Wheaton Precious Metals
This is another precious metals company that makes good sense for more conservative accounts looking for exposure to the sector.
Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.
Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, Lundin Mining’s Zinkgruvan mine in Sweden and Glencore’s Antamina and Yauliyacu mines in Peru, then sells the silver and gold into the open market.
Back in the summer, the company increased the dividend to shareholders to 30% of operating cash flow. Based on the new policy, the third-quarter dividend payout was $0.10 per share, up 43% from the second-quarter dividend.
Between cash and the revolver, the company has liquidity of around $1.12 billion to acquire new streams and interests.
Shareholders receive a 1.91% dividend after the hike. The $25 RBC price target compares with the consensus target of $20.91. Shares were last seen trading at $20.91, in a 52-week range of $16.94 to $24.97.
Source: 24-7 Wall Street