unless shareholders elect to be paid in US dollars. Fresnillo paid its final 2021 dividend of US$0.24 per share on May 27, 2022, and will pay its 2022 interim dividend on September 14, 2022.
Market cap: US$2.56 billion; dividend yield: 0.68 percent
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 mid-2018, expanding its portfolio with three high-grade gold mines in Nevada. More recently, Hecla gained access to the Keno Hill silver district, which has Canada's highest-grade silver reserves, with the planned acquisition of Alexco Resource (TSX:AXU,NYSEAMERICAN:AXU).
The silver stock pays an annual minimum common stock dividend of US$0.015 per share, distributing it on a quarterly basis at US$0.00375 per share. Hecla also pays a silver price-linked common stock dividend based on the company’s average realized silver price for the preceding quarter. Hecla’s most recent quarterly dividend payment amounted to US$0.00625 per share on June 10, 2022, and it will pay its next dividend on September 10, 2022.
Market cap: C$5.55 billion, US$4.29 billion; dividend yield: 1.95 percent
Founded by Ross Beaty in 1994, Pan American Silver currently operates several mines located in Mexico, Peru, Canada, Bolivia and Argentina. In addition, the miner owns the Escobal mine in Guatemala, which is currently working through community consultations to recommence operations. The company’s 2021 silver production came in at 19.2 million ounces; its 2022 guidance is set at 19 million to 20.5 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 between March 18, 2013, and March 13, 2015. The silver stock paid its most recent quarterly dividend on June 3, 2022, at US$0.12 per share.
Market cap: C$609.6 million, US$474.15 million; dividend yield: 0.92 percent
Silvercorp Metals has multiple silver-mining operations in China, and is focused on acquiring and growing underdeveloped projects with high upside. It sold about 6.3 million ounces of silver, 63.6 million pounds of lead and 26.8 million pounds of zinc in its 2022 fiscal year.
Silvercorp offers shareholders a semiannual dividend, which it states is “based on a number of factors including commodity prices, market conditions, financial results, cash flows from operations, expected cash requirements and other relevant factors.” Its most recent dividend was paid on June 24, 2022, at a rate of US$0.0125 per share.
Market cap: C$19.68 billion, US$15.19 billion; dividend yield: 1.77 percent
Last in this list of silver stocks that pay dividends is Wheaton Precious Metals, a well-known name in the silver space, largely because of its business model — it’s the world’s biggest 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 their metal production, mostly gold and silver.
The company currently has streaming agreements in place for 23 operating mines and 13 development-stage projects. It is interested in companies operating in politically stable jurisdictions, and states that its value should rise with the price of silver and gold. As a result, Wheaton sees itself offering investors multiple benefits while reducing many of the downside risks that traditional miners face.
Wheaton pays a quarterly dividend, and it reached a record level of US$0.15 per share on September 9, 2021. The company’s last dividend was paid on June 3, 2022, also at US$0.15 per share.
What are dividend stocks?
Dividend stocks regularly pay a sum of money to a class of shareholders out of the company's earnings. To qualify for a dividend payout, an investor must have owned the stock on the ex-dividend date.
Dividends are often issued as cash payments sent to a shareholder’s brokerage account, but can also be issued as stock or discounts on share purchases.
How to invest in dividend stocks?
Contact your broker to learn more about how to take advantage of companies offering dividend programs. Some dividend stocks may also offer a dividend reinvestment program, allowing shareholders to automatically buy new shares with their dividends, either commission-free or at a reduced cost.
How much do dividend stocks pay?
A company's board of directors is responsible for setting a dividend policy and will determine the size of the dividend payout based on the firm's long-term revenue outlook.
The size of an individual shareholder's dividend payout depends on the number of shares owned in that company. For example, if an investor owns 1,000 shares in Wheaton Precious Metals, which is currently paying a dividend of US$0.15 per share, they may get US$37.50 every quarter — or US$150 annually.
This is an updated version of an article originally published by the Investing News Network in 2015.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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