He Bet Against Subprime Mortgages, Now John Paulson Is Bullish On Gold Stocks: 2 Gold Mining High Yielders He Owns
A Wall Street investor, who's his claim to fame was betting against subprime mortgages by using credit default swaps, appears to be bullish on equities in the gold sector.
Billionaire hedge fund investor John Paulson made around $15 billion shorting $25 billion worth of subprime mortgages back in 2007-2008.
As the bull run in gold saw a peak in April 2022, equities that mine or trade gold began to fall in line with the commodities price.
In 2010, John Paulson made $6 billion before taxes, by primarily investing in gold equities such as Anglogold Ashanti (NYSE:AU). Out of 32 stock positions, Paulson is holding the stocks of 10 companies that deal with the gold sector, as of the second quarter 13F filings.
These 2 gold mining stocks are offering high yields and have fallen drastically with the price of gold.
Barrick Gold Corp. (NYSE:GOLD) is offering a dividend yield of 5.71% or 80 cents per share annually, making quarterly payments, with a track record of increasing its dividends for three consecutive years. Barrick Gold is one of the world's largest gold producers with nine gold mines, operating mines in North America, South America, Australia, and Africa.
As of Sept. 1, Barrick Gold announced an agreement with Maverix Metals Inc (AMEX:MMX) to sell its portfolio that consists of 22 royalties on the production of minerals from mines located in North America, South America, Australia and Africa. The total consideration of $60 million consists of $50 million in cash payable on closing of the portfolio sale, subject to the exercise of any right of first refusal or buy-down right by the counterparties under certain royalties, and three contingent payments.
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Agnico Eagle Mines Limited (NYSE:AEM) is offering a dividend yield of 4.26% or $1.60 per share annually, through quarterly payments, with a strong track record of increasing its dividends for six consecutive years. Agnico Eagle Mines is a gold miner operating mines in Canada, Mexico, and Finland. It also owns 50% of the Canadian Malartic mine, and produced more than 1.7 million gold ounces in 2020.
Agnico Eagle Mines authorized a normal-course issuer bid in June 2022, and 453,000 common shares were repurchased for $22.3 million. Under the stock repurchase program, the firm can purchase up to $500 million of its common shares, up to a maximum of 5% of its issued and outstanding common shares.
Photo By: Carl Graph From flickr