I’d Use $5,000 to Buy Kinross Gold for Lifetime Income

This gold stock may already be rising, but there is so much more for today’s buyer.

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Most investors want their money to work harder than they do. Whether it’s through dividends, capital gains, or a combination of both, the end goal is often the same: long-term income and financial peace of mind. One stock that deserves a fresh look in that regard is Kinross Gold (TSX:K), a Canadian miner that’s no stranger to delivering value. And after a blowout second quarter in 2025, it might just be the perfect pick for those looking to turn $5,000 into a steady stream of income.

Into earnings

Kinross stock has soared over 80% in the last year alone. But even with the stock’s rise, it still trades at just 13 times earnings and under 3.3 times sales. That’s a bargain when you consider what investors are getting for their money. That’s a gold producer firing on all cylinders, with a pristine balance sheet, rock-solid cash flow, and a plan to return $650 million to shareholders this year through dividends and buybacks.

Let’s talk numbers. In Q2 2025, Kinross reported adjusted net earnings of $541 million, or $0.44 per share. That’s up from just $0.14 per share in Q2 2024. It also generated a record $646.6 million in free cash flow, nearly doubling year over year, and margins exploded to $2,204 per ounce sold. And with $1.1 billion in cash and a net debt position of just $100 million, there’s no financial handcuff holding the company back from increasing a payout in the near future.

To be clear, Kinross is not a bond, it’s a gold stock. That means your income isn’t only coming from the dividend, it’s coming from long-term value creation with management doing its part. Kinross already bought back $225 million in shares in 2025 alone, with a target of $500 million in buybacks by year-end. That reduces share count and boosts earnings per share, which in turn supports a higher dividend.

Looking ahead

Kinross isn’t resting on existing assets. It has several high-potential development projects in the pipeline. From the Great Bear project in Canada to the Curlew Basin and Round Mountain Phase X in the U.S., Kinross is laying the groundwork for future production and margin expansion. These aren’t speculative moonshots either, but backed by strong drill results, environmental studies, and real capital investment.

The gold stock’s operational strength is also worth highlighting. Kinross produced over 512,000 gold equivalent ounces in Q2, with strong contributions from Paracatu, Fort Knox, and Bald Mountain. Even as some mines like Tasiast had planned grade declines, the overall portfolio still delivered industry-leading profitability. That kind of consistency gives income investors the confidence they need.

Of course, there are risks. Gold prices can be volatile. Geopolitical instability, cost inflation, and regulatory hurdles are part of the mining landscape. But Kinross has proven it can navigate those headwinds. It’s diversified across countries, it’s focused on sustainable mining practices, and it has enough liquidity to absorb shocks.

Bottom line

At the end of the day, Kinross isn’t going to give you sky-high yield overnight. Yet it offers something better: the kind of operational and financial performance that supports long-term dividend growth. That’s why $5,000 in this gold stock today isn’t just a bet on gold. It’s a bet on earning reliable income for decades to come.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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