Newmont Corporation (NEM): Among the Best Gold Dividend Stocks to Buy According to Analysts

Newmont Corporation (NEM) has emerged as one of the top gold dividend stocks to buy, according to analysts. The company's strong dividend history, attractive yield, and positive analyst ratings make it an appealing choice for income-oriented investors. In this article, we will explore the factors contributing to NEM's status as a top gold dividend stock and discuss the key risks and challenges facing the company in the near and long-term.

Dividend History and Yield

Newmont Corporation has a history of paying dividends, with an annual dividend of $1.00 per share, yielding 2.33%. The dividend is paid every three months, with the next ex-dividend date on Mar 4, 2025. This consistent dividend history and attractive yield make NEM an appealing choice for income-oriented investors.

Analyst Ratings and Price Targets

According to the provided data, analysts have a strong consensus on NEM, with an average rating of "Buy." The 12-month stock price forecast is $53.58, which is an increase of 25.07% from the latest price. This positive outlook from analysts indicates that they expect the stock to perform well in the near future.

Gold Price Performance

As a gold mining company, Newmont's stock price is closely tied to the price of gold. With gold prices surging in early 2025, gold mining stocks like NEM have benefited from this trend. The VanEck Gold Miners ETF, for example, has outperformed the S&P 500 since early 2024.



Strong Mineral Reserves

Newmont reported 2024 mineral reserves of 134.1 million gold ounces and 13.5 million tonnes of copper. These substantial reserves ensure that the company has a solid foundation for future production and growth.

Global Operations

Newmont has operations and/or assets in multiple countries, including the United States, Canada, Mexico, and several other nations. This global presence allows the company to diversify its risk and take advantage of opportunities in various markets.

Strong Financial Performance

Newmont reported strong financial results for the fourth quarter and full year 2024, providing full-year 2025 guidance. This positive financial performance indicates that the company is well-positioned for future growth and success.

Key Risks and Challenges

Despite its strong performance, Newmont Corporation faces several risks and challenges that could impact its dividend sustainability and stock performance:

1. Commodity Price Volatility: Gold and other precious metals prices are volatile, which can significantly impact NEM's revenue and profitability. A decline in gold prices could lead to reduced cash flows, potentially affecting the company's ability to maintain its dividend payouts.
2. Operational Risks: NEM's operations are subject to various operational risks, such as labor disputes, equipment failures, and environmental issues. These risks can disrupt production, increase costs, and negatively impact the company's financial performance.
3. Cost Inflation: Rising input costs, such as labor, energy, and materials, can erode NEM's profit margins and impact its ability to maintain dividend payouts.
4. Integration Risks: NEM's growth strategy involves acquiring and integrating new assets. However, these integration processes can be complex and time-consuming, leading to unexpected costs and disruptions in operations.
5. Regulatory and Political Risks: NEM operates in various countries, exposing it to regulatory and political risks. Changes in regulations, taxes, or political instability can impact the company's operations and financial performance.
6. Environmental, Social, and Governance (ESG) Risks: NEM's operations can have environmental impacts, and the company faces expectations to manage these impacts responsibly. Failure to do so could lead to reputational damage, regulatory issues, or increased costs. Additionally, social and governance risks, such as labor disputes or poor corporate governance, can also impact the company's performance.

These risks and challenges could impact NEM's dividend sustainability and stock performance by affecting the company's cash flows, profitability, and reputation. Investors should monitor these factors and consider their potential impact on NEM's financial performance when making investment decisions.

In conclusion, Newmont Corporation (NEM) is considered one of the best gold dividend stocks to buy by analysts due to its strong dividend history, attractive yield, positive analyst ratings, and strong financial performance. However, investors should be aware of the key risks and challenges facing the company and consider their potential impact on NEM's dividend sustainability and stock performance. By carefully evaluating these factors, investors can make informed decisions about adding NEM to their portfolios.