Business & Investment

Buy something shining before 2022 begins

Image Source: Getty Images

With just over a week left in 2021, it’s a great time to rebalance your portfolio before 2022 begins. And, of the various investment options to consider, choosing to buy a shiny one is definitely worthy of your portfolio location.

For reference, I’m referring to investing in precious metals, not luxury jewelery.The investment to consider Wheaton Precious Metals (TSX: WPM)(NYSE: WPM)..

Buy shiny ones

Precious metal stocks are a great investment option to consider, especially when market volatility is high. New COVID variants, inflation, and overheated real estate markets are adding to the usual stressors of this holiday season. In addition, Looney has reached the lowest point in the last four months.

This is where investments like Wheaton can really benefit your portfolio for a variety of reasons.

Let’s start with the fact that Wheaton is not a precious metal miner.Wheaton is a precious metal streamer, This includes subtle but important differences from traditional precious metal mining companions.

The difference is that streamers don’t actually own mines. Instead, they provide prepaid funding to those traditional miners to set up mines and start operations. In exchange for its initial capital injection, streamers are allowed to buy some of the metal produced in the mine at a significant discount.

The discount can be as much as $ 450 per ounce of gold and $ 4 per ounce of silver. To showcase that discount, please note that the current market price is $ 1,800 per ounce of gold and $ 22 per ounce of silver.

The streamer can then either hold the gold or sell it at the current market rate and make a significant profit.

Its unique business model means that the overall risk of streamers is much lower than that of traditional miners. This adds a defensive factor to consider that is not present in precious metal miners.In addition, the streamer is not involved in the day-to-day operations of the mine, so the streamer can be found. Opportunity for growth From other potential mines. This also adds elements of diversification to the mix.

What to buy must be Wheaton

There are many advantages of streaming stock. For Wheaton, the company’s portfolio consists of 24 active mines on three continents. Wheaton also has eight more mines in the development pipeline. This adds an element of long-term growth potential.

In fact, Wheaton announced a new stream of Ontario-based marathon projects this week.

Remember that these mines produce a variety of metals, not just gold and silver. All of this helps the company during the profit season. Again, buying something shiny is fascinating!

Speaking of buying shiny stuff, Wheaton reported the results for the third quarter of last month. That quarter, Wheaton reported revenue of US $ 269 million. In terms of revenue, Wheaton posted adjusted net income of $ 137 million in the quarter.

At the end of the quarter, the company reported strong cash flow of $ 200 million and cash on hand of $ 372 million.

Another important point to consider at Wheaton is the company’s dividends. Wheaton provides investors with quarterly dividends. It is based on 30% of the average cash generated through the business over the last four quarters.

In the latest quarterly update, the dividend reached $ 0.15 per share. This reflects a 25% increase over the same period last year. At the current stock price, the yield is: Considerable yield 1.45%.

Final idea: Should you buy?

There can be no truly risk-free investment. That certainly applies to Wheaton. However, gold and silver prices are expected to be lower in 2022 than they began in 2021. This could make Wheaton a little less attractive in the short term, but the company remains a solid choice in the long run. In my opinion, a small position in Wheaton as part of a larger diversified investment portfolio is guaranteed. Continue; Buy something shiny for this holiday season!

Buy something shining before 2022 begins Buy something shining before 2022 begins

Back to top button