Silver is a notoriously volatile metal capable of wide price swings in either direction.
However, the metal is also seen by many as a safe-haven investment and a hedge against inflation. While investing in silver bullion is one popular method for gaining exposure, silver-mining companies offer another route.
Silver-mining companies with strong balance sheets and experienced management teams are able to capitalize on high silver prices and weather the storm of low silver prices. Some of the most profitable silver-mining companies are even able to offer investors dividends, which may be appealing for those who are in it for the long haul.
Dividends are especially attractive in the often-unstable mining sector because they give investors a degree of security — if a company pays a dividend, it generally feels that it has the cash to do so, and believes it will have the ongoing profits it needs to keep those payments coming.
Here’s a brief overview of five silver stocks that pay a dividend. Companies are listed in alphabetical order, and all data included was current as of April 26, 2024.
1. Pan American Silver (TSX:PAAS,NASDAQ:PAAS)
Market cap: C$9.4 4billion, US$6.91 billion; dividend yield: 2.09 percent
Founded by Ross Beaty in 1994, Pan American Silver currently operates several mines located in Mexico, Peru, Canada, Bolivia and Argentina. Last year, Pan American Silver completed the successful acquisition of Yamana Gold bringing the latter’s four producing Latin American assets into Pan American’s portfolio. The company’s 2023 silver production came in at 20.4 million ounces.
The highest dividend Pan American has ever paid is US$0.125 per share, and it was able to pay a dividend of that amount a noteworthy nine times in a row between March 18, 2013, and March 13, 2015. The silver stock paid its most recent quarterly dividend on March 15, 2024, at US$0.10 per share.
2. Fresnillo (LSE:FRES)
Market cap: GBP 4.92 billion; dividend yield: 2.03 percent
Major miner Fresnillo bills itself as the world’s leading primary silver producer. Its precious metals assets include the Fresnillo mine, which is the largest primary silver mine in the world, as well as a portfolio of development and exploration prospects. Fresnillo’s silver output for the full-year 2023 came to 56.3 million ounces.
This silver stock pays two dividends per year, and its dividend policy takes business profitability and underlying earnings growth into account, as well as capital requirements and cash flow. Dividends from the company are paid in pounds sterling unless shareholders elect to be paid in US dollars. Fresnillo paid its 2023 interim dividend of 1.1058 pence, or US$0.014, on September 14, 2023, and it will pay its 2023 final dividend of 3.4059 pence, or US$0.042, on May 29, 2024.
3. Wheaton Precious Metals (TSX:WPM,NYSE:WPM)
Market cap: C$33.44 billion, US$24.40 billion; dividend yield: 1.11 percent
Wheaton Precious Metals, a well-known name in the silver space largely because of its business model — it is the world’s biggest precious metals streaming company. Streaming companies operate differently from miners, making upfront payments to a variety of metals companies in order to gain the right to purchase all or a portion of their metal production at a low, fixed cost.
The company currently has streaming agreements in place for 18 operating mines and 2 development-stage projects. It is interested in companies operating in politically stable jurisdictions, and states that its value should rise with the price of silver and gold. As a result, Wheaton sees itself offering investors multiple benefits while reducing many of the downside risks that traditional miners face.
Wheaton pays a quarterly dividend, and it reached US$0.15 per share on September 9, 2021, a level that it has maintained since, and surpassed with its latest dividend paid on April 15, 2024.
4. Silvercorp Metals (TSX:SVM,NYSE:SVM)
Market cap: C$798.82 million, US$626.35 million; dividend yield: 0.70 percent
Silvercorp Metals has multiple silver-mining operations in China, and is focused on acquiring and growing underdeveloped projects with high upside. It’s fiscal year 2024 silver equivalent production came in at approximately 6.8 million ounces, down 2 percent from the previous year.
Silvercorp offers shareholders a semiannual dividend, which it states is “based on a number of factors including commodity prices, market conditions, financial results, cash flows from operations, expected cash requirements and other relevant factors.” Its most recent dividend was paid on December 15, 2023, at a rate of US$0.0125 per share.
5. Hecla Mining (NYSE:HL)
Market cap: US$3.15 billion; dividend yield: 0.50 percent
Last on this list of silver stocks that pay dividends is Hecla Mining, the largest primary silver producer in the US, as well as an emerging gold producer. It is the oldest precious metals miner in North America and owns operating silver mines in the US and Mexico, as well as a Quebec-based gold mine. The company acquired Klondex Mines in mid-2018, expanding its portfolio with three high-grade gold mines in Nevada. Hecla gained a position in the Keno Hill silver district, which has Canada’s highest-grade silver reserves, with the acquisition of Alexco Resource in 2022. The company reported silver production of 14.3 million ounces for 2023.
The silver stock pays an annual minimum common stock dividend, distributing it on a quarterly basis. Hecla also pays a silver-price-linked common stock dividend based on the company’s average realized silver price for the preceding quarter. On March 25, 2024, Hecla paid out a quarterly cash dividend of $0.00625 per share of common stock ( $0.00375 per share for the minimum dividend component plus $0.0025 per share for the silver-linked component. A quarterly cash dividend of $0.875 per share of preferred stock, was paid on April 1, 2024.
FAQs for silver dividend stocks
What are dividend stocks?
Dividend stocks regularly pay a sum of money to a class of shareholders out of the company’s earnings. To qualify for a dividend payout, an investor must have owned the stock on the ex-dividend date.
Dividends are often issued as cash payments sent to a shareholder’s brokerage account, but can also be issued as stock or discounts on share purchases.
How to invest in dividend stocks?
Contact your broker to learn more about how to take advantage of companies offering dividend programs. Some dividend stocks may also offer a dividend reinvestment program, allowing shareholders to automatically buy new shares with their dividends, either commission-free or at a reduced cost.
How much do dividend stocks pay?
A company’s board of directors is responsible for setting a dividend policy and will determine the size of the dividend payout based on the firm’s long-term revenue outlook.
The size of an individual shareholder’s dividend payout depends on the number of shares owned in that company. For example, if an investor owned 1,000 shares of Wheaton Precious Metals, which is currently paying a dividend of US$0.15 per share, they would get US$150 every quarter — or US$600 annually.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
