As one of my top picks for investors seeking exposure to rising gold prices, Barrick Gold (TSX:ABX) (NYSE:GOLD) actually has shown an ability to be an excellent income holding in a long-term investor portfolio, adding to the reasons to own this stock over the long haul. After beating earning estimates this past quarter, Barrick announced a dividend income of 14%, surprising investors (in a good way).
Barrick is a world-class gold company with operations around the globe and one of the best portfolio of reserves and mining operation of its peers. The ability of Barrick to ramp up production at existing minds and develop out new assets it acquires over time provides an excellent baseline for growth and impressive rising cash flow forecasts over the long term.
Thus, from a dividend growth perspective, assuming a stable or rising price of gold, Barrick is in an excellent position too continue to grow its dividend considerably over time, a key fundamental factor dividend investors should consider.
Though Barrick’s overall yield may appear to be microscopic at first glance, Barrick still provides a yield which is higher than long bonds, with a long-term growth rates bonds are unlikely to provide.
Accordingly, I'd recommend income investors seeking defensiveness consider Barrick as a buy-and-hold opportunity in this current low interest rate environment.
Invest wisely, my friends.
