Gold has become a strong complementary focus for alternative investors. This precious metal is used in the creation of solar panels and integrated circuits for power delivery and battery storage systems. In today’s uncertain economic climate, gold can offer stability and long term growth potential.
Osisko Gold Royalties Ltd. (NYSE: OR) is engaged in exploration and gold mining. Its stock has grown 19.95% over the last month, due to high confidence in gold during the Coronavirus Pandemic. With a bargain price and a strong dividend, this can provide income for highly speculative alternative portfolios.
Despite losing revenue in the previous fiscal year, this company operates with a strong EBITDA margin of 25.72%. Last year it turned around four years of negative cash flow with $7.46 million in free cash flow. The dividend yield of 1.51% beats the market average and is compelling in a zero-interest rate environment.
Today’s price is well below the 52-week peak of $13.43, suggesting a moderate upside for investors who buy in May. Gold may not be the most direct way to invest in alternative stocks, but the relationship between gold and the energy industry is worth taking note of when building a portfolio.
- 1 Year Price Growth: -5.44%
- YTD Price Growth: -3.40%
- 3 Month Price Growth: -2.49%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.