Investing in gold stocks is a great way for investors to diversify their portfolios and help protect against volatility. Gold stocks offer a unique combination of stability and potential for growth over time. As gold prices tend to rise in times of market uncertainty or economic turmoil, these stocks can provide a safe haven for investors and are often seen as a hedge against inflation.
In this article, we will take a look at two Canadian gold stocks that can help fortify your portfolio: Barrick Gold Corporation (TSX: ABX) and Kinross Gold Corporation (TSX: K).
Barrick Gold Corporation (TSX: ABX)
Barrick Gold Corporation is the world’s largest gold producer, operating more than 30 mines on five continents around the globe. Barrick has recently been expanding its operations into Latin America and Africa which makes it well-positioned to benefit from growth in emerging markets.
Barrick has consistently increased its dividend payments since 2010 and is expected to continue to increase dividends result from high production levels and an efficient cost structure going forward. Additionally, it has also reduced its overall debt burden which adds further strength to its long-term outlook.
Kinross Gold Corporation (TSX: K)
Kinross Gold Corporation is another major Canadian gold producer with operations in North America, South America, Russia, West Africa and Chile. Its main focus is on exploration activities in order to expand its production base which could result in significant upside potential for those investing in the stock long term.
Kinross has a strong balance sheet with low debt levels compared to peers; this means that there is less risk associated with investing in the company as it has more flexibility when it comes to capital expenditure projects or M&A activity down the road. Additionally, unlike some of its competitors, Kinross pays out no dividends meaning that all profits made by shareholders come from share price appreciation instead.
Both Barrick Gold Corporation and Kinross Gold Corporation offer investors an attractive opportunity within the gold sector due to their stability, growth prospects, efficient cost structures and lack of debt levels compared to peers. These two stocks have proven themselves resilient during volatile periods of market uncertainty and can act as powerful additions for those looking for ways to strengthen their portfolio positions long term.
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