#7 - B2Gold (NYSE:BTG)
Precious metals, and gold in particular, are expected to outperform the market again in 2025. Despite its penny stock status, B2Gold Corp. (NYSE: BTG) is a high-yield dividend stock to consider in this sector. As of December 31, BTG stock had a dividend yield of 6.53% and has increased its dividend at an average rate of over 13% in the last three years.
BTG stock delivered a negative total return of over 17% in the last year. However, some of that loss is due to geopolitical concerns in the African country of Mali, where B2G generates over 50% of its revenue. Nevertheless, the company has a solid balance sheet with $430 million in cash on hand and approximately $200 million in debt.
Analysts are forecasting earnings growth of over 90% in the next 12 months, which makes this a solid example of a stock that could be due for significant share price growth.
About B2Gold
B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp.
More about B2Gold- Current Price
- $3.38
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $4.21 (24.6% Upside)
When interest rates rose in 2022 and 2023, many high-yield dividend stocks fell out of favor—especially when compared to the risk-free return of U.S. Treasuries. But as that cycle turns, investors are renewing their interest in this category of stocks.
As this presentation has shown, dividend yield is only one metric to consider when choosing high-yield dividend stocks. Investors will also want to pay attention to factors like the dividend growth rate. Because many dividend stock investors rely on that income during retirement, owning stocks that increase their dividend payout at a rate higher than the inflation rate is critical.
It's also noteworthy when a company has a consistent history of paying a dividend. Finding companies that increase their dividend payout over time is an even better outcome.
To assist with selecting these stocks, we used the MarketBeat Dividend Screener to filter for stocks with a dividend yield of at least 4.5%. This is likely to keep your return higher than that of the 2-year Treasury note. We also looked for stocks that had an average annual three-year dividend growth of at least 3%, which should provide protection against inflation.
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