The COVID-19 pandemic caused devastating economic turmoil last year. Indeed, the increased volatility in the markets materialized in a way that we had not seen in some time.

However, a year later, much of the volatility has subsided. Indeed, the remaining volatility appears to be on the rise.

Speculative assets like Bitcoin significantly outperform stocks. Safe havens underperform as investors look to cyclical or growth stocks for capital appreciation.

That said, being on the defensive is always a good idea. If and when volatility resurfaces, having a high margin of safety in your portfolio is a good thing.

As a result, stick to safe values ​​such as Kirkland Lake Gold (TSX: KL) (NYSE: KL) is a great idea. For more cautious investors, here’s why I would recommend Kirkland Lake right now.

Very attractive valuation compared to the market

This is arguably one of the best times to buy a gold miner like Kirkland. Gold prices remain high (but not at historic highs). As a result, gold miners get some of their best results.

The same goes for Kirkland Lake. The company ended 2020 in the best financial position in its history. Despite massive increases in spending on dividend payouts, stock buybacks, and capital spending, this miner increased his total cash balance by 20% to $ 848 million.

That same year, Kirkland spent more than $ 732 million to repurchase 18.9 million shares, $ 115.9 million in dividend payments and $ 98.6 million in debt repayment from its recent acquisition.

That’s a pretty decent return for shareholders.

At the time of writing, the company is reporting 2.1%, with an annual payout of $ 0.75. With estimated EPS of $ 3.73 in 2021 and no debt going forward, there’s plenty of room to increase its dividends. The stocks have a P / E ratio (TTM) of 15 times earnings and an EV / EBITDA of 5.5, among the lowest in the industry.

Strong growth in free cash flow

Kirkland generates a ton of free cash flow. This is a good thing for all shareholders. Why? Well, the company’s cash flow and balance sheet have never looked better. Indeed, the company is ready to pursue its mergers and acquisitions to strengthen its long-term growth prospects.

The company’s recent Detour deal was one of the markets initially deplored. However, after a reassessment of the mine’s grade, investors seem more optimistic about this transaction.

Other such deals could give a boost to the horizon. If the company can continue to increase production (and grade), that stock should be gone.

Indeed, there is no better time to own gold mines like Kirkland Lake than right now.