Institutions Are Selling These Rich Dividend Gold Stocks

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 |  Includes: ABX, IAG, NSU
by: Kapitall

Will gold return to a new high, above the $1,900 from August 23, 2011? Are you an income-oriented investor looking for dividend paying stocks?

While you look for those gold gems to add to your portfolio, we wanted to direct your attention to those dividend paying gold stocks perhaps unfairly avoided by institutions.

We screened for gold stocks with a dividend yield of at least 2% and bearish sentiment from institutional investors, with significant net institutional sales over the quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to underperform.

Interactive Chart: Press Play to compare changes in analyst ratings and market cap over the last two years for the 3 stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


(Click to enlarge)

We were left with a list of 3 stocks detailed below. Do you think institutional investors are right to give up on this dividend yield? Start your analysis with the list below.

1. Barrick Gold Corporation (NYSE:ABX): Engages in the production and sale of gold, as well as related activities, such as exploration and mine development. Dividend yield at 2.36%. Market cap at $33.95B, most recent closing price at $33.93. Net institutional sales in the current quarter at -80.4M shares, which represents about 8.06% of the company's float of 996.99M shares.

2. IAMGOLD Corp. (NYSE:IAG): Engages in the exploration, development, and production of mineral resource properties worldwide. Dividend yield at 2.1%. Market cap at $4.51B, most recent closing price at $11.97. Net institutional sales in the current quarter at -52.6M shares, which represents about 16.61% of the company's float of 316.71M shares.

3. Nevsun Resources Ltd. (NYSEMKT:NSU): A natural resource company, together with its subsidiaries, engages in the acquisition, exploration, development, and production of mineral properties. Dividend yield at 2.32%. Market cap at $856.78M, most recent closing price at $4.31. Net institutional sales in the current quarter at -21.9M shares, which represents about 11.06% of the company's float of 198.06M shares.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.