Gold stocks have done remarkably well this year during the COVID-19 pandemic. The price of gold hit 10-year historic highs earlier this year. Not only are investors attracted to the safety of gold during uncertain economic times, but central banks are committing to low interest rates.
Low interest rates drive concerns about inflation, further sparking interest in gold to protect the store of value in currency.
Here are three top gold stocks to consider buying in November 2020.
Barrick Gold: The number one gold stock to buy in November
Barrick Gold (TSX:ABX)(NYSE:GOLD) fell to $17.52 during the March market sell-off. Then bullish gold investors pushed the price up to a new 52-week high of $41.09. At the time of writing, investors are trading the stock for $33.22 per share. The annual dividend yield is a decent 1.40%.
Barrick Gold owns an interest in gold and copper properties in South America, the Middle East, Africa, Canada, and the United States. This gold stock has been of particular interest to investors since Warren Buffett’s Berkshire Hathaway made a large purchase of its stock. When the price of gold hit historic 10-year highs this year, Warren Buffett decided to get in on the action.
For this reason, many analysts have said that gold is safe with Warren Buffett as a major shareholder in Barrick Gold. Nevertheless, even this well-respected stock market guru has lost money on some of his investments. There is no guarantee that Barrick Gold will perform well over the next year.
Still, if you are looking for a top gold stock to buy in November, Barrick Gold is probably one of your best bets.
Kinross Gold: Improving margins for shareholders
Kinross Gold (TSX:K)(NYSE:KGC) fell to $4 during the March market sell-off. Nevertheless, the stock soared over the next few months to a 52-week high of $13.59. At the time of writing, investors are trading the stock for $10.03 per share. The 1.56% annual dividend yield is nothing to scoff at.
Kinross Gold explores for gold and silver in the United States, Russia, South America, and Africa. Kinross reported earnings on November 4. Kinross Gold increased its net earnings attributable to common shareholders to $559.1 million for the nine months ended in September from $197.1 million in 2019.
The gold company has been improving its margins above and beyond the boost from a rise in gold prices. If you are looking for a strong gold player to buy, Kinross Gold is a solid option.
B2Gold: Raising its dividend yield
B2Gold (TSX:BTO)(NYSE:BTG) fell to $3.12 during the March market sell-off before rebounding to a 52-week high of $9.99. At the time of writing, investors are trading the stock for $7.73 per share. The annual dividend yield is the highest of the three at 2.74%.
B2Gold produces gold in Asia and Africa. On November 3, B2Gold reported stellar earnings for the quarter ended in September. To celebrate, the firm announced in August a 100% increase in its quarterly dividend per share to $0.04.
B2Gold is a fantastic option if you are looking for a strong dividend yield in gold stocks. At almost 3%, a shareholder would be hard-pressed to find a high-yield savings account matching this yield in today’s low interest rate environment. Therefore, B2Gold is one of the top gold stocks to buy in November.
Check out these other great TSX stocks to buy in November:
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Fool contributor Debra Ray has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares).