Is Barrick Gold Corporation (GOLD) the Best Foreign Dividend Stock to Buy According to Analysts?

Barrick Gold Corporation (NYSE:GOLD) has been a standout performer in the gold mining sector, with analysts praising its dividend history, growth prospects, and cost management strategies. As of February 12, 2025, Barrick Gold's dividend yield is 2.29%, which is higher than the industry average of 1.87%. The company has paid dividends for over 30 consecutive years, demonstrating a strong commitment to shareholder returns. Barrick Gold's dividend yield is backed by a conservative payout ratio of 30%, indicating room for future growth.

Barrick Gold's financial stability is evident in its strong balance sheet, with a healthy debt-to-equity ratio of 0.368953. The company's market capitalization of $31.85 billion makes it the largest gold mining company globally, providing economies of scale and bargaining power with suppliers. Barrick Gold's dividend growth can be attributed to its effective cost management strategies. The company has significantly reduced its all-in sustaining costs (AISC), reporting an AISC of $XXX per ounce in our latest analysis, well below the industry average of $XXX per ounce. This reduction in AISC allows Barrick Gold to maintain its dividend payments even when gold prices fluctuate, as the company can still generate profits at lower gold price points.

Barrick Gold's dividend growth is supported by its strong cash flow generation. The company has increased its dividend for X consecutive years, reflecting its ability to generate cash from operations. Barrick Gold's dividend growth is also supported by its conservative payout ratio, which leaves room for future increases. The company's dividend growth prospects are further enhanced by its strong production profile and asset portfolio. Barrick Gold's production profile is characterized by a diverse mix of gold and copper mines, with a focus on low-cost, high-margin operations. The company's asset portfolio includes a number of high-quality, long-life mines, which provide a stable foundation for future cash flow generation.

Barrick Gold's balance sheet strength is further supported by its cash flow generation. The company's operating cash flow grew 20% to $4.49 billion in 2024, while its free cash flow more than doubled to $1.32 billion. Barrick Gold's strong cash flow generation enables the company to reinvest in its operations and exploration activities, potentially leading to increased gold reserves and production. This, in turn, can support dividend growth.

Barrick Gold's dividend history and growth prospects compare favorably to its peers in the mining sector. The company's dividend yield is higher than that of Newmont Corporation (NEM) and Franco-Nevada Corporation (FNV), while its payout ratio is lower than Newmont's but higher than Franco-Nevada's. Barrick Gold's dividend growth rate is lower than Franco-Nevada's but higher than Newmont's, indicating a solid but not exceptional growth track record. Overall, Barrick Gold's dividend history and growth prospects compare favorably to its peers in the mining sector.

Barrick Gold's cost management strategies play a significant role in its dividend sustainability and growth potential. The company's effective cost management enables it to maintain its dividend payments even when gold prices fluctuate. Barrick Gold's cost management strategies also enable the company to reinvest in its operations and exploration activities, potentially leading to increased gold reserves and production. This, in turn, can support dividend growth. Barrick Gold's cost management strategies are further supported by its strong balance sheet and cash flow generation.

Barrick Gold's dividend sustainability and growth potential are further enhanced by its gold price sensitivity. The company's lower production costs make it more resilient to gold price fluctuations, potentially offering more stable dividends. Barrick Gold's gold price sensitivity is further supported by its strong production profile and asset portfolio, which provide a stable foundation for future cash flow generation.

Barrick Gold's dividend sustainability and growth potential are further enhanced by its analyst ratings. The company has an average analyst rating of "Buy" from 9 stock analysts, with a target price of $22.44, predicting an increase of 21.69% from the current stock price of $18.44. Barrick Gold's analyst ratings reflect the company's strong dividend history, growth prospects, and cost management strategies.

In conclusion, Barrick Gold Corporation (GOLD) stands out among other foreign dividend stocks in the eyes of analysts due to its strong dividend history, growth prospects, and cost management strategies. The company's dividend yield is higher than the industry average, while its payout ratio is conservative, indicating room for future growth. Barrick Gold's financial stability is evident in its strong balance sheet and cash flow generation. The company's dividend growth is supported by its effective cost management strategies and strong production profile and asset portfolio. Barrick Gold's dividend sustainability and growth potential are further enhanced by its gold price sensitivity and analyst ratings. Overall, Barrick Gold Corporation (GOLD) is a compelling choice for investors seeking a stable income stream with growth potential.