Silver stocks operate in a highly cyclical industry. Profits for mining companies are reliant on high precious metals prices. During times of rising precious metals prices, this results in a massive windfall.
But the opposite is also true–lower precious metals prices can cause mining companies to post losses. As a result, income investors looking for stable cash flow and reliable dividends need to tread carefully.
Wheaton is the largest metal streaming company in the world. Streaming means that the company purchases the right to buy silver and gold at a low fixed cost instead of outright mine ownership.
The company has operations in both North and South America, and has used acquisitions to help fuel future growth, for example acquiring Canadian precious metal mining company Tahoe Resources in 2019.