As trust in the U.S. dollar has continued to decline, gold has become more popular than ever. Gold is a natural resource that’s used for thousands of applications, from jewelry to technology, industrial manufacturing, and even space travel! One of the biggest suppliers of gold in the world in Barrick Gold, making it a profitable long-term investment option for traders.
Does Barrick Gold pay a dividend, though? Yes, Barrick Gold pays a dividend. Dividend payouts from Barrick Gold are typically given out every quarter when the company declares profitable earnings and is awarded on a share-by-share basis. The more shares you have when dividends are paid out, the higher the payout you’ll receive.
In today’s article, I’m going to talk a little bit about Barrick Gold, why their stock has become such a hot commodity, as well as how and when Barrick Gold pays out dividends to shareholders. Finally, I’ll also take a minute to break down a popular investing strategy known as dividend capture, and how to use the strategy to take advantage of Barrick Gold’s payouts. It’s time to start putting some extra cash in your pocket!
Barrick Gold Dividends
Barrick Gold has been in business since 1983 and was founded by Peter Munk, who also owns percentages of several other large tech companies. They currently operate in 13 different countries and have a total of 16 mining locations. It’s safe to say they’re one of the largest gold mining organizations in the world, and in 2019, they produced an estimated 5.5 million ounces of gold.
This huge spike in production led to them becoming one of the most in-demand stocks on the market. Their extra revenue meant that investors throughout 2019 and 2020 also took advantage of higher than usual dividend payouts. That being said, if you’re looking for a stock with excellent (and growing) dividend payouts, you can’t go wrong with Barrick Gold.
You can find them listed on the New York Stock Exchange (NYSE) as GOLD.
Why Gold Is Such A Hot Commodity
In 2020, after the world underwent the global COVID-19 pandemic and most governments in the world gave out billions of dollars to stimulate their perspective economies, Americans (and people around the world, for that matter) started to lose trust in traditional fiat currencies. Printing money leads to inflation, which in turn decreases the value of the dollar.
Throughout history, gold has always been an important commodity. In fact, the U.S. dollar was once backed by gold, meaning that you could turn a bill into a bank and be rewarded with a small piece of gold. Since the gold standard was done away with, though, the U.S. dollar is just paper. Whenever the country starts to lose trust in its paper currency, they typically jump straight into gold investment as a way to preserve their money’s value.
That being said, the dollar has grown stronger in the past couple of months in the wake of the recent presidential election, driving the price of gold down. However, most experts see this as temporary and see it as an expected correction from its 2020 peaks. Another common theory as to why gold has temporarily decreased is that investors have been heavily focused on cryptocurrency over the past couple of months. This has caused a reduced interest in gold commodities.
Gold is known for increasing and decreasing throughout the year, though. Its value almost never stays low for long, so the temporary reduction in price may represent a great buy-in value for those who are looking to get in while the market is down. Of course, I’m not authorized to give out professional investment advice, but that’s just a viable theory that others have thrown around.
One interesting development is that Berkshire Hathaway, directed by Warren Buffet, recently purchased just over half of a billion worth of shares in mid-2020. If you know anything about Berkshire Hathaway or Warren Buffet, then you probably know that they don’t make careless investments. The companies they’re invested in are some of the largest multi-national companies globally, so Berkshire Hathaway’s endorsement was a huge green flag for smaller investors across the board.
When Does Barrick Gold Pay Dividends?
According to the company website, Barrick Gold typically pays dividends to their shareholders every 3 months on a quarterly basis. This is because the board of directors releases its public earnings report every 3 months at the end of each quarter. However, their site also claims that investors aren’t entitled to a payout and that dividends are only awarded at the board of directors’ discretion.
As long as their stock is doing well, production is up to standards, and demand is high, they’ll pay a fair dividend relative to their stock value and how much you’ve invested into the company. Most companies release quarterly statements, but there are a few that pay dividends every six months. This is known as a semi-annual dividend payout.
How Much Does Barrick Gold Pay In Dividends?
Barrick Gold’s dividend payout differs significantly from one quarter to another. It’s entirely dependent on how much the company profited during its recently quarterly earnings statement. Their most recent dividend payout was $.09 cents per share. This was over 10% higher than the company’s 2020 fourth-quarter payout of $.08 cents per share.
How Many Shares Do I Need To Own To Get A Dividend Payment?
To receive a dividend payout, investors only need to own a single stock. The more stocks you own, the higher your payout will be. For example, at the payout rate of $.09 cents per share, you would receive $9 for every 100 shares you own.
Investment Strategy: Dividend Capture Strategy
Now, for a final note before I go. Dividend capture strategy is a trading strategy that involves purchasing shares immediately before the dividend payout. For example, if you purchased 100 shares of the stock the day before the dividends were paid out, you would still get your payout, even though you had only owned shares for a short amount of time.
The process of purchasing stocks immediately before dividend payouts are known as dividend capture. What you do with your shares after dividends have been paid out is entirely up to you. Perhaps you hold on to the shares for a while or perhaps you get rid of them within a few days! As long as you hold onto the shares for the SEC’s minimum required time, then you’ll have nothing to worry about!