2 dividend stocks in buy zone- WGX, RRL

Investors who are looking to invest in the stock market can consider dividend stocks as an attractive option. Dividend stocks offer regular income in the form of dividends and also provide the potential for capital appreciation. In 2023, two dividend stocks that investors may consider adding to their portfolio are WGX and RRL.

Westgold Resources Limited (ASX: WGX) is a gold exploration and mining company based in Australia. The company operates several gold mines in Western Australia and produces approximately 300,000 ounces of gold per year.

• WGX has a strong balance sheet and a dividend amount of AU$0.020 with a dividend yield of around 0.00%.
• Furthermore, WGX has a history of increasing its dividends, demonstrating its commitment to returning value to its shareholders.
• The company's financial performance has also been strong, with a Dividend Yield forecast in 3 years of 2.4%

Investors may be interested in WGX due to its exposure to the gold market. Gold is a popular investment choice for investors seeking a safe haven during times of economic uncertainty. The demand for gold tends to increase when there is economic turmoil or inflationary pressures. As a result, the price of gold tends to rise, which benefits gold mining companies such as WGX.

Regis Resources Limited (ASX: RRL) is another Australian-based gold mining company. The company operates several gold mines in Western Australia and produces approximately 400,000 ounces of gold per year.

• RRL has a dividend amount of AU$0.020 yield of around 0.92%.
• Investors may be interested in RRL for similar reasons as WGX. The company's exposure to the gold market provides a potential hedge against economic uncertainty.
• Furthermore, RRL has a solid track record of financial performance with a Dividend Yield forecast in 3 years of 1.8%
• Additionally, highlighting its commitment to returning value to its shareholders. RRL also has a strong balance sheet, with a debt-to-equity ratio of just 19.4, indicating a low level of debt relative to equity.

Investors should also consider the risks associated with investing in dividend stocks. For example, the price of gold can be volatile, and fluctuations in the gold market can impact the performance of gold mining companies. Additionally, there may be risks associated with the specific companies, such as operational risks or regulatory risks.

Conclusion

In conclusion, WGX and RRL are two dividend stocks that investors may consider adding to their portfolio in 2023. Both companies operate in the gold mining industry, providing exposure to the gold market, which can act as a hedge against economic uncertainty. Additionally, both companies have a strong track record of financial performance and a history of increasing dividends. However, investors should also consider the risks associated with investing in dividend stocks and the valuation of the stocks before making an investment decision.

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