Should You Consider Purchasing Gold Stocks That Pay Dividends as Trump Aims to Revitalize Them?

Precious Metals Surge Amid Global Uncertainty

Gold and other precious metals have emerged as standout investments, especially during periods of heightened geopolitical risk and market volatility. In 2025, these assets outperformed all other major classes, and despite some skepticism—particularly regarding silver (SIH26)—their upward momentum has persisted into 2026.

Mining companies specializing in precious metals are experiencing unprecedented growth, fueled by exceptional cash flows. These financial gains have enabled firms to strengthen their balance sheets and reward shareholders through increased dividends and stock buybacks.

Let’s take a closer look at AngloGold Ashanti (AU), a gold miner known for its impressive dividend yield, as the Trump administration’s policies continue to shine a spotlight on gold investments.

Gold’s Bull Run Shows No Signs of Slowing

My positive outlook on gold (GCG26) remains unchanged. The ongoing climate of global instability continues to enhance gold’s reputation as a safe haven. Central banks are expected to keep adding gold to their reserves, diversifying away from the U.S. dollar. Both individual and institutional investors are also increasing their gold holdings to balance their portfolios.

Recent geopolitical developments—including U.S. actions in Venezuela and threats toward Cuba and Greenland—have heightened tensions, boosting both defense stocks and gold. The indictment of Fed Chair Jerome Powell further fueled gold buying. While the president has issued directives targeting defense firms that prioritize shareholder returns over innovation, gold mining companies are still positioned to deliver strong returns to investors.

Previously, I suggested waiting for a pullback in AU stock before buying. Although the stock did dip, it has since rallied alongside gold’s surge to record highs. The question now is whether AU remains a compelling buy or if caution is warranted.

Forecast for AngloGold Ashanti (AU)

According to a consensus of seven analysts surveyed by Barchart, AU is rated a “Strong Buy.” However, its share price has already surpassed the average target of $96.28, likely due to the stock’s rapid ascent and analysts’ delayed adjustments.

It’s possible that analysts will soon revise their price targets upward to reflect current market conditions. With gold prices remaining robust, gold miners like AU are poised for strong earnings, which could prompt analysts to update their forecasts. AngloGold is currently valued at a forward EV/EBITDA ratio of 6.3x, which appears reasonable given the favorable outlook for gold.

In my view, gold offers a more attractive short-term risk-reward profile than equities, and demand for the metal is likely to remain strong. While a correction in gold prices could occur later this year, I remain strategically optimistic about both gold and the companies that mine it. Given these factors, AU stands out as a solid addition to a diversified portfolio.

Dividend Prospects for AngloGold Shareholders

In addition to potential capital appreciation, AU shareholders can look forward to generous dividends this year. The company maintains a robust payout policy, currently distributing 12.5 cents per share each quarter and committing to return 50% of its annual free cash flow to investors.

Last year, AU deviated from its usual approach by issuing extra payments during the second and third quarters of 2025, rather than making a single “true-up” payment at year-end. Although this change means the annual dividend may be slightly lower than it could have been, the payout remains substantial. With gold prices now higher than last year, AU’s 2026 dividend is expected to surpass its 2025 distribution.

Overall, AngloGold Ashanti remains one of my top choices among gold miners, thanks to its strengthened portfolio, improved financial position, and attractive dividend policy.