This gold company’s fourth quarter earnings soared by 133%. Its current annual dividend yield is 3.51%, paid quarterly.
B2Gold Corp. (BTG)
From Forecasts & Strategies
Commodities—oil, silver, copper, and aluminum—have all recovered this year. The one exception is gold. Its reputation as the ideal inflation hedge has been tarnished in the past few months. SPDR Gold Shares (GLD) is down 10% so far this year. iShares Silver Trust (SLV) is doing better but is still slightly down for the year.
B2Gold paid its quarterly dividend of 4 cents per share last month, but it hasn’t helped the stock. It is still down 19% for the year. We continue to recommend it as a deeply undervalued stock, selling for less than eight times earnings, with strong fundamentals and a profit margin of 39%.
Miners have been hit by a strong dollar and competition from Bitcoin.
However, the fundamentals for B2Gold couldn’t be stronger. It has reported record annual gold production for 12 years straight, producing more than 1 million ounces last year, with more to come. Revenues jumped 54% to $1.8 billion, while earnings more than doubled to 59 cents per share. B2Gold also doubled its dividend to 4 cents a share to become the highest-yielding mining stock in the world with a 3%+ yield.
B2Gold CEO Clive Johnson noted, “Despite the challenges of the COVID-19 pandemic, B2Gold had another remarkable year of strong growth in 2020, with the achievement of B2Gold’s 12th consecutive year of record annual gold production.”
Wall Street analysts now have a price target of $8.35 for the stock during the next 12 months. If gold turns around, B2Gold could nearly double in a year! That’s why we continue to hold it.
Mark Skousen & Jim Woods, Forecasts & Strategies, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, March 26, 2021