Gold miners could become the rock stars of the investment world if the global outlook continues to inject fresh fear into the markets.
Traditionally, investors flock to quality when the markets get choppy, and with the sheer amount of economic disruptors massing on the horizon like a line of enemy tanks, safe-haven assets are the order of the day. Below are four of the very best gold stocks trading on the TSX to consider snapping up right now.
Returning 141% and easily outperforming the Canadian metals and mining industry’s 22% average for the same period, Kirkland Lake Gold (TSX:KL)(NYSE:KL) often makes the lists of the best gold stocks trading on the TSX. A 0.36% dividend yield is on offer, though the real reason to buy this stock is that positive momentum.
Kirkland Lake’s share price has doubled since the year began, which makes this one of the best money-spinners in the mining space.
A 0.95% dividend yield is welcome, but again, it’s not the main reason to buy shares in Barrick Gold (TSX:ABX)(NYSE:GOLD). The stock is likely to keep on climbing, especially if investors retreat further into safety between now and this time next year.
While recent positive developments in the U.S.-China trade war have seen a respite from the bearishness stalking the markets, investors might expect gold to pick up again should the dispute continue.
The 72% returns for the past 12 months again beats the average, though lags Kirkland Lake’s dizzying ascent. There’s plenty of growth ahead, though, with this key characteristic being one of the main reasons to get invested in Barrick.
Investors with a focus on value may want to note that Kirkland Lake trades with fairly high multiples, while Barrick trades only a shade over the industry average relative to its assets.
Paying a 1.46% dividend yield, Newmont Goldcorp (TSX:NGT)(NYSE:NEM) is the stock to go for if you want to accumulate some tasty passive income while waiting patiently for those long-term capital gains.
The stock represents one of the biggest players in precious metals investment, and along with Barrick, it’s one of the safest plays for gold upside in the long-term. Pundits are generally bullish on Newmont Goldcorp, and it’s very much still in expansion mode.
Positive results like these power precious metals investment and are one of the key signs that a miner is of investment grade.
The stock finished the week on a bit of a dip, so now is a good time to buy if a bargain stock with room to grow suits your investment style.
The bottom line
All four stocks are healthy with assured growth ahead, meaning that an investor can take their pick for long-term capital gains.
However, for upward momentum, Kirkland Lake has been looking especially attractive, while investors seeking a play for long-term stability should take both Barrick and Newmont Goldcorp into consideration.
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Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.