Silver is a notoriously volatile market capable of wide price swings in either direction. 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
. 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.
Here’s a brief overview of five silver stocks that pay a dividend. Companies are listed in alphabetical order; if we missed any silver-mining stocks that pay dividends, please let us know in the comments.
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1. Fresnillo (LSE:
FRES
)
Market cap: GBP$6.5 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 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 are paid in UK pounds sterling unless shareholders elect to be paid in US dollars.
Fresnillo paid its interim 2020 dividend of US$0.023 per share on September 16, 2020, and will pay its 2020 final dividend of US$0.235 per share on June 30, 2021.
2. Hecla Mining (NYSE:
HL
)
Market cap: US$4.63 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 mid-2018, expanding its portfolio with three high-grade gold mines in Nevada.
The company’s most recent quarterly dividend payment came to US$0.011 per share on May 19, 2021. From its dividend payments
on record
, its highest was at 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$0.045 per share.
3. Pan American Silver (TSX:
PAAS
,NASDAQ:PAAS)
Market cap: US$7.09 billion
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 not in operation. The company’s 2020 silver production came in at 17.3 million ounces; its 2021 guidance is set at 19.43 million to 20.55 million ounces.
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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 7, 2021, at US$0.07 per share.
4. Silvercorp Metals (TSX:
SVM
,NYSEAMERICAN:SVM)
Market cap: C$1.28 billion
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, 67.1 million pounds of
lead
and 27.9 million pounds of
zinc
in the
2020 fiscal year
.
Although once suspended, 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 increased the rate by switching from
Canadian dollars to US dollars
in 2017. Its most recent dividend was paid on November 10, 2020, at a rate of US$0.0125 per share.
5. Wheaton Precious Metals (TSX:
WPM
,NYSE:WPM)
Market cap: US$25.6 billion
Last in our 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 silver and gold production.
The company currently has
streaming agreements
in place for 23 operating mines and eight 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 its highest was US$0.14 per share on April 12, 2013. The company’s
last dividend
was recorded on May 21, 2021, to be paid on June 3, 2021, at US$0.14 per share.
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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