Wheaton Precious Metals Sees Elevated Gold and Silver Prices Boost Cash Flow

Wheaton Precious Metals has raised its dividend by 18% and is poised to grow further due to elevated gold and silver prices. The company's streaming business model shields it from inflation, allowing it to lock in low purchase costs for future metals production. This structure boosts cash flow, as Wheaton pays an average contractual price of $9.57 per ounce of silver and $543 per ounce of gold, then sells that metal at elevated spot prices.

Through the first half of 2026, Wheaton's cash operating margin for silver jumped 139% to $66.96 per ounce, while its cash operating margin for gold increased by 56% to $4,099 per ounce. The company has a modest payout ratio of 16%, leaving room to grow the dividend further.

Investors seeking exposure to precious metals that benefit from rising prices and are less affected by inflation should consider Wheaton Precious Metals as a solid stock to buy. However, it's worth noting that The Motley Fool Stock Advisor analyst team did not include Wheaton in their list of top 10 stocks for investors to buy now.