Homestake Mining After the 1929 Crash
The biggest and most profitable gold mine in the United States during the Great Depression was Homestake Mining which rose from $65 per share in 1929 to more than $300 per share in 1933 and then climbed to a $480 bid and $534 ask in December of 1935. It was the highest-priced, most active stock on the New York Stock Exchange.
During the next six years after the 1929 stock market crash, Homestake Mining paid out a total of $128 in cash dividends. Its dividend in 1929 was $7 per share which them climbed to a staggering 1935 dividend of $56 per share.
One of Homestake’s most notable stockholders was publisher William Randolph Hearst — whose father, the late Senator George Hearst, bought the Homestake claims for $70,000 and incorporated them in San Francisco in 1877.
Homestake Mining earned a compound rate of return of 35% per year from 1929 thru 1935, excluding dividends.