Wheaton Precious Metals Corp. (WPM) is a precious metals streaming business with a high-quality portfolio of long-life, low-cost assets. Its streaming agreements span 23 operating mines and eight development stage projects.
The company generated 57% of its revenue from gold, 40% of its revenue from silver and remaining from palladium during the fourth quarter of 2020.
Rising Prices Support Higher Dividends
Wheaton Precious Metals reported fourth quarter revenue that rose 28% to $286 million, missing consensus estimates by $10 million, as a 33% increase in the average realized gold equivalent price offset a 3% decrease in the number of gold equivalent ounces sold. Non-GAAP earnings also missed estimates by a cent at $0.33 per share for the quarter.
The outlook for precious metal prices has been volatile over the past few weeks. With the passage of President Biden’s $1.9 trillion stimulus bill, 10-year Treasury yields experienced their sharpest rise in recent memory, putting pressure on gold and other precious metal prices.
Despite these declines, RBC Capital’s Josh Wolfson believes that the recent weakness in precious metal prices has improved the stock’s valuation and expressed confidence in its highly cash-generative business over the long term.
The company raised its quarterly dividend by 8.3% to $0.13 per share, which represents a 1.32% forward yield. The dividend is payable on April 13, 2021, to shareholders on record as of March 26, 2021.
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