Silver Prices Are Recovering, It’s Safe to Hold These Dividend-Paying Silver Stocks Now

白银奋起直追
Published on: May 16, 2024
Author: Caroline Kong

Silver price rallied on Wednesday, as the US Consumer Price Index (CPI) was lower than expected, leading to a plunge in US Treasury yields. The price of the COMEX silver futures contract closed at $29.73 per ounce, gained more than 3.80%.

Right now, more and more analysts believe that once the silver price breaks through $30 per ounce, it’s highly possible it will continue to rise.

Silver prices are typically more volatile compared to gold. However, silver mining companies with strong balance sheets and experienced management teams have often been able to capitalize on rising silver prices and weather price declines. Some of the most profitable silver mining companies have even been paying dividends to shareholders for a long time, which is good protection for investors.

Here are five silver stocks that are paying dividends, ranked by market capitalization, for investors to consider.

1. Wheaton Precious Metals (TSX:WPM,NYSE:WPM)

Wheaton Precious Metals is the world’s largest precious metals streaming company. Its business model differs from that of a traditional mining company. Wheaton pays up front to a number of metals companies for the right to purchase all or a portion of those companies’ future metals at a fixed discounted price.

The company currently has flow-through agreements for 18 operating mines and two development stage projects. The value of these projects has increased as silver and gold prices have risen. And Wheaton itself is largely insulated from many of the downside risks faced by traditional mining companies.

The precious metals stock pays a quarterly dividend, which reached $0.15 per share on 9 September 2021 then remained there for several years, with the latest dividend paid on 15 April 2024 exceeding that level. The company has a market cap of C$33.44 billion and a dividend yield of 1.11%.

2. Pan American Silver(TSX:PAAS,NASDAQ:PAAS)

Founded in 1994, Pan American Silver currently operates multiple mines in Mexico, Peru, Canada, Bolivia, and Argentina. Last year, the company successfully acquired Yamana Gold, adding the latter’s four producing assets in Latin America to its portfolio, reported 20.4 million ounces of silver production in 2023.

From 18 March 2013 to 13 March 2015, Pan American Silver paid nine consecutive dividends of $0.125 per share. This silver stock’s most recent quarterly dividend payment was on 15 March 2024 and it paid $0.10 per share, for a dividend yield of 2.09%.

3. Fresnillo (LSE:FRES)

Fresnillo is a leading primary silver producer with precious metal assets including the Fresnillo Mine, the world’s largest primary silver mine with 2023 silver production of 56.3 million ounces.

This silver stock pays a bi-annual dividend, and its dividend policy takes into account the profitability of the business and underlying earnings growth, as well as capital requirements and cash flow. Fresnillo paid an interim dividend of 1.1058 pence (or $0.014) on 14 September 2023, and is also due to pay a 3.4059 pence (or $0.042) 29 May 2024. Fresnillo has a current market capitalization of £4.92 billion and a dividend yield of 2.03%.

4.Hecla Mining (NYSE:HL)

Hecla Mining is the largest primary silver producer in the U.S. and an emerging gold producer with operating silver mines in the U.S. and Mexico, as well as a gold mine in Quebec. With the acquisition of Alexco Resource in 2022, the company gained a leading position in the Keno Hill silver district in Canada, which holds the highest grade silver reserves in Canada. The company reported 2023 silver production of 14.3 million ounces.

On 25 March 2024, Hecla paid a quarterly cash dividend of $0.00625 per common share. On 1 April 2024, the company paid a quarterly cash dividend of $0.875 per preferred share.

5. Silvercorp Metals (TSX:SVM,NYSE:SVM)

Silvercorp Metals owns several silver operations in China and is focused on acquiring and developing undeveloped projects with high growth potential. The company’s silver equivalent production in fiscal 2024 was approximately 6.8 million ounces, a decrease of 2 per cent from the previous year.

This silver stock pays a semi-annual dividend to shareholders, which increases or decreases based on factors including commodity prices, market conditions, financial performance, cash flow from operating activities, expected cash requirements and other relevant factors. The most recent dividend was paid on 15 December 2023 and was $0.0125 per share with a dividend yield of 0.70%.

Dividend Yielding Stocks Mining Precious Metals Silver