Mining stocks have historically been a popular choice for investors looking to gain exposure to the natural resources sector. Not only do these stocks offer the potential for capital appreciation, but many also pay dividends to investors. In times of high inflation, mining stocks can be particularly attractive, as the value of the underlying commodities tends to increase along with inflation. In this article, we’ll take a closer look at some of the mining stocks that have performed well during times of high inflation and pay dividends to investors.

One mining stock that has performed well during times of high inflation is Barrick Gold Corporation (GOLD). Barrick Gold is one of the largest gold mining companies in the world, with operations in North America, South America, Africa, and Australia. The company has a long history of generating strong returns for investors, particularly during periods of economic uncertainty.

Over the past decade, Barrick Gold has consistently outperformed the S&P 500 Index, delivering a total return of 176.3% compared to the S&P 500’s return of 207.4%. During this same period, the company has also paid out a dividend, which has grown steadily from $0.20 per share in 2010 to $0.42 per share in 2020. In 2021, Barrick Gold declared a dividend of $0.09 per share per quarter, which translates to an annual dividend yield of around 1.7% based on the current stock price.

Another mining stock that has performed well during times of high inflation is Freeport-McMoRan Inc. (FCX). Freeport-McMoRan is a leading producer of copper, gold, and molybdenum, with operations in North and South America, Indonesia, and Africa. The company has a long history of generating strong returns for investors, particularly during periods of economic uncertainty.

Over the past decade, Freeport-McMoRan has consistently outperformed the S&P 500 Index, delivering a total return of 354.3% compared to the S&P 500’s return of 207.4%. During this same period, the company has also paid out a dividend, which has fluctuated over time but has generally been in the range of $0.05 to $0.10 per share per quarter. In 2021, Freeport-McMoRan declared a dividend of $0.075 per share per quarter, which translates to an annual dividend yield of around 1.5% based on the current stock price.

One final mining stock worth considering is Newmont Corporation (NEM). Newmont is one of the largest gold mining companies in the world, with operations in North America, South America, Australia, and Africa. The company has a long history of generating strong returns for investors, particularly during periods of economic uncertainty.

Over the past decade, Newmont has consistently outperformed the S&P 500 Index, delivering a total return of 283.8% compared to the S&P 500’s return of 207.4%. During this same period, the company has also paid out a dividend, which has grown steadily from $0.30 per share in 2010 to $1.40 per share in 2020. In 2021, Newmont declared a dividend of $0.55 per share per quarter, which translates to an annual dividend yield of around 3.3% based on the current stock price.

To gain access to these mining stocks, investors can purchase shares through a broker account. Many online brokerages offer low-cost trading fees and easy-to-use platforms for buying and selling stocks. Some popular brokerages include Robinhood, E*TRADE, TD Ameritrade, and Fidelity. It’s important to do

your due diligence and research each brokerage to determine which one best suits your needs.

In addition to purchasing shares of individual mining stocks, investors can also gain exposure to the sector through exchange-traded funds (ETFs) that focus on mining companies. For example, the VanEck Vectors Gold Miners ETF (GDX) holds a diversified portfolio of gold mining stocks, including Barrick Gold, Newmont, and other companies in the sector. The ETF has delivered a total return of 250.2% over the past decade and currently pays a dividend yield of around 0.7%.

When investing in mining stocks, it’s important to keep in mind that the sector can be volatile and subject to fluctuations in commodity prices. Investors should consider diversifying their portfolio and not rely solely on one stock or sector. It’s also important to consider the tax implications of investing in dividend-paying stocks, as dividends are generally taxed as ordinary income.

In terms of performance during times of high inflation, mining stocks can be a good hedge against inflation due to their exposure to commodities like gold and copper, which tend to hold their value during periods of economic uncertainty. However, investors should also consider other factors that may affect the price of mining stocks, such as geopolitical risk, supply and demand dynamics, and company-specific factors like production costs and management decisions.

In conclusion, mining stocks can be a good choice for investors looking to gain exposure to the natural resources sector and potentially earn a dividend. Stocks like Barrick Gold, Freeport-McMoRan, and Newmont have a history of outperforming the broader market and paying out dividends to investors. By doing your research and diversifying your portfolio, you can potentially earn strong returns while managing risk in the volatile mining sector.

We see Barrick Gold as a potential breakout long candidate to make a move back to all time highs (ATH)

BARRICK GOLD: GOLD